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Lambda’s ISAs are not incentive aligned for most students. Let’s say the income threshold is 50k. They are not incentive aligned for students who make between

Lambda’s ISAs are not incentive aligned for most students. Let’s say the income threshold is 50k. They are not incentive aligned for students who make between 0-50k. Lambda gets no money. They’re extremely unaligned for students making a little over 50k. The student takes home drastically less money because they hit the threshold. They’re aligned for students making some narrow range above 50k. But once you go above that range they are no longer aligned because lambda is capped out. They are not incentive aligned with most students, incentivizing Lambda to act against the interests of most students, which they have.

gonehome 5y ago
> "They are not incentive aligned for students who make between 0-50k. Lambda gets no money." The are aligned because <50k is a failure for lambda. They're aligned because they need students to make >50k. > "They’re extremely unaligned for students making a little over 50k. The student takes home drastically less money because they hit the threshold." The point of lambda school is to get people decent jobs when they didn't have any good options prior to that. A little over 50k where 14% of salary is paid back is the worst case, but probably still better than before. Definitely better than >50k of debt and no job from tuition costs. > "But once you go above that range they are no longer aligned because lambda is capped out." Good student returns funnel more students into the program. If you can succeed with this at scale it's a big deal. If they can actually teach people to dev vs. just selling a credential there are even more ways to build on this.