The California
Retail Installment Contract
Tuition for California residents is $30,000. You can choose to pay tuition upfront, pay in installments, or defer tuition until you get a job making $50k or more using a Retail Installment Contract (RIC)*. The RIC allows you to pay your $30,000 Lambda School tuition over time, via payments of 17% of your income.

To be eligible for a RIC, you must be a California resident and a US citizen, permanent resident, or DACA recipient, and have no other active RICs or ISAs.

*Tuition options subject to change.

You can see an example RIC here.
RIC vs ISA – what’s the difference?
A Retail Installment Contract and an Income Share Agreement are both contracts under which you agree to pay 17% of your post-Lambda School salary, but only once you're making more than $50,000 per year (or the equivalent of $4,166.67 per month).

The Lambda School RIC has many of the same student protections as the ISA, including that neither require upfront payments nor accrue interest.
The main difference between an ISA and a RIC is the payment cap. Under an ISA, there are three scenarios in which you would stop paying Lambda School: after making 24 payments, after 60 months of payment deferral, or after reaching the $30,000 cap. Students who sign a RIC will pay the full $30,000 regardless of how many payments it takes.

Retail Installment Contracts are currently available as a form of tuition financing for residents of California.
How RIC payments are calculated
Once you begin making at least $4,166.67 per month (pre-tax), you will be required to begin paying 17% of your gross income earned at a "qualified job" (defined below).

Earned Income does not include:
Income earned by your children or spouse
Any money you inherit
Any money paid to you under certain government programs
You can find more information about what would be considered a "qualified job” in our FAQs below.
How to make your RIC payments
Obtain a qualified position
A “qualified position” means that you work as an employee, independent contractor, or business owner in a field related to software, data science, full-stack web, iOS/Android development, cybersecurity, information technology, UX, or web/app  development or design. If you use skills you learned at Lambda School in your job, it is likely a qualified position. Please contact your RIC servicer if you’re unsure whether your position qualifies.

If you are not earning at least $4,166.67 (pre-tax) in a qualified position, or if you lose your job, your RIC payments will be “deferred,” and you will not owe payments until you are again earning the minimum amount. Unlike the ISA, a RIC does not have an automatic completion date, so you’ll still be responsible for the full amount owed regardless of how long it takes to complete your payment schedule.

Make your monthly payments in your Meratas Portal
RIC payments are due on the 1st of every month after you begin earning at least $50,000 annually in a qualified job. To allow you some time to get situated in your new role, you will have a one-month grace period before your first payment is due. In other words, beginning in the second full month in which your income exceeds $4,166.67, payments of 17% of that monthly income will be owed.

You will make your monthly RIC payments in your Meratas portal, which you’ll have access to after you sign the RIC paperwork. Meratas is a third party provider who handles payment processing for ISAs and RICs on behalf of Lambda School in the United States. You’ll continue making monthly payments until you’ve paid $30k total.

Here are two fictional examples: 
 Audrey graduated from Lambda School on May 15th. On June 5th, she started a job for which she is paid $5,000 a month (pre-tax). In June she was paid $5,000. Due to the payment grace period, the first month in which Audrey must make a RIC payment is August. 
 Tshifhiwa graduated from Lambda School on May 15th. On June 20th he started a job for which he is paid $4,500 a month (pre-tax). However, in June he was paid $2,500 because he started his job part way through the month. The first month for which he must make a RIC payment is August.
Reporting your income to Lambda
The terms of your RIC require you to regularly report your income and employment status to Meratas and Lambda School until you satisfy the terms of your contract. This means you’ll need to provide the name of your employer, job title, and earned income no later than five days after you begin a new job and then every three months thereafter. 

