Lambda School is one of the coding schools to have a popular ISA option for students to opt and have a reasonable repayment tenure acceptable for most candidates. The school claims to provide a debt-free education program that helps many students shift into high-paying careers in the tech industry. In this article, we will discuss the Lambda School Cost and ISA.
Cost of Lambda School Programs
The cost of Lambda School’s Course is $30,000. Students can either pay the entire fee upfront or opt for an ISA. An Income Share Agreement depends on the income a student receives after he/she gets placed in a company under a qualified job.
As per Lambda School’s ISA plan, a student has to earn a minimum of $50,000 per year to be eligible to start paying back. The student will pay anywhere between $0 to $30,000 in 24 months as per the agreement. Once the student reaches the payment cap of $30,000 or completes 24 months of repayment, the ISA terminates automatically.
What is an ISA?
An ISA is a method through which students can pay their school tuition. A Lambda School ISA is a contract through which a student agrees to pay 17% of their post-Lambda School salary or 24 months. But, the student only needs to pay once they start making more than $50,000 per year. The ISA has a maximum payment cap of $30,000 under all circumstances.
For Example, If a student opts for ISA and promises to pay back the school, he/she needs to start repaying the school only after he/she gets a job with a predetermined salary, say $50,000 or $100,000 per year.
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Lambda School ISA
If a student is looking to take up the boot camp at Lambda School, they provide Data Science and Web Development courses with a $0 Upfront fee based on ISA. You don’t pay them back until you land a job that pays you higher than $50K per annum. After that, you pay them 17% of your monthly salary for 24 months, with $30,000 being the maximum payment limit.
Key Terms of Lambda School’s ISA Plan
Each school has its own set of terms and conditions that a student choosing ISA should agree with beforehand. This section will discuss some basic principles that a student has to follow to be eligible for the ISA Plan.
Lambda School, with the help of ISA, provides education free of cost. Lambda School’s Web Development and Data Science Programs cost $30,000. The school funds the course fee with the help of the ISA.
The term Income Share defines the percentage of monthly income that the ISA-Recipient agreed to share with the School to repay the course fee. According to Lambda School’s ISA, students can pay 17% of their monthly income to be repaid after graduation.
An annual income is a predetermined amount that both the student and the school agreed upon as a minimum threshold that triggers the repayment cycle. In Lambda School’s ISA, a student who earns a minimum of $50,000 after graduation is eligible to start the repayment of the course fee.
A Payment Cap is a consumer safeguard that limits the amount such that your total payment will not rise beyond a certain threshold. Lambda School’s ISA states that it will automatically terminate once the aggregate repayments reach the maximum payment limit of $30,000.
The minimum number of required payments is 24 Months as per the Lambda School ISA. The ISA states that the student who has opted for an ISA must pay for at least a minimum of 24 months or reach the payment cap if the payments hit the threshold value of $30,000.
The Payment Window is an outer limit on re-payment obligations. Lambda’s ISA recognizes 60 months as the Payment Window, within which the student is obliged to pay the entire amount that he/she has to repay to the school.
Three ways to pay off Lambda’s ISA
A student decides to opt for ISA as he/she finds it a viable option over an educational loan. How does one repay the entire amount, and what are the ways to satisfy the ISA-Repayment?
Well, there are three ways to go about it. Find them below.
Pay for 24 Months
Lambda School ISA requires the student to make 24 monthly payments when they start earning $50,000 or more per annum. Once the student completes all the monthly payments, the ISA terminates automatically.
Paying a total of $30,000
The Payment Cap method is a student benefit option. In this method, the ISA terminates itself once the monthly payment aggregate reaches the payment cap of $30,000. If the student pays the aggregate amount before 36 months, the student need not make any further payment as the ISA terminates itself once it reaches the payment threshold.
Deferred Payment for 60 Months
As per Lambda’s ISA, After 60 months go by after the student’s first-month payment, the agreement terminates automatically, irrespective of how many gains have been made. Whenever a student earns less than $50,000 per year or $4,166 per month, the ISA waives the fee.
At the end of the set Payment Window, the ISA Contract will terminate itself even if the student made less than the required payments and also even if the student paid less than the Course Tuition Fee.
Points to Remember
- Students are responsible for the full amount of their ISA starting after their 16th Week. Lambda School reduces the total obligation for students who leave the school based on the completion of sprints. When a student decides to leave Lambda School, they might want to leave at any point in the course. The student will owe a particular percentage of the ISA depending on the stage they’re withdrawing from the course. For instance, if the student leaves in the first sprint of the course, i.e., within the first four weeks, they have no obligations to pay or zero liabilities. But if a student leaves in the last sprint, i.e., the last four weeks, he/she is responsible for paying 100% of the ISA.
- A student must inform the ISA service provider about any changes in their career. Whether a student drops out of Lambda School or lands a job, he/she is responsible for providing credible documentation provided by the employer to prove that he/she is eligible for repayment of the ISA or not. Students should pass the employment information to the ISA provider whenever they land a new job or every time their income increases or every 30 days, even if their job is outside the tech industry.
- Students from California will not be eligible for ISA. Lambda School was providing ISA for California students in the past. Due to legal complications, they had to retract ISA for California students. However, they offer a Retail Instalment Contract. RIC is a loan plan and works like a regular Education Loan. We do not recommend students to take up RIC, as they would be charged with interest.
Lambda School is one of the few pioneers who ventured into the world of ISA. Primarily, applicants felt stuck when they were obliged to pay a huge amount of money to pay a fee or to take up a loan to learn to code. With the onset of ISA, it was much easier for applicants to transition into tech jobs.
Lambda School was one of the major players who brought these changes in the industry. We recommend our readers to explore the ISA options offered by Lambda School. Meanwhile, before making any decision, we request you to do proper research to understand the circumstances.
As you leave, why don’t you take a look at Lambda School’s ISA Template? Share what you feel in the comment section below.