[sandofsky]

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.

[doctorpangloss]

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.