On Thursday, the California Bureau for Private Postsecondary Education (BPPE) approved Lambda School, a coding bootcamp, to operate in the Golden State. The regulator’s beef with Lambda and other coding bootcamps arose over the model that students use to finance their education: the income-share agreement (ISA). As part of the deal, Lambda will offer a product similar to income-share agreements, but with one major difference that will make the financing tool a worse deal for students.

Unlike a traditional student loan, students who pay for their education using income-share agreements will not pay a fixed amount every month. Instead, they make payments as a certain share of their income for a set period of time. At Lambda, for instance, students who use ISAs will pay 17% of their income until they have paid $30,000 or made two years’ worth of payments, whichever comes first.

BPPE took

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