How It Works
Instead of tuition Lambda School of the Bay Area charges a cut of future earnings. They teach information technology skills online, charge zero tuition, and offer stipends to select students.
The deal is that students pay back 17% of their first two years income if the earnings exceed $50,000.00 with a maximum payment of $30,000.00. No job, no pay. Oh, a confident student can pay $20,000.00 in tuition upfront and keep all earnings.
The article says that Purdue University also has such an arrangement. As an IU grad, I will say, “Way to go Purdue.” (Last year Purdue bought Kaplan Education for $1.00 and I still wonder how that is going.)
Placement for Lambda is outstanding, and their mantra is, “If you do not make it, we do not get paid.” As an education company we have a rule concerning passing the State exam after taking our Test Prep Crash Course. Take our course, fail and we will counsel you. Then, you take our course again for free, and if you should fail again, we will refund your fees. We do not get paid unless you pass. And in signing checks every fifteen days, I see very, very, few refunds. Way to go DGE.