The traditional higher education space continues to face increasing competition from technology, most notably MOOCs have taken center stage. Even Harvard Business Review has some thoughts on the future of the MBA and how technology will impact all of education. And I won’t even get into the growing issue of student debt.
A new model I recently heard about from the Hustle Newsletter (a pretty good daily newsletter by the way), is from Lamda School. They offer no upfront costs and only get paid when you did following your graduation and entry into the job market.
So how do they make money? Well the catch is that students have to pay 17% of their income int he first two years following graduation, up to a maximum of 30k.
Seems like a pretty neat model to me and one that is worth a shot. The current system that encourages skyrocketing student loans won’t last forever, and innovative models like this will pave a new course in higher education.