Vemo Education

Vemo Education's core business involves partnering with colleges, universities, and skills-based training providers to design, implement, and service Income Share Agreements (ISAs). These agreements provide an alternative to traditional student loans by funding a student's education in exchange for a percentage of their future income for a set period after graduation. This model aligns the institution's financial incentives with student outcomes, as the institution's return is tied to the graduate's success in the job market. Vemo provides the necessary infrastructure for originating, disbursing, and servicing these income-based payment products, offering a full-service solution to its partner institutions. The firm's revenue is generated through these partnerships with educational institutions.

A significant milestone for the company was its partnership with Purdue University in 2016 to launch "Back a Boiler," one of the first ISA programs at a major U.S. university. By its first academic year in 2016-2017, Vemo had facilitated $23 million in ISAs. The company has since expanded its partnerships to over 30 institutions nationwide. In May 2021, Vemo Education acquired Edmit, a company providing college planning tools to help families make informed financial decisions about higher education, to enhance its offerings by providing greater transparency on the return of a college degree. However, the company has also faced scrutiny; in 2020, consumer groups filed a complaint with the Federal Trade Commission alleging that Vemo's comparison tools used misleading information to make ISAs appear more attractive than traditional loans, a claim the company addressed by stating they continuously work to improve the clarity and accuracy of their tools.