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Yeah, that's your prerogative. Personally, I'd eat some bad press by just making it a policy to always have opt-in changes across the board, or offer dissatisf

Yeah, that's your prerogative. Personally, I'd eat some bad press by just making it a policy to always have opt-in changes across the board, or offer dissatisfied students refunds. And saying "everyone agreed such changes were possible" when you're essentially talking about the fine text of a contract only one side has the opportunity to define the terms of seems questionable. We aren't talking about two sides in a negotiation coming to a meeting of the minds. You created a contract with those terms, on top of an already questionably structured ISA. You can change the contract to make it more explicitly favorable to your students.

austenallred 6y ago
How is the ISA questionably structured?
- FemmeAndroid 6y ago
  See my other thread here about how by not being a progressively structured ISA, you can cause the most harm to students who get the least out of your 'school.' Not to mention your securitizing of ISAs removes the argument for your model that you align your business with the success of your students. But frankly, if the only thing you took out of this post is that the ISA structure is poor, without considering how you have all the power to set and enforce terms in your contract, I don't think I have much else I can say to try and help you. I think there are a lot of ways you can improve Lambda School to make it better for the people attending. And they don't involve deleting Reddit threads of criticism. Edit: s/selling/securitizing
- effingwewt 6y ago
  How is it not This is why I hate you and your product. You come in here and lie through your teeth repeatedly. You sell yoyr ISAs which are already predatory. This means you dont give a flying fuck if students graduate because you get paid regardless, as opposed to the bullshit you spout about incentives being aligned. More softball bullshut or speak answers. Lambda needs to be sued into the groundlike ITT Tech and Hallmark. I for one can't wait.
  - austenallred 6y ago
    In the event we finance an ISA of a student who has not graduated we have to refund what we received if a student doesn't graduate. You are incorrect in your understanding of how ISA financing works. Our interests and incentives remain aligned.
    - catern 6y ago
      >In the event we finance an ISA of a student who has not graduated we have to refund what we received if a student doesn't graduate. Interesting, I didn't know this. I thought you just sold the ISA outright, which would retain some of the incentive but weaken it quite a bit. It's great to hear that that's not happening. I found https://lambdaschool.com/the-commons/announcing-our-new-isa-financing-blueprint-and-100m-in-new-financing https://lambdaschool.com/the-commons/announcing-our-new-isa-... discussing this in more detail. Seems like everyone complaining about Lambda School ISA financing should just read that...
      - austenallred 6y ago
        Right now it's technically structured as a sale to an SPV that is owned by Lambda, Lambda gets a small advance (<$5k/student) that we have to pay back before we get any additional cashflows. It's still completely aligned, we just fast-forward some of the cash so we don't have to raise endless amounts of VC.
        lifteatdev 6y ago
        " Lastly, this arrangement will not affect the student experience during or after Lambda School." As a student, I can confirm this is a lie. And you know it is because we have told you in Slack, we've told you on Twitter, we've told you on Reddit, and now you have to read about it on Hacker News.
        arolihas 6y ago
        It’s interesting that he never responds to current or former students publicly.

austenallred 6y ago

How is the ISA questionably structured?

FemmeAndroid 6y ago
See my other thread here about how by not being a progressively structured ISA, you can cause the most harm to students who get the least out of your 'school.' Not to mention your securitizing of ISAs removes the argument for your model that you align your business with the success of your students. But frankly, if the only thing you took out of this post is that the ISA structure is poor, without considering how you have all the power to set and enforce terms in your contract, I don't think I have much else I can say to try and help you. I think there are a lot of ways you can improve Lambda School to make it better for the people attending. And they don't involve deleting Reddit threads of criticism. Edit: s/selling/securitizing
effingwewt 6y ago
How is it not This is why I hate you and your product. You come in here and lie through your teeth repeatedly. You sell yoyr ISAs which are already predatory. This means you dont give a flying fuck if students graduate because you get paid regardless, as opposed to the bullshit you spout about incentives being aligned. More softball bullshut or speak answers. Lambda needs to be sued into the groundlike ITT Tech and Hallmark. I for one can't wait.
- austenallred 6y ago
  In the event we finance an ISA of a student who has not graduated we have to refund what we received if a student doesn't graduate. You are incorrect in your understanding of how ISA financing works. Our interests and incentives remain aligned.
  - catern 6y ago
    >In the event we finance an ISA of a student who has not graduated we have to refund what we received if a student doesn't graduate. Interesting, I didn't know this. I thought you just sold the ISA outright, which would retain some of the incentive but weaken it quite a bit. It's great to hear that that's not happening. I found https://lambdaschool.com/the-commons/announcing-our-new-isa-financing-blueprint-and-100m-in-new-financing https://lambdaschool.com/the-commons/announcing-our-new-isa-... discussing this in more detail. Seems like everyone complaining about Lambda School ISA financing should just read that...
    - austenallred 6y ago
      Right now it's technically structured as a sale to an SPV that is owned by Lambda, Lambda gets a small advance (<$5k/student) that we have to pay back before we get any additional cashflows. It's still completely aligned, we just fast-forward some of the cash so we don't have to raise endless amounts of VC.
      - lifteatdev 6y ago
        " Lastly, this arrangement will not affect the student experience during or after Lambda School." As a student, I can confirm this is a lie. And you know it is because we have told you in Slack, we've told you on Twitter, we've told you on Reddit, and now you have to read about it on Hacker News.
        arolihas 6y ago
        It’s interesting that he never responds to current or former students publicly.