I've thought about the Lambda School model, sure the funding model is good, however the problem is what that funding is being used for. If you could work on the material on your own and hire a TA paid by the hour to grade your assignments, give feedback and provide assistance, basically only pay for the services that you actually need then the cost for a degree would go down massively.

What Lambda School is trying to do right now is just fish for good students and hope they graduate as quickly as possible so they can collect as many ISAs as possible for as little cost as possible.