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In theory the ISA should incentivize the bootcamp to work hard on the student's behalf. If they don't get high-paying jobs, the bootcamp doesn't get paid back.

In theory the ISA should incentivize the bootcamp to work hard on the student's behalf. If they don't get high-paying jobs, the bootcamp doesn't get paid back. From what I've read though, they actually bundle the ISAs and sell them off to investors--just like the mortgage-backed securities that led to the 2008 financial crisis. So the bootcamp's real incentive would be to generate as many ISAs to sell as possible, not to make sure the ISAs are any good.

darkerside 6y ago
This is a pretty damning assertion. Got a source? Edit: Found my own. Oof. https://www.google.com/amp/s/www.theverge.com/platform/amp/2020/2/12/21135134/lambda-school-students-edly-isa-debt-swapping-partnership-shares-investors https://www.google.com/amp/s/www.theverge.com/platform/amp/2...
- TheRealDunkirk 6y ago
  > https://www.google.com/amp/s/www.theverge.com/platform/amp/2020/2/12/21135134/lambda-school-students-edly-isa-debt-swapping-partnership-shares-investors https://www.google.com/amp/s/www.theverge.com/platform/amp/2... Two AMP redirects in one link? Sheesh.
nrmitchi 6y ago
When you're selling a securitized asset, you need to show the quality of that asset. You can't just pull together a pile of shit and call it AAA (Yes, 2008 was a thing, and wrong, but lets not assume here that Lambda is borderline to committing fraud). If the ISAs don't perform, then Lambda will (likely) have no future in selling them. Do you really think they're risking their future cash flow in order to bundle up as much bullshit as they can right now?
- gorbachev 6y ago
  > but lets not assume here that Lambda is borderline to committing fraud Why not? They've already been proven to falsify the employment rates of their students. Their marketing material is significantly off from reality. Obviously they could be telling the companies buying the ISAs the truth though.

darkerside 6y ago

This is a pretty damning assertion. Got a source? Edit: Found my own. Oof. https://www.google.com/amp/s/www.theverge.com/platform/amp/2020/2/12/21135134/lambda-school-students-edly-isa-debt-swapping-partnership-shares-investors https://www.google.com/amp/s/www.theverge.com/platform/amp/2...

TheRealDunkirk 6y ago
> https://www.google.com/amp/s/www.theverge.com/platform/amp/2020/2/12/21135134/lambda-school-students-edly-isa-debt-swapping-partnership-shares-investors https://www.google.com/amp/s/www.theverge.com/platform/amp/2... Two AMP redirects in one link? Sheesh.

nrmitchi 6y ago

When you're selling a securitized asset, you need to show the quality of that asset. You can't just pull together a pile of shit and call it AAA (Yes, 2008 was a thing, and wrong, but lets not assume here that Lambda is borderline to committing fraud). If the ISAs don't perform, then Lambda will (likely) have no future in selling them. Do you really think they're risking their future cash flow in order to bundle up as much bullshit as they can right now?

gorbachev 6y ago
> but lets not assume here that Lambda is borderline to committing fraud Why not? They've already been proven to falsify the employment rates of their students. Their marketing material is significantly off from reality. Obviously they could be telling the companies buying the ISAs the truth though.