Pesto is working on the ISA model, the income participation agreement. Once engineers are hired, they need 17% of their salary for the next three years. Students must make 36 monthly payments based on their estimated income. These payments are audited annually by tax return and overpayments or underpayments are adjusted accordingly. The agreement also limits payment to INR 20 Lakh, so that no student pays more than that. If a graduate does not double his last salary, he does not have to pay. Given the growing popularity of these agreements, I hope that we will see in India some legislation on MAXIMUM ISA percentages, contract lengths and mandatory payment limits. I think the few current ISA programs are acting in good faith, but others could not come forward with the popularity of this agreement in the future. Personally, I have not read the ISA requirements for all the Indian companies mentioned, so I would advise potential students to go through the agreement and if possible to talk to a lawyer to make sure they know exactly why they are signing up.
I think bootcamp coding is very important to improve future software engineers in the country, but I`m still not convinced that they need an ISA model to work. And in the current context, Lambda School has really popularized Income Share Agreements for bootcamp coding. Lambda School is a 9-month online program that is free until the end. Students participate in the program free of charge and pay 17% of their income after graduation (if they earn more than $50,000) for 2 years. Mr. Musk intervenes. He has heard a lot about Nida`s potential and is a compassionate man, he also understands his situation. But Melon Musk didn`t get to where he is by giving to people. He doesn`t believe in charity. He proposed that Nida sign a legally binding contract with him and that in exchange for the financing, he would promise to pay Mr.
Musk a percentage of his income if she gets a job. So far, he hasn`t been asked for a penny. 😲 Given the hype around bootcamp encoding in the United States and the lack of software engineering personnel around the world, Indian start-ups have also rushed to the ISA model. So there are three parties involved; Students, educational institutions and financial institutions. If a student wants to enrol in demanding and valuable skills that teach at a university and is unable to pay the necessary amount in cash or fees (usually students do not have a guarantee), then the institutions come into place and act as a bridge between the student and the lender and arrange the financing for the same. An institution does so only on the condition that the student, after maintaining a job and a predetermined salary, shares part of the monthly income with the institution to repay the loan. If you want to stop within the first 3 weeks of the program or postpone it to an upcoming program, you are not bound by the income participation agreement and we will follow our own paths. However, you will be charged an administration fee of 10,000 INR for the exit of the ISA agreement. And in the current context, Lambda School really has Popularized Income Share Agreements for bootcamp coding. Lambda School is a 9-month online program that is free until the end. Students participate in the program free of charge and after graduation, they pay 17% of their income (if they earn more than $50,000) for 2 years.
Nida`s first option is to take out a student loan that requires guarantees and proof that she can pay for them one way or another, even if she has no job. Nida doesn`t have it. Even if she did, she knows that student credit is a heavy burden for her, and interest rates will deduct much of their income in the years to come. ☹️ Musk replies that this is the main reason why he chooses a percentage over a plan. The percentage will be 12% for 3 years, which means that a small part of Nida`s income would come to sir.