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Why are so many coding boot camps closing really* ? #discussion

r/codingbootcamp

u/ericswc wrote (the comment Michael replied to):

I know that some camps were collateralizing ISA’s as well. Not sure what that cost them but yes point taken normal loan providers have fees too!

u/michaelnovati replied ·
Yeah if the ISA was modeled as a loan "Income Share Loan", then it's modeled similarly. Essentially a loan with a variable interest rate and interest rate cap, that can be paused if you don't have income in a given month. This is the shift that happened after Lambda School got crushed by regulators and the loan providers followed what regulators wanted.