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I'm having a hard time thinking of ISAs as much more than a ridiculously high interest loan, especially for those who are self-motivated have a high probability
by l2c1928 7y ago
I'm having a hard time thinking of ISAs as much more than a ridiculously high interest loan, especially for those who are self-motivated have a high probability of landing a job after doing X course.
E.g. Lambda school is $20k if you prepay and maxes out at $30k over 2 years, which is effectively a 45% interest loan. Even if you didn't have the cash (or didn't want to fork out) the cash, a typical loan taken out today will have a single digit interest rate.
Personally I'm completely happy with my federal student loan terms for the $20k or so I have left to pay. I stretched it out to 20 years, pay a 5.5% interest rate, the interest rate is deductible you make below a certain income, and barely think of it outside of doing my taxes.
- toast0 7y agoI have plenty of friends who took out student loans, attended college with me, and ended up dropping out and not having lucrative careers for plenty of reasons. They would have been better served by something like this, since they wouldn't ever have to pay it back. In a way, this is a pessimistic bet, and either way you're a winner. If you don't get a good paying job, you win because you don't have to pay; if you do get a good paying job, you win because you have a good paying job, so it's OK to pay a little more. The details matter though; if the program is really restrictive and everyone who gets funding ends up with a good paying job, the borrowers are being exploited and there's likely an opportunity gap: people who could have done well with the education, but weren't able to access it because the funders risk model wouldn't let them.