Lambda School Reaches Settlement with DFPI, Agreeing To End Deceptive Educational Financing Practices

The California Department of Financial Protection and Innovation (DFPI) today finalized a settlement with San Francisco-based Lambda, which removes deceptive language from Lambda School's student contracts, clarifying for students that this type of financing can be discharged in a bankruptcy filing. From a report: The language violates the new California Consumer Financial Protection Law (CCFPL), which took effect this year and prohibits companies from engaging in practices that are unlawful, unfair, deceptive, or abusive. As part of the settlement Lambda will (1) notify students that the bankruptcy dischargeability provision language is not accurate; (2) retain a third party to review the terms of the school's finance contract to ensure that it complies with all applicable laws; and (3) undergo a review of its marketing materials to ensure that the information is accurate and not likely to mislead consumers. The settlement is the result of a DFPI investigation that found that Lambda was engaged in conduct that violated the new law. "California has a strong interest in protecting the rights and financial well-being of students attending private postsecondary institutions," said DFPI Commissioner Manuel P. Alvarez. "This action helps ensure that future students can confidently enter into educational financing contracts without being subjected to false or misleading terms."

What about making the banks & schools on the h

[Joe_Dragon]

What about making the banks & schools on the hook for student loan default? say After 5-10 years you can get discharged in a bankruptcy or at the very least let privet loans have no limits on being discharged in a bankruptcy

What about an actually accessible education system

[DrYak]

Or what about instead making an actual education system that doesn't utterly suck?
Making the education financially accessible to everyone?

Giving the possibility that academically competent people can manage to get a degree without need to get into crippling debts that will haunt them for the rest of their lives?

If you fail your grades you get kicked out of the University no matter how much money you pay.
If you have good academic performance you stay in, even if you aren't lucky to have gobs of money at your

Re:

[fermion]

In the US academically qualified means you can get a scholarship. Many students, and I see this multiple times every year, listen to their high school counselors and friends and choose to go to e pensive school that require large loans. If we limited loans to those that got scholarships it might would go a long way to end fraud.

In the US we allow students who are unqualified to cover tuition and other costs for remedial classes. For those who do not know, these are high school, classes often taught by ran

Discharging isn't just for guns.

[Ostracus]

The California Department of Financial Protection and Innovation (DFPI) today finalized a settlement with San Francisco-based Lambda, which removes deceptive language from Lambda School's student contracts, clarifying for students that this type of financing can be discharged in a bankruptcy filing.

I imagine the only thing new is the "tell the students about it" while it's been dischargable all this time.

But meanwhile

[JustAnotherOldGuy]

But meanwhile they've made shitloads of money defrauding people, and apparently they get to keep it. Nothing in the blurb below suggest they'll have to repay a dime:

As part of the settlement Lambda will:
(1) notify students that the bankruptcy dischargeability provision language is not accurate;
(2) retain a third party to review the terms of the school's finance contract
(3) undergo a review of its marketing materials

So, all in all a huge win for the fuckfarts at Lambda.

Re:

[fermion]

What did they do wrong? They entered in an agreement with students where risks are divided and both parties have an incentive to make the education actually effective. The more marketable and skilled the graduate is, the more money will be made by all parties. These are adults, who want a job, and if they wish the students are free to pay upfront.

This school create a illegal clause in the contract. In reality it is the same as every other online school that is really just there to launder student loan mon

Sounds like this is the least they could do

[imidan]

This Lambda place sounds great. Combine the concepts of for-profit education, a "bootcamp" level curriculum, indentured servitude, and the gig economy, and hey presto, you too can live the dream.

Lambda Lambda Lambda

[MooseTick]

When I saw this, I couldn't not think about Lambda Lambda Lambda and Omega Mu.

Yes... I'm old