
LambdaScam: A Loan by Any Other Name - kevintb
https://crindlisbacher.github.io/2019/07/30/lambdascam.html
======
orangecat
This is unconvincing. He's obsessing over the "interest rate" when that's not
a relevant metric. Unlike real interest, your total cost doesn't increase
without bound; the most you'll ever pay is $30k (and that's if you get a high-
paying job). The question is whether their service is worth up-to-$30k; it may
or may not be, but dividing the maximum post-paid cost by the prepaid cost
doesn't tell you anything useful. If Lambda made the prepaid cost $35k and the
post-paid cost up to $40k, would it become a better deal?

 _Some of the people who don’t get jobs immediately after Lambda School will
attend other schools and bootcamps, take on more debt, and potentially get a
job after that: despite Lambda school not being fully responsible they’ll
still get paid._

Good luck getting out of your student loans because you ended up getting a job
that has nothing to do with what you studied.

 _Tying interest rates to income means tying interest rates to factors like
race, gender, and parental income. This is obviously discriminatory._

In the same way that giving wealthier students less financial aid is
discriminatory.

 _For “riskier” students, the terms of the ISA would be different: maybe
instead of a cap of $30,000 students would be asked to pay a maximum of
$40,000._

"I thought of a bad thing you might do in the future, and that makes you
evil".

