The point of Lambda School isn’t just that you only pay after you’re making $x/yr. It’s that Lambda *doesn’t* get paid if you don’t get a great job.
Passing the bill explicitly to taxpayers is perhaps better than the system in the US, but incentives aren’t aligned at all.
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Suppose there are two schools. One only gets paid if you get and keep a great job, the other gets paid no matter what. Which do you suppose will be more interested in your career success?
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In raw $$ is the return/repayment similar? Obviously Lamba is better terms, but practically speaking someone making $50-70K what’s the difference?
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A degree in the UK will cost $50k + interest. The maximum Lambda gets paid (if you’re making $85k+) is $30k total. If you get a job making $50k you only pay Lambda $17k.
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Forgiven at five years — there’s no legal action on your side if the students don’t pay the school back?
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Cool business model. How do you confirm alumni income? Tax forms?
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That’s one of the ways, yes
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Does lambda provide their own financing or do they go through something like Climb?
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We provide it
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Why would taxpayers pay the school on default?
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The reasoning is that it’s a public good.
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In the current model someone has already paid tuition, and it’s not the student. So who ends up footing that bill?
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I m nor defending the practice just putting the reasoning out there.
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Mis aligning of incentives IMO is honestly one of the big problems of applying capitalism to public goods. You’re solving that well. U Phoenix not so much
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The idea that university is a public good needs to be taken out back and shot. Whole generations of UK & US youth waste 4 years learning how to argue theoretical arguments rather than be better, productive members of society.
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To add, in the UK you're only entitled to one undergraduate student loan (I'm simplifying) - so kind of useless for a fundamental later life re-skilling
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Lambda School's model has far more skin-in-the-game than financial institutions & an invested interest in helping the student succeed. Meanwhile creditors providing student loans just want their pound of flesh.
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Are the people saying this from the UK? I am, and I'd say that they are similar in so much that the students are having their education paid for them upfront and that there is some notion of "forgiveness". That's about it. In reality Lambda is radically different.
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