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Three students sue coding bootcamp Lambda School alleging false advertising and financial shenanigans – TechCrunch


Three students sue coding bootcamp Lambda School alleging false advertising and financial shenanigans
Lambda School has attracted a lot of attention, and raised some $130 million in venture funding from an impressive list of investors, for its novel approach to coding education: offering six-month virtual computer science courses for $30,000, with the option of paying for the courses in installments based on a sliding scale that only kicks in after you land a job that makes at least $50,000.
But it turns out that the startup is attracting a lot of controversy, too. In the latest development, three students have filed lawsuits against the company in California, claiming misleading financial and educational practices. ....

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Tiger Global is betting that more schools are going to share future student earnings – TechCrunch


Tiger Global is betting that more schools are going to share future student earnings
Blair, an operating system for ISAs, raises seed financing
Income-share agreements, or ISAs, are a way to bring flexibility to the often steep financial costs of higher education. The financial model allows a student to learn at zero upfront cost, and then pay any costs through a percentage of future income over time.
While the model has caught fire from a variety of trade schools and bootcamps, it’s a hard service to offer at scale. It required underwriting a risky group of people and that costs money. Just last week, a leader in the ISA space Lambda School laid off 65 employees amid a broader restructuring. ....

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CA DFPI exercises its new enforcement authority against coding school's income-based deferred tuition agreement | Ballard Spahr LLP


The California Department of Financial Protection and Innovation
a consent order with Lambda, Inc., which does business as Lambda School, to settle the DFPI’s claims that a provision in Lambda’s student financing contracts was misleading.  The consent order also resolves the DFPI’s claim that Lambda’s marketing materials were misleading.  The DFPI’s claims were brought under the new
California Consumer Financial Protection Law, which took effect on January 1, 2021 and prohibits providers of financial products and services from engaging in unfair, deceptive, or abusive acts or practices.
According to the consent order, Lambda offers California students the option of financing the cost of attending its online computer coding school through a contract in which the student agrees to pay Lambda a percentage of the student’s future income up to a specified amount (Contract).  (Lambda offers California students the option to defer tuition through ....

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