Coding bootcamp Lambda School — now BloomTech — is finally getting punished
by Sean Hollister from The Verge - All Posts on (#6M5F3)
Illustration by Alex Castro / The Verge In 2020, we wrote how coding bootcamp Lambda School seemed like a bit of a bait-and-switch. Four years later and one rebranding to BloomTech" later, the US Consumer Financial Protection Bureau (CFPB) is finally slapping it on the wrist - it's permanently banning it from issuing any more student loans, fining the company and its CEO $164,000, and releasing some students from some of their debt.
Why? Among other deceptive practices, the Bloom Institute of Technology" didn't call them loans. It advertised a way for students to get high-paying tech jobs risk free" with no loans" by paying 17 percent of their future income for five years - rather than the $20,000 sticker price of tuition.
But those Income Sharing Agreements (ISAs)...