Funding amount
- You can apply for up to 100% of the INSEAD tuition.
- The minimum amount is EUR 10,000.
- Tuition payments are made directly to INSEAD.
- The funding can be used for tuition and/or living expenses.
How does the repayment work?
Based on your application, the annual repayment percentage will be set. Once you earn above the minimum income, you repay the amount corresponding to your percentage.
Example 1: calculation for regular case
- Funding amount: EUR 40,000
- Assumption for individual income share: 4% annually
- Student will double his income within 10 years, 1-year grace period after graduation and one grace period in year 5 for individual leave (travel/parental).
- Total repayment EUR 57,946, roughly 1.45 the funding amount.
- The average monthly rate overall is EUR 483. The rate depends on your actual income and varies in the example from EUR 0 to EUR 333 and finally to EUR 666.
- The effective interest rate is roughly 5.0% p.a. but since this is an income-share agreement this hypothetical interest rate can only be calculated once the contract has ended.
Example 2: calculation for successful case
- Funding amount: EUR 40,000
- Assumption for individual income share: 4% annually
- Student will increase his income by factor 3.5 within 10 years, 1-year grace period.
- Total repayment EUR 80,000, 2.0 times the funding amount.
- The average monthly rate overall is EUR 667. The rate depends on the actual income and varies in the example from EUR 0 to EUR 333 and finally to EUR 1,071.
- The effective interest rate is 10.4% p.a. but since this is an income share agreement, a hypothetical interest rate can be only calculated once the contract has ended.
- If the student has an even higher income, the overall repayment is capped at twice the funding amount adjusted to inflation (German inflation rates).
In such a case the repayment obligation stops before the contractual 10 payment years are completed.
Why should you apply for the INSEAD education fund?
YOUR ADVANTAGES
# FREEDOM:
After completing your studies you can design your career and plan your life without regard to a fixed credit burden and bills of debt.
It does not matter whether you take a trip around the world, parental leave and/or start your own company:
As long as your annual gross income is below EUR 30,000, the obligation of payment is postponed.
# FLEXIBILITY:
Repayment is tied to your future gross income and adapts itself to your personal solvency. Those who earn less, also pay back less.
Your repayment starts when you earn an annual gross income of EUR 30,000.
# SECURITY:
At university and during the repayment phase, you remain financially secure.
The payments are made only at the time in which you have sufficient financial means.
As soon as you have no income, or it is lower than the annual minimum income, the obligation of payment is cancelled for that year.
The risk of a fixed credit payment is excluded since there is no rigid repayment plan.
# FAIRNESS:
The repayments adapt themselves to your economic situation. A disproportionate charge on your income is not possible.
Repayments have an annual and overal cap, so that you are not disproportionately charged if you earn an above-average salary.
# SOLIDARITY PRINCIPLE:
The income dependent repayments contain a solidarity contribution to compensate own financial “squeezes” and those of fellow students.
In addition, this contribution supplies funding for future students.
In this way, you are giving back a small share of what you have achieved through your INSEAD degree.
# NO CURRENCY RISK:
The income share you pay back will stay the same regardless of the currency of your income.
# INDEPENDENCE:
The model is independent and combinable with other study financing possibilities (grant, scholarship, etc.).
Guarantors or securities are not necessary. Motivation and personality are the most important criteria. It`s you who counts!