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Does Lambda School collect a percentage of the Fellow’s wages? Do these Fellows sign a contract with Lambda School? What is the model by which Lambda School mak

by jtdev 6y ago

Does Lambda School collect a percentage of the Fellow’s wages? Do these Fellows sign a contract with Lambda School? What is the model by which Lambda School makes money from this?

mellogarrett 6y ago
By getting Fellows jobs.
jessmartin 6y ago
Lambda School gets paid nothing by the host company and students, as always, don't pay us until they get a job making over $50,000.
- jtdev 6y ago
  > "as always, don't pay us until they get a job making over $50,000" Can you elaborate on this? How do these students pay Lambda School after they've reached > $50,000 (is that $50,000 annual, cumulative, something else?). Once the indentured student reaches this income threshold, what does the compensation to Lambda School look like? Is it a percentage of the student's annual wages? How long does the student remain indebted to Lambda School? Are they required to sign a contract for a minimum term?
  - jessmartin 6y ago
    Sure! This page does a good job of explaining the ISA: https://lambdaschool.com/isa https://lambdaschool.com/isa
- snazz 6y ago
  It's also worth mentioning that Lambda School has sold (or "financed") many of these ISAs to investors, so Lambda gets paid in advance of the student getting paid (even if it's technically a line of credit). It's a nice idea to align the incentives of the school and student, but the current implementation doesn't do that if the school sells/finances ISAs so that they get paid before the student does.
  - brentoken 6y ago
    Thats not exactly how this works, financially speaking. TL:DR the more successful Lambda is with placement, the more they get paid per ISA ("financed" or not). Incentives remain aligned, even if they get paid before the student does. . >It's a nice idea to align the incentives of the school and student, but the current implementation doesn't do that if the school sells/finances ISAs But the current implementation _does_ do that. Debt is always "scored" before being sold off - which factors in to how much the debt ends up being sold for. In this case, the scoring depends on how much gets paid back per ISA, which is subsequently determined by the placement success. Here's a couple of ways this _could_ happen: • If the overall placement % goes up - so more debt (ISA's) is actually paid vs not paid (b/c conditions aren't met) • If the avg. salary per placement increases - so more $ is actually paid per ISA (with respect to the $30k cap) If Lambda can show success in placement, meaning more return is made on each ISA, then the ISA's will be "scored" higher. As to whether or not they are sold upfront - thats a nonfactor to me. If Lambda doesn't do its job training and placing people, they don't make money. Either way this still holds true. Also, all the financing could be happening and student STILL will "not pay any upfront tuition" and "won't pay until they are earning $50k" or more a year - as Lambda advertises.
brudgers 6y ago
The Income Sharing Agreements are here https://drive.google.com/file/d/1wLgwpPYcY5-UsuO0akE3lvVsLlRDRhXC/view https://drive.google.com/file/d/1wLgwpPYcY5-UsuO0akE3lvVsLlR... And here https://leif.org/api/products/5b5b8bd0e59b743f9a086ed9/pdf https://leif.org/api/products/5b5b8bd0e59b743f9a086ed9/pdf Per the Lambda School website.
- jtdev 6y ago
  Yikes! "Your Income Share under this Agreement is 17.00%, subject to adjustment for underreporting or overreporting of Earned Income, as described herein." I think developers need to strongly consider organizing...
  - windixxie 6y ago
    This whole page has people talking about "is this legal" and yet this legitimate legal expectation of reporting your income accurately is being questioned? Interesting.

by jtdev 6y ago

Does Lambda School collect a percentage of the Fellow’s wages? Do these Fellows sign a contract with Lambda School? What is the model by which Lambda School makes money from this?

mellogarrett 6y ago

By getting Fellows jobs.

jessmartin 6y ago

Lambda School gets paid nothing by the host company and students, as always, don't pay us until they get a job making over $50,000.

jtdev 6y ago
> "as always, don't pay us until they get a job making over $50,000" Can you elaborate on this? How do these students pay Lambda School after they've reached > $50,000 (is that $50,000 annual, cumulative, something else?). Once the indentured student reaches this income threshold, what does the compensation to Lambda School look like? Is it a percentage of the student's annual wages? How long does the student remain indebted to Lambda School? Are they required to sign a contract for a minimum term?
- jessmartin 6y ago
  Sure! This page does a good job of explaining the ISA: https://lambdaschool.com/isa https://lambdaschool.com/isa
snazz 6y ago
It's also worth mentioning that Lambda School has sold (or "financed") many of these ISAs to investors, so Lambda gets paid in advance of the student getting paid (even if it's technically a line of credit). It's a nice idea to align the incentives of the school and student, but the current implementation doesn't do that if the school sells/finances ISAs so that they get paid before the student does.
- brentoken 6y ago
  Thats not exactly how this works, financially speaking. TL:DR the more successful Lambda is with placement, the more they get paid per ISA ("financed" or not). Incentives remain aligned, even if they get paid before the student does. . >It's a nice idea to align the incentives of the school and student, but the current implementation doesn't do that if the school sells/finances ISAs But the current implementation _does_ do that. Debt is always "scored" before being sold off - which factors in to how much the debt ends up being sold for. In this case, the scoring depends on how much gets paid back per ISA, which is subsequently determined by the placement success. Here's a couple of ways this _could_ happen: • If the overall placement % goes up - so more debt (ISA's) is actually paid vs not paid (b/c conditions aren't met) • If the avg. salary per placement increases - so more $ is actually paid per ISA (with respect to the $30k cap) If Lambda can show success in placement, meaning more return is made on each ISA, then the ISA's will be "scored" higher. As to whether or not they are sold upfront - thats a nonfactor to me. If Lambda doesn't do its job training and placing people, they don't make money. Either way this still holds true. Also, all the financing could be happening and student STILL will "not pay any upfront tuition" and "won't pay until they are earning $50k" or more a year - as Lambda advertises.

brudgers 6y ago

The Income Sharing Agreements are here https://drive.google.com/file/d/1wLgwpPYcY5-UsuO0akE3lvVsLlRDRhXC/view https://drive.google.com/file/d/1wLgwpPYcY5-UsuO0akE3lvVsLlR... And here https://leif.org/api/products/5b5b8bd0e59b743f9a086ed9/pdf https://leif.org/api/products/5b5b8bd0e59b743f9a086ed9/pdf Per the Lambda School website.

jtdev 6y ago
Yikes! "Your Income Share under this Agreement is 17.00%, subject to adjustment for underreporting or overreporting of Earned Income, as described herein." I think developers need to strongly consider organizing...
- windixxie 6y ago
  This whole page has people talking about "is this legal" and yet this legitimate legal expectation of reporting your income accurately is being questioned? Interesting.