Deferred tuition coding bootcamp model should be a textbook example of moral hazard/adverse selection.
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Replying to @akarp
disagree, given the burden of tuition which kicks in whenever you hit 6 figures or whatever the ISA number is, you have an incentive to take a FAANG job and get it out of the way before inflation ratchets it up
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Replying to @jaengelman
I highly doubt that any of the coding boot camps can make a difference in whether someone gets hired by FAANG.
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Replying to @akarp
I agree that's true of most bootcamps, but the ones that give people enough technical skills to think they have a better shot at a startup than a big company might. Interested in
@AustenAllred 's thoughts on this, given you're addressing his business model.2 replies 0 retweets 0 likes -
Replying to @jaengelman @akarp
First there’s a misunderstanding of how the deferred tuition works (at least at Lambda School). Students agree to pay a percentage of adjusted gross income according to tax returns, so we’re fine if they start a company. Agreement lasts up to 5 yrs, you make payments for up to 2
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Replying to @AustenAllred @jaengelman
Well, their company has overwhelming chances of failing, unfortunately. But given the agreement they’ve entered, they now have an extra incentive to pursue that route.
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Replying to @akarp @jaengelman
I think you completely misunderstand the financial tradeoffs most people in that situation are making. Our average student has never made more than $35k/yr. They’re not looking to be cute and arbitrage away tuition. They want a fucking job.
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If you’re in my financial position, or yours? Sure, we’d be hesitant to trade away a percentage of salary for two years (capped at $30k total) once you’re making $50k+. In our students’? They don’t have that luxury.
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As a data point, the average Lambda School student increases his or her income by more than $50k/yr as a result of Lambda School. What they pay us is capped at $30k total. Extrapolate that over 40 working years, and you’re looking at a multi-million dollar swing for <=$30k
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