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I'm not sure I agree with your article. I can think of at least one way to structure an ISA such that incentives aren't aligned. Since it's relatively risk-fre
by yw3410 6y ago
I'm not sure I agree with your article.
I can think of at least one way to structure an ISA such that incentives aren't aligned. Since it's relatively risk-free, the ISA could essentially just optimize for number of students rather than quality.
This already happens in things like recruiting where incentives supposedly align; so I don't think it would be a stretch to apply it to ISA agreements.
It's like the illustrative story of the shaman/psychic who offers to change the lottery odds for you for a cut of the winnings.
What would be interesting is if the ISA /paid/ you a living wage on completion until you found a job.
- fossuser 6y agoI think LS is piloting a program that pays students per month while they attend. Your point about them just scaling up to maximize potential return is a good one - a bad potential outcome I hadn't thought of. Hopefully reputation would provide some counter to that. I think they'd also want to increase the percentage of successful students, I'm not sure scaling up blindly would be the most likely way to get a return. LS style ISAs also have a few parts that make them importantly different. - They cap return to 30k. - They only apply if you get hired in a software role making more than 50k a year. - They're time limited to 10 yrs (even if you don't hit 30k).