Thread by @AustenAllred

Alright, since no one can seem to grasp this:

Yes, there are deferred payment structures in other countries. No, they’re not like Lambda School. At all.

1. Lambda School only gets paid if students get high paying jobs. Schools in UK, Australia get paid upfront no matter what

2. If a Lambda School grad in the US doesn’t get a $50k+ job in the field they studied within 5 years they owe $0 and the agreement goes away. They will never make a payment.

In the UK students make payments for 20-25 years at a minimum when making $27k+regardless of work

3. Lambda School’s income share agreement is not debt, has no balance to be paid, and has no interest.

UK loans accrue interest at a steep rate whether or not students are making payments, and many never touch the principle despite paying many times more than what they borrowed

So:

Scenario 1: School only gets paid if students make $50k+ in the field they studied within 5 years or its $0. No interest.

Scenario 2: School gets paid upfront. Student borrowers make payments when making $27k+ as interest is accumulated, may be forgiven after 20 yrs.

A private school that needs to get its students to a $50k+ job to be paid any tuition at all will act *very* differently than a school that has already been paid by taxpayers.

Incentives matter.