The dismantling of Lambda School
In 2017, Zoom finally achieved what Skype never could: hosting video calls that didn’t freeze. It was a golden moment to take education online. Enter Lambda School, a Silicon Valley startup founded by Austen Allred with the aim of disrupting higher education. Allred’s idea was simple: people wanted to learn to code but often couldn’t pay $20,000 upfront. His solution? You’d pay nothing until you landed a job earning more than $50,000 a year. At that point, a share of your income would go back to Lambda. But never more than $30,000, and never with interest. The technical term for this is an income share agreement, or ISA, an equity-like stake in a few years of a person’s future income. If you got a good job, the school was repaid. If you didn’t, the school took the loss.
