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Lambda School agrees to end deceptive educational financing practices

dfpi.ca.gov

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Re: Lambda School agrees to end deceptive educational financing practices

#31

Post by nrmitchi »

tedivm wrote: post #24
nrmitchi wrote: post #16

Earlier quoted context omitted.

For what it's worth (I learned this recently and was equally surprised by it) student loans were not non-dischargable until 2005. Ie, for all time before 2005, a student could do what you describe, and as far as I know it wasn't a widespread practice. It is a relatively new thing that really only came in to existance coincidentally around the same time that education became so expensive that going through the effort…

Bankruptcies have to get approved by a judge, and often debt is restructured instead of being discharged. The scenario where someone takes on a bunch of debt then declares bankruptcy on graduation is a joke because judges wouldn't allow it. They may get their loan deferred or restructured to help buy time to get a job, but they wouldn't just discharge it like that. These kind of made up "what if" scenarios to justify…

I may have been unclear and didn't mean to imply there there was a rush of students declaring bankrupcy, thus this law made sense. The law is, in my opinion, stupid.

I was implying that education should never have been allowed to become so unreasonably expensive and unsustainable that it has to be propped up with special exceptions.

Re: Lambda School agrees to end deceptive educational financing practices

#32

Post by mountainriver »

renewiltord wrote: post #5
yawnxyz wrote: post #2

"contains a provision that falsely asserts that the Contract is a “qualified educational loan” ..." Did University of Phoenix qualify for "educational loans"? I'm constantly surprised why this sector gets a pass like this from bankruptcy.

The reason is that the applicants would not be loaned anything if they could discharge debt in bankruptcy. i.e. student loans would not exist unless collateralized and we don't want people to have to put up collateral equal to the value of the loan. This is because if I were a student, the optimal route would be to take the largest loan possible while on no assets, then go to the most expensive university, then decla…

Apparently you can discharge student loans in bankruptcy https://www.npr.org/2020/01/22/797330613/myth-busted-turns-o...

Re: Lambda School agrees to end deceptive educational financing practices

#33

Post by kevinpet »

nrmitchi wrote: post #20
pseudalopex wrote: post #18

Earlier quoted context omitted.

The headline implies the practices were deceptive before they were illegal. It doesn't imply they were breaking the law previously.

I didn't realize the HN headline was different than the linked article, which is "Lambda School Reaches Settlement with DFPI, Agreeing to End Deceptive Educational Financing Practices". "Reaching a settlement" with an enforcement agency implies, at least to me, that you were acused of breaking a law.

Oh sweet summer child...

Re: Lambda School agrees to end deceptive educational financing practices

#34

Post by vineyardmike »

renewiltord wrote: post #27
dhdhhdd wrote: post #17

Earlier quoted context omitted.

And so the education would get cheaper. Nothing drives up prices more than easy access to big loans.

I'm with you. I believe that we need the following reform: * Information Reform: Schools should be required to report median income of graduating class by major by year (with number of declined-to-disclose). Students should know what they're going to get out of this program. * Incentive Alignment: School programs above a certain cost should only be payable either up-front or via income share agreement. Schools should…

> education yielded economic gain for student

What a sad narrow view of education.

I recognize that for many education is a vocational experience meant to provide accesss to better jobs, but really education can be so much more broad and valuable.

Re: Lambda School agrees to end deceptive educational financing practices

#35

Post by wakeywakeywakey »

pradn wrote: post #30
austenallred wrote: post #29

Hey everyone, Pretty excited to reach settlement on this one. The DFPI is a new regulatory agency in California that was tasked with reviewing Lambda School’s new incentive-aligned tuition ( https://lambdaschool.com/tuition/tuition-options ) in California. They came back requesting that we update a bankruptcy provision in the agreement to clarify that these agreements are dischargeable in bankruptcy, and to do a revi…

Your bizarre cheeriness in the face of "Agreeing to End Deceptive Educational Financing Practices" is offputting, especially when coupled with the way college financing has led to generational deadweight, anxiety, and hopelessness.

Reminds me of the 'Human Heater' pitch from the Silicon Valley show [1]

[1]: https://www.youtube.com/watch?v=Di3fPj0pUbQ

Re: Lambda School agrees to end deceptive educational financing practices

#36

Post by pseudalopex »

austenallred wrote: post #29

Hey everyone, Pretty excited to reach settlement on this one. The DFPI is a new regulatory agency in California that was tasked with reviewing Lambda School’s new incentive-aligned tuition ( https://lambdaschool.com/tuition/tuition-options ) in California. They came back requesting that we update a bankruptcy provision in the agreement to clarify that these agreements are dischargeable in bankruptcy, and to do a revi…

They requested you stop making false claims about dischargeability. And about the program being free. Calling the former clarifying is deceptive. So is omitting the latter.

Re: Lambda School agrees to end deceptive educational financing practices

#37

Post by davidw »

pradn wrote: post #30
austenallred wrote: post #29

Hey everyone, Pretty excited to reach settlement on this one. The DFPI is a new regulatory agency in California that was tasked with reviewing Lambda School’s new incentive-aligned tuition ( https://lambdaschool.com/tuition/tuition-options ) in California. They came back requesting that we update a bankruptcy provision in the agreement to clarify that these agreements are dischargeable in bankruptcy, and to do a revi…

Your bizarre cheeriness in the face of "Agreeing to End Deceptive Educational Financing Practices" is offputting, especially when coupled with the way college financing has led to generational deadweight, anxiety, and hopelessness.

What's he supposed to do? Rant about the government? Making the best of it and moving on is probably the best move, since it doesn't sound like a big hit to their business.

Also, it looks like you get out of Lambda School debts via bankruptcy, which you don't with regular college, so that's... an improvement?

Re: Lambda School agrees to end deceptive educational financing practices

#38

Post by rajacombinator »

davidw wrote: post #37
pradn wrote: post #30

Earlier quoted context omitted.

Your bizarre cheeriness in the face of "Agreeing to End Deceptive Educational Financing Practices" is offputting, especially when coupled with the way college financing has led to generational deadweight, anxiety, and hopelessness.

What's he supposed to do? Rant about the government? Making the best of it and moving on is probably the best move, since it doesn't sound like a big hit to their business. Also, it looks like you get out of Lambda School debts via bankruptcy, which you don't with regular college, so that's... an improvement?

Not to mention that Lambda School is an attempt to actually align the incentives of school and students, which is the main problem with educational financing today. Wrong target to pile on.

Re: Lambda School agrees to end deceptive educational financing practices

#39

Post by cactus2093 »

pradn wrote: post #30
austenallred wrote: post #29

Hey everyone, Pretty excited to reach settlement on this one. The DFPI is a new regulatory agency in California that was tasked with reviewing Lambda School’s new incentive-aligned tuition ( https://lambdaschool.com/tuition/tuition-options ) in California. They came back requesting that we update a bankruptcy provision in the agreement to clarify that these agreements are dischargeable in bankruptcy, and to do a revi…

Your bizarre cheeriness in the face of "Agreeing to End Deceptive Educational Financing Practices" is offputting, especially when coupled with the way college financing has led to generational deadweight, anxiety, and hopelessness.

Your bizarre grumpishness is offputting, especially when coupled with the fact that Lambda's model that they're understandably excited about here is aiming to improve on the same broken existing model of college financing that you're complaining about.

Edit: come on, at least comment if you're downvoting. What did I say that is inaccurate?

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