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A new wrinkle on student debt: Pay-as-you-earn

If a company owns a share in your future income, it has an incentive to train and place you well.

By Tyler Cowen | April 04, 2019 at 12:02 PM
graduate's mortarboard on money The Lambda School teaches information technology skills online, and it charges zero tuition and offers stipends to select students. The deal is that students pay back 17 percent of their income from the first two years of work. (Photo: Fotolia)

(Bloomberg Opinion) –Is it possible to equitize human labor? For years people have talked about the idea of selling shares in one’s own talent, in the hope of attracting funds and assistance from others. Now it seems that this idea is happening at scale, through the Lambda School in California.

The Lambda School teaches information technology skills online, and it charges zero tuition and offers stipends to select students. The deal is that students pay back 17 percent of their income from the first two years of work, if earnings exceed $50,000 a year, with a maximum payment of $30,000.

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