Why some backers of student lending product welcome CFPB crackdown

WASHINGTON — A Consumer Financial Protection Bureau order against a provider of income-share agreements signals regulatory tightening for all ISAs, but could also give the education finance sector legal clarity, observers said.

ISAs offer tuition money in exchange for some of a student’s future income. While many see the product as a progressive alternative to traditional student loans, consumer advocates say some have avoided regulatory scrutiny by claiming ISAs are not credit.