Similar to how the Intelligence Quotient (I.Q.) measures cognitive ability and human intelligence, and how the Emotional Quotient (E.Q.) measures social and interpersonal intelligence, AQ measures academic intelligence along with a proprietary combination of social and intellectual assessment.
The primary function of AQ is to help determine the income potential of registered users based on each individual’s profile data (level of education, grades, class ranking, social activities, leadership roles, work history etc.) and well as any affiliated institution’s AQ rating score. Combining the two metrics allows the database to assess each and every user. The secondary function of AQ is to present the AQ Scores and AQ Ratings to AQ Partners for tuition investment or refinancing of student loan debt, whichever may be applicable*
Upon registering as an AQ User, AQ will use the proprietary formula to calculate your AQ Score. The AQ system will use your AQ Score to help correlate your future income potential and to facilitate monetization by creating an asset through our AlphaPact , which is also known as an income share agreement, or “ISA”. Through the AlphaPact , or ISA, AQ Partners can partner with you to reduce or offload your existing loan debt and essentially eliminate your risk of default**
It is important to remember that having a higher AQ does not always mean that you are going to make a lot of money, just like having a lower AQ does not always mean you will struggle to earn a decent salary; however, either AQ extreme might simply indicate either a high income stability prospect or a high income volatility opportunity set.
The AlphaPact is a legal agreement that is created based on your AQ score. AQ projects your earning potential and then securitizes that potential in the form of an AlphaPact with AQ, you and the accredited AQ Partner who will either buy out your existing debt balance or fund your tuition payable* in exchange for a fixed percentage of your income and the term (as stated in number of months) of the AlphaPact. The specific fixed percentage and maximum number of months will be determined on an individualized basis. Note: The AlphaPact may also take into account traditional lender data (i.e. Credit scores).
For instance, John Doe has an AQ Score of 750, an AQ valuation of USD 1,000,000. His student loan debt outstanding is USD 100,000 so his Alpha Pact is for USD 100,000 student loan debt principal buyout. Using his AQ Score of 750, his contract terms might be: ISA Rate of 7% | ISA Term of 120 Months
Instead of charging you interest on principal, the AlphaPact is an income share agreement (ISA) that will be repaid over the term based on a percentage of your income. Thus, your repayment is aligned with your actual earnings, which frees up your own earning capital for more important things in the here and now. Plus, AlphaPacts are generally repaid over a shorter amount of time than straight debt, so you will be finished paying off your loans faster, which will free up your capital for other investments (i.e. retirement savings, home down payment, etc.). See below image using the John Doe example of the AlphaPact vs. a traditional fixed rate (9%) interest bearing student loan***
As more students and graduates apply for AQ scores, their data will be used to dynamically re-rank institutional and Member AQ scores. If your institution proves a beneficial return (or 'alpha') over the cost of tuition, the institution ranking will go up, which in turn increases your AQ Score, earning potential, and the value of your AlphaPact.
Yes. Alpha Quotient can assist with the refinancing of all debt. Please ensure your profile is filled out accurately and select
Learn about Alpha Pact in your dashboard. We'll be reaching out to let you know how we can help!
Alpha Quotient offers their Alpha Pact participants various resources to support you in reaching your goals. We take a customized approach with each member. Some services include:
- Mentoring from experienced professionals
- Career Services
- Help with resume writing, interview skills, and LinkedIn profile.
- Recruiting Events
- Exclusive Networking Events
All offerings are being conducted pursuant to Rule 506(b) of Regulation D under the Securities Act, and as such, only persons who are (and who certify that they are) “accredited investors” as defined in Rule 501 may participate in any offerings. Investments by non-accredited investors will not be accepted. All of our securities related activities are conducted through a registered Broker/Dealer. Please contact us if you have any concerns or questions.
*this is not to be considered an offer for investment
**all references to "investor" or "partner" herein refer to accredited investor as defined in Rule 501 of Regulation D under the SECURITIES ACT OF 1933
***Example includes stated assumptions which are for presentation purposes only and which may differ from actual terms used