> After the program graduates pay 15% of their income for 2 years if they are earning over $40,000, capped at $30,000 total paid back to Modern Labor.
Something about taking a cut of someone's salary doesn't feel right to me.
If you were to borrow the $10k that they give you, over a 2 year period at a 10% rate (maximum allowed by law in CA), you'd pay a little over $11k. Modern Labor will charge you up to $30k over that same 2 year period, for an interest rate north of 100%.
How is this initial $10k different from a loan? Just because it's coming out of your salary doesn't mean it's not usurious.
Something about taking a cut of someone's salary doesn't feel right to me.
If you were to borrow the $10k that they give you, over a 2 year period at a 10% rate (maximum allowed by law in CA), you'd pay a little over $11k. Modern Labor will charge you up to $30k over that same 2 year period, for an interest rate north of 100%.
How is this initial $10k different from a loan? Just because it's coming out of your salary doesn't mean it's not usurious.