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Comment by maximilianroos | Hacker News Reader

TBH this article makes me more confident that Lambda is overall Good. They found a single program that was substantially deficient, some disorganized operations, and some exaggerated marketing claims.

It's starting a new form of education! There are going to be operational headaches and a few misses! While the referenced cases aren't good, we can assess Lambda on their overall contribution, not their mistakes alone.

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Lambda School took off PR-wise because their promises made sense on paper.

The reality however is more important, especially when humans are adversely impacted if the promises are broken.

Wait until you see the reality in ordinary schools...

Jason Calacanis's interview with Vincent Woo(the author of that piece) is quite good too: https://www.youtube.com/watch?v=5hUT8VZNvm8

> While the referenced cases aren't good, not their mistakes alone

Check notes: "notify students that the bankruptcy dischargeability provision language is not accurate"

Just to be clear this isn't a "mistake" this is fraud.

IANAL but pretty sure that does not, in fact, qualify as fraud.

yeah sorry, I would bet you are right in the strict legal sense, I guess its a dumb cop out but I meant in the colloquial sense.

I think it probably is fraud, even legally, but only because “qualified education loans” subject to rules against discharge in bankruptcy are also eligible for tax deductions on interest, so while falsely claiming the status was intended as a dissuasion against recourse to bankruptcy for past customers (and not fraud, though clearly unethical, when that’s all the claim serves as), it also was a material misrepresentation which could encourage new customers to purchase services based on it, which is fraud.

Actually, since the loan is structured as an all-principal, no-interest $30,000 loan, deductibility of interest isn’t an issue, so it wouldn’t be classic fraud.

This is not fraud, and it's barely even relevant. The ISA dissolves after 5 years even if you've paid nothing.

The fact that it is dischargeable is itself interesting.

Edit: said the opposite of what I meant

This isn't the ISA; it's a special contract only used for CA-based students that does not allow for a discharge after 5 years.

Interesting, I didn't realize this was the case.

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