Software engineering students will benefit from deferred tuition payments through an Income Share Agreement (ISA) model
Zagreb, April 23, 2026 – Today, at the premises of Algebra Bernays University, a Memorandum of Understanding was signed with the European Investment Fund (EIF), and Quotanda, marking the University’s first step toward concluding a framework agreement involving a group of selected educational institutions with the EIF in Luxembourg. By signing this agreement, Algebra Bernays University will become the first higher education institution in the Republic of Croatia to secure support from the European Investment Fund (EIF) under the InvestEU programme, thereby enabling students to access innovative education financing models.
The agreement is a guarantee facility under which the EIF assumes a significant portion of the credit risk associated with student financing, allowing Algebra Bernays University to offer more favorable and accessible funding conditions. The programme is exclusively focused on education and skills development, with an emphasis on increasing access to higher education and enhancing employability. It will be available to undergraduate, graduate, and postgraduate students in software engineering programmes.
The signing ceremony was also attended by Marko Primorac, PhD, Associate Professor and Vice-President of the European Investment Bank (EIB), Assoc. Prof. Dr. Mislav Balković, Rector of Algebra Bernays University, Iva Ivanković, PhD, State Secretary at the Ministry of Science, Education and Youth of the Republic of Croatia, Georgiana Buturoiu, Head of Microfinance, Alternative Lenders and Fintech Division at the European Investment Fund (EIF), Ferdinand Wollenberg, Analyst at the EIF, and Lino Pujol, Co-founder of Quotanda.
„The EIF partnership with Quotanda and Algebra Bernays University is a clear triple win, creating long‑term opportunities for Croatian students, the Croatian economy and the European Union,” stated Marko Primorac, Vice‑President of the EIB. “It gives students the chance to pursue courses that match both their talent and the market needs, not only those they can afford. EIF guarantees ease the pressure in the early years of their careers by allowing young Croats to start repayments only when they earn enough to do so. By supporting education in this way, we are investing in a higher quality of life, a sustainable future for Croatia and a Europe that remains competitive, inclusive, and prosperous.“
The total volume of the guarantee fund allocated to Algebra Bernays University exceeds EUR 1 million and can be used to support tuition financing through future income-based contributions, i.e. the Income Share Agreement (ISA), or through deferred payment schemes. Under this mechanism, EIF will cover up to 80% of the default risk of the portfolio of deferred tuition fees. This enables access for talented individuals who might otherwise lack access to traditional financing options.
Other educational institutions across the EU have been included in different InvestEU guarantee programmes, such as Esade Business & Law School and IESE Business School (Spain), as well as technology training centers like Code for All (Portugal), some of which have been directly or indirectly involved in EIF programmes for several years. Income Share Agreements have been in place in Germany since 1995, while income-based repayment models are also used in the United Kingdom, Portugal, Italy, Spain, the United States, and beyond.
At the core of this new form of student financing, now being introduced in Croatia, is the Income Share Agreement (ISA) approach, which enables students to study without upfront financial investment.
Under this model, students begin repayment after graduation, and only after they are employed, contributing a fixed percentage of their gross monthly salary. The maximum repayment period is up to 10 years. This phased approach allows students to transition flexibly to the model best aligned with their future career path. It is important to emphasize that Algebra Bernays University actively conducts candidate assessments, with the primary financing criteria being the evaluation of professional potential and future success, in which the institution maintains a high level of confidence.
“Our agreement and forthcoming participation in the EIF framework arrangement, alongside leading European universities, sends a strong message of trust in our study programmes, faculty, and processes, as well as our commitment to guiding young people, developing them into well-rounded individuals, and supporting them in shaping their careers. We believe in students who consistently pass their exams, in their ability to graduate, secure employment, and build successful careers. That is precisely why we are prepared to offer financing models based on their future success,” stated Mislav Balković, PhD, Associate Professor and Rector of Algebra Bernays University and added: “We see ICT as one of Croatia’s most significant export sectors, which will continue to grow driven by artificial intelligence, cybersecurity, and quantum computing, and will require talented individuals. This programme will enable an even greater number of young people to participate in that development.”
Special emphasis has been placed on IT and digital competencies, areas in which Algebra Bernays University has consistently recorded high graduate employability rates. This financing model further reflects confidence in the continued development of the industry and its sustained growth, as well as the ongoing demand for qualified professionals.
Algebra Bernays University is part of a guarantee agreement covering eight European educational institutions. The period during which students may apply and join the programme runs until 2028. The programme is implemented in cooperation with the European Investment Fund (EIF) and the Spanish consulting firm Quotanda, acting as the servicer and coordinator. Within the broader InvestEU programme, substantial funding has been secured to develop educational models that improve access to higher education and foster the development of labour market-relevant skills.
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The European Investment Bank (ElB) Group is the financing arm of the European Union, owned by the 27 Member States, and one of the largest multilateral development banks in the world. In 2025, the EIB Group signed €100 billion of new financing and advisory services for over 870 high-impact projects in eight core priorities that support EU policy objectives: climate action and the environment, digitalisation and technological innovation, security and defence, territorial cohesion, agriculture and the bioeconomy, social infrastructure, strong global partnerships and the savings and investment union. Beyond long-term loans for large infrastructures, the EIB Group crowds-in private investment for high-risk innovative projects and businesses, with a growing role in Europe’s markets for venture debt, venture capital, guarantees and securitisations.
The European Investment Fund (EIF) is the subsidiary of the EIB Group specialised in providing guarantees and equity to improve access to finance for small and medium-sized businesses and startups across Europe. Acting as an anchor investor, through its extensive network of partnering banks and investment funds, the EIF mobilizes private investment and nurtures the ecosystem of venture capital funds to support innovative European entrepreneurs.
The InvestEU programme seeks to boost crucial investments across Europe in support of the EU’s policy priorities, such as the European Green Deal and the digital transition. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal.
The InvestEU Fund will mobilise at least €372 billion in additional investment by 2027 through an EU budget guarantee of €26.2 billion. The guarantee is used by financial partners to provide long-term financing for public and private sector projects as well as for companies. Investments under the InvestEU programme focus on four policy areas: sustainable infrastructure; research, innovation and digitisation; small and medium-sized businesses; and social investment and skills. The EIB Group is the main implementing partner of the InvestEU Fund and will implement 75% of the EU budget guarantee InvestEU builds on the success of the Investment Plan for Europe and is an effective tool to help face current challenges and invest in the future.
Quotanda is a leading European education finance technology and services firm specializing in student loan origination and servicing. It helps students overcome financial barriers by partnering with educational institutions and foundations to expand access to higher education through the management of deferred tuition programs and income-sharing agreements. By coordinating the EIF-backed guarantee across Europe, Quotanda continues to deliver impactful, inclusive solutions that address the skills gap and contribute to building a brighter future for all.
Algebra Bernays University is a private higher education institution in Croatia focused on applied learning in the fields of technology, business, and creative industries. Through its study programmes and strong collaboration with industry partners, the University aims to equip students with relevant skills aligned with labour market needs. It offers undergraduate, graduate, and postgraduate programmes, including international and dual degree options in cooperation with global partners.
With a growing international presence and more than 2,700 students, Algebra Bernays University places a strong emphasis on innovation, digital transformation, and employability, supported by modern infrastructure and hands-on learning environments. As an academic partner in various international initiatives, the University actively contributes to the development of education models that improve access to knowledge and support lifelong learning.
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