Since the original HN post[0] is about 2.5 years old now, one would expect there to be more data released by LS regarding job placement/salaries before a potential student would sign a $30,000 ISA. I've been a fan of the idea of up-skilling at a bootcamp for those who either don't want to spend 4 years getting a CS degree or being unable to finance its associated costs which can be in excess of $75,000. In an increasingly tight labor market, there's fewer jobs available in the 'middle' where companies seem to be either wanting an experienced SME in a specific domain or less-experienced programmers to do testing rather than development.

I think the bundling and selling of student CDOs works for a company in its early stages, since the costs for recovering unpaid tuition can range from high to being declared a total loss. Some of the anecdotes make it seem like the company doesn't receive enough feedback from employers in order to strengthen parts of their curriculum that make interviewees fail at some stages during the interview process. Creating a complete curriculum takes more than bundling together Leetcode and Hackerrank problems, where the actual teaching reflects that bootcamps and a CS education aren't in direct parity with one another. [1]

Regarding the finances, student loan debt through an established institution can't be removed through filing for bankruptcy. This allows access to federal loans and underwriters that give better rates and agreements for all the business parties invloved. I've been denied refinancing my loans from multiple companies for a combination of those effects including not graduating and having too low of an income. The business seems like a good idea but too fixated on higher short-term valuations in order to attract VC capital; rather than fixing its underlying structural problems.

[0] https://news.ycombinator.com/item?id=15011033

[1] https://hackernoon.com/bootcamps-vs-college-11dd76a4d127