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

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.