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>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
by 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 agoRight 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 agoIt’s interesting that he never responds to current or former students publicly.