Student loans have helped millions go to college.
But today, college looks different than it used to. Some people want traditional four-year degrees. Others want short programs or online classes to get job-ready fast. And yet there are those that don’t see the need to attend higher educational courses because artificial intelligence, social media, advancements in technology make it so that you can learn as you go.
Basically – the education landscape combined with the fact that many roles exist today that didn’t 10 years ago – needs to factor into how we pay for education.
This is part of the future of student loans: a shift in how people think about borrowing, repayment, and the return on investment for higher education.
This new approach is sometimes called a “student lending paradigm”, or, a new way of thinking about loans and other ways to fund learning.
What is the ‘Student Lending Paradigm’?
The student lending paradigm is the system used to give out and manage student loans. It mostly supports bigger loans for full-time degrees. But more students now want other types of education, like job training or certificates. That’s why many are looking for alternatives to student loans that offer more flexibility and better fit their goals.
Why do people go to college? Is it really necessary in 2025?
It may seem counterintuitive for us to be answering this question but people go to college to get a good job, learn new skills and/or follow their interests and passions.
But, the job market is changing fast. How AI is changing jobs is just one example – many roles that exist today didn’t exist 10 years ago, and new roles will emerge tomorrow. Because of this, not everyone needs a traditional college path. Some people just need a short course or a specific skill. That’s why it’s worth asking: What’s the best way to pay for college in 2025?
What are some alternatives to student loans?
While student loans are a common way to pay for college, they aren’t the only option. And they may not be the right fit for every learner or every program. Today, there are a growing number of alternatives to student loans that offer more flexibility, lower risk, or better alignment with a student’s career goals.
- Grants – Grants are financial awards that do not need to be repaid. They’re usually offered by the government, schools, or private organizations and are often based on financial need, academic merit, or personal background. Grants are a great option for low-income students or those pursuing degrees in high-demand fields.
Grants vs loans: Unlike loans, grants are essentially free money. But, the amount is limited, and eligibility varies widely. - Income Share Agreements (ISAs) – With an ISA, students agree to pay a fixed percentage of their future income for a set number of years after they graduate and start working. This means if you earn less, you pay less. ISAs are best for students in programs that are likely to lead to high-paying jobs, and for those who want to avoid taking on traditional debt.
Doctors are the most common high-paying jobs to have this option. - Employer-sponsored learning – Many companies now offer tuition assistance or reimbursement as part of their employee benefits. In these programs, an employer may pay for courses, certifications, or even degree programs – especially if the learning helps the employee grow within the company. Often, the employee is required to stay on for a fixed term in order to have fully ‘paid it back’.
In Canada, this is most common in the teaching sector, where Early Educators are often able to apply for an ‘EA License’ and are required to ‘pay it back’ over 5 years of work. - Short-term programs – Career-focused bootcamps, certificate programs, and micro-credentials are becoming popular alternatives to traditional degrees. These programs are shorter, more affordable, and often aligned with in-demand skills.
Financing options for these programs may include installment plans, low-interest microloans, or employer partnerships, making them more accessible without relying on large student loans.
When comparing grants vs loans, keep in mind that grants don’t need to be paid back—but they can be limited. Loans give access to more funds, but must be repaid. The good news? New models help students combine the best of both worlds.
Why is a unified student lending platform important?
The financing options listed above all come with their own rules, workflows, and repayment structures – and they don’t fit neatly into traditional loan servicing systems.
That’s why schools, private/state lenders, and financial institutions need modern, flexible student lending software that can handle:
- Multiple payment models: From federal loans to alternatives to student loans like ISAs and employer-paid programs, modern software must support different funding types in one cohesive system.
- Custom repayment terms: ISAs, for example, aren’t repaid in fixed monthly amounts – they’re tied to income. Some programs offer deferment periods, interest-free terms, or micro-installments for short-term credentials.
- Real-time tracking and servicing: Lenders must know who owes what, when, and under which agreement. Especially as students may switch programs, defer payments, or receive employer contributions.
- Built-in compliance and reporting: Each financing model comes with different state and federal regulations, disclosures, and servicing rules. Automation is key to staying compliant while scaling operations.
- Integration with school and employer systems: Modern platforms must connect with student information systems, payroll providers, and third-party tools to exchange data and track eligibility, payment status, and outcomes.
That’s where platforms like Oracle Financial Services Lending and Leasing (OFSLL) for student lending make a real difference.
OFSLL is a robust, enterprise-grade solution designed to support end-to-end loan origination, servicing, and collections. But more importantly – it’s configurable. That means it can be tailored to support both traditional student loans and flexible models like:
- Income Share Agreements
- Employer-funded education programs
- Short-term or modular credentialing
- Deferred or income-based repayment structures
For lenders and institutions navigating the future of student loans, OFSLL offers the agility, automation, and compliance support needed to succeed in a more dynamic and student-centered market.
DecisivEdge implements and customizes OFSLL for both state-based and private student lenders, ensuring the platform supports both traditional student loans and modern education financing models. We tailor each solution to meet the unique needs of lenders and their borrowers, helping streamline operations, ensure regulatory compliance, and prepare systems for the future of student lending.
If you’d like to learn more, simply fill out the form on our website.
We leave you with this: what SHOULD lenders think about?
- Should repayment depend on the job someone gets after school?
- Can new models help more people pursue higher education?
- Are we using systems that truly support student success?
- How can we offer flexible financing without increasing risk or complexity?
- Are our current systems ready to support alternatives to student loans, like ISAs or employer-sponsored programs?
Lenders who proactively adapt to changing education models and student needs will be better positioned to serve the next generation of learners.