While I don’t think Lambda School is good, did they actually ever collect on any students who didn’t get jobs?
It seems kind of important to the premise. These things may have been loans and had a finance charge or whatever. But if you can “default” and nothing happens… what are they really?
The contracts in the early days lasted up to five years, so people who went on to further training (e.g. associates degree at a community college) still owed money even though Lambda School had zero role.
Later, they extended it to eight years and removed the “tech job” stipulation. I read one account a guy owing money who worked as a mailman.
That’s scummy but it sounds like they could have achieved the arrangement “pay a share of your income wherever it comes from” without a loan.
The important part of this is a loan gives you rights as a creditor that an ordinary Accounts Payable does not. Did Lambda School’s creditors ever exercise those rights? If not, how important is the existence of a finance charge or APR or whatever? I mean, if it is only a loan for the purpose of being a product for banks, but functionally is just a, whatever, a payment plan: man, the CFPB is basically complaining about annual billing versus monthly billing discounts, bundling, and any number of psychological tricks. Scummy yes, but dramatic? No.
The peons and peasants with their pesky "anecdotes" don't morally matter to these elite club members. Never believe they're on your side although they're good at making it look like they are.