You will also be required to submit your personal tax return to Meratas – this helps us ensure that you are not over- or under-paying toward your RIC. Please note that if you submit a joint tax return, your spouse’s income won’t be considered in the reconciliation process.
Retail Installment Contract (RIC) Questions
What jobs qualify?
“Qualified Position” means work as an employee, independent contractor, or business owner in a field related to, or position requiring knowledge of, one or more of software, data science, full-stack web, iOS/Android development, cybersecurity, information technology, UX, and web and app development and design and any other field or position for which you would not have been qualified, or not have been considered or promoted into, but for your participation in your Lambda School program or the job placement efforts of Lambda School.
How do I calculate how much I need to pay?
The 17% monthly income payment requirement is based on your "Earned Income," which means all you are paid or that you earn in all your qualified positions. Earned income is your gross income—your income before taxes or any other withholdings (including contributions to retirement plans and savings plans).

For example, the US Internal Revenue Service for the 2019 reporting year defines income to include on an annual basis (a) the sum of Line 1 (Wages, salaries, tips, etc.), Line 7a (Other income), and Line 8a (Business income or loss) of IRS Form 1040, as reported or required to be reported on U.S. federal income Tax returns. All of those are examples of “Earned Income.” Earned Income does not include: income earned by your children or spouse (if any); any money you inherit; any amounts paid to you under the Social Security disability insurance program (title II of the Social Security Act) or the Supplemental Security Income program (title XVI of the Social Security Act); any amounts paid to you under the Child Nutrition Act of 1966.

Students are not required to make a monthly payment if their earned income for the previous month is less than $4,166.67 from qualified positions.
What does "deferment " mean and what's the process?
"Deferment" is a period of time when you do not have to pay your RIC installments because you either do not meet the threshold of a qualified job or do not make $4,167.67 or more per month. Students can reach out to their servicer requesting an Industry Specificity Deferment if they believe that their job is not a "Qualified Position". The servicer will ask for supporting documentation such as the job description and pay stubs, etc. 

Once the request has been processed (usually a week or two) the servicer will provide the student with an approval or denial of the deferment.

Is the repayment amount on a RIC calculated before or after taxes?
The 17% is a percentage of your gross income, i.e. before taxes.
What happens to my tuition if I withdraw from Lambda School?
We reduce the total obligation for people who leave Lambda School, based on completion of sprints. A sprint is one week long. The timing for when your tuition and/or RIC may be canceled completely, versus pro-rated, versus fully due may vary by state depending on the rules in your state. Please see your Enrollment Agreement for the most up-to-date information. You can cancel your RIC within the first 5 sprints of your program. 
Can I pay tuition upfront instead of signing a RIC?
Yes, during the admissions process you have the ability to choose from various options on how you would like to pay your tuition. 
When and how do I report my income?
Students are required to keep their servicer account up-to-date with their income and job status at all times. Even if a student is still active in the curriculum, they need to keep their account up-to-date. Students must inform Lambda School of their employment status, including the name of the employer, job title, and earned income, no later than five days after starting work. They must also confirm their earned income every three months, or as requested by Lambda School, thereafter. Each year, there is a tax reconciliation process performed to verify the students' reported income against their filed income tax returns. This is to ensure that students are not over- or underpaying what they owe pursuant to their agreement. Students must submit to Lambda School and/or their servicer the following documentation evidencing their earned income: 

- Before their first monthly payment and every time their earned income increases or decreases, a pay stub, a letter from their employer, independent-contractor agreement, or other evidence of their monthly income. 

- By 30 April each year, a year-end pay stub, form W-2, form 1099, schedule K-1, or other official documentation showing their sources of earned income and the dates of their employment for the previous calendar year.

- If Lambda School requests it, a completed and signed IRS form 4506-T (or any successor form) designating Lambda School as the recipient of their tax return information for returns covering any months for which they are required to make a monthly payment, dated no earlier than 30 days before the date they provide it Lambda School.
Who is Meratas? 
Meratas is a third party provider who services the ISA on behalf of Lambda School in the United States. Meratas is in charge of overseeing origination, payment processing, and identity and bank account verifications. Students can make payments directly through the Meratas online portal.

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