SAN FRANCISCO–(BUSINESS WIRE)–Leif, a fintech company with a proprietary Income Share Agreement platform, announced today that it has partnered with Y Combinator-backed Lambda School, an innovative Silicon Valley-based education company that offers online Computer Science education. The multi-year, exclusive agreement, underwritten by the Student Advantage Fund, will finance the tuition of thousands of students and translates into an estimated revenue contribution of $20m.
“We are thrilled to be able to expand our reach to thousands of people who wouldn’t otherwise be able to afford this type of education,” said Lambda School CEO Austen Allred. “We see applications from thousands of people who are held back from high-paying, highly-skilled careers only because they can’t afford the up-front cost or risk of traditional loans to fund their education. This first-of-its-kind agreement is a watershed moment in education; capable students are beginning to be seen as something to invest in, instead of something to collect fees from. We’re excited to see this alignment of incentives between students, educational institutions, and their financiers.”
Leif provides origination, servicing, and financing solutions for Income Share Agreements. With the increasing cost of post-secondary education and the widely discussed “skills gap” there is a movement to help students gain in-demand skills without burdening them with high-interest debt. Income Share Agreements allow students to pay no up-front costs for their education in exchange for paying a percentage of their income for a fixed period of time once they earn above a minimum salary.
“We are witnessing a historic shift in education funding from debt to equity. The risk is being transferred away from the student, encouraging participation, allowing more people to share in the fruits of the knowledge economy,” said Francis Larson, CEO and Co-Founder of Leif. “We are very selective about schools. If our schools do not put students in a strong position to land high-paying jobs, everyone loses. We believe Lambda is a winning horse in this respect. We believe in their model. They are the future.”
About Lambda School
Lambda School trains people to be software engineers for free, in exchange for a share of their future income. Learn more at lambdaschool.com.
Leif is the platform for the Income Share Agreement market. Leif provides origination, servicing, and financing solutions for income-based payments. Learn more at leif.org.
About Student Advantage Fund
SAF is a NYC-based investment fund that invests in students and provides financing solutions to the schools that educate them. Learn more at saf.fund.