For investors starved of yield, it was an appealing proposition: a potential 13% return. You just had to be willing to take a flier on the future earnings of 1,000 coders.
That was the payout being targeted late last year for a swath of income-sharing agreements tied to students and recent graduates of coding academy Lambda School, according to a presentation from an online lending platform that specializes in student-loan alternatives. The participants pay no tuition upfront but pledge to remunerate 17% of their incomes for 24 months after landing a job that pays more than $50,000 a year. Repayment is capped at $30,000.