Student Loans for Coding Bootcamp
If you are looking to advance your current skill sets then a Bootcamp is the best option for you. Learn about what a coding Bootcamp is, ways to pay for Bootcamp and how to advance your career.
Updated by Kirtika Acharya on 25th August 2020
If you’re looking for a career in which you expect a handsome amount per month, then learning to code from a Bootcamp is the best option. Coding Bootcamps are short term training programs with big price tags. For a 15-week coding boot camp, you’ll pay an average of $11,906 for in-person programs, according to Course Report, a coding Bootcamp review site. This article acts as a guide to provide student loans for coding Bootcamp.
A Web developer earns an average of $66,130. The national average salary of $37,040 for all occupations, according to the Bureau of Labor Statistics. This is the fastest-growing industry, which means the probability of finding a job and staying employed is more compared to other fields.
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Federal Aid by the Department of education
To become a developer does not require a degree from an expensive or accredited school or advanced training. Many coders start their first jobs with just a high school diploma or a certificate obtained from coding boot camp. Deciding on a coding Bootcamp that will drive you into a new career is a massive decision on its own; figuring out how to pay for a Bootcamp adds another layer to the search.
If you’re going to participate in a coding boot camp — and you are unable to pay from your pocket — here are your payment options:
Attend an EQUIP Pilot Program School
Low-income students could get federal financial aid through a pilot program called Educational Quality through Innovation Partnership or EQUIP. The catch is that there are only eight schools in the program. They’re located in Colorado, Delaware, New Jersey, New York, Oregon, Massachusetts, or Texas.
EQUIP Program offers scholarships, grants, and student loans.
Private Student Loans
If you don’t qualify for federal financial aid, another way to pay for school is to take out a private student loan.
Many traditional banks and financial institutions do not let borrowers take out student loans for non-traditional programs. Still, there are lenders available who cater specifically to coding boot camp students.
Boot camp lenders tend to offer higher interest rates and stricter repayment terms than federal loans, and they’re ineligible for IDR plans. Also, the loans usually only cover the cost of tuition; you’ll have to find other ways to pay for things like living expenses.
If you take out a private loan and cannot find a job after completing the program, you’ll still have to repay the loan. Make sure you research your school’s job placement success rate and are favorable; this is a career you want before applying for a loan.
If you keep those caveats in mind, private student loans can be a useful tool to help you get the education you need to launch your new career. Two boot camp lenders to consider are Pave and the Skills Fund.
Worried about your college tuition? Learn more about student loans
Take out a Personal Loan
If you need money for your coding boot camp, try to move towards personal loans and away from credit cards. Personal loans have lower interest rates and are better for significant expenses. To borrow, you have two main options:
The pay off terms of the traditional loan taken from a bank, credit union, or online is short, typically five years. You need to start paying them off immediately. The interest rates are high for the loan which depends upon the credit score, credit report, and debt-to-income ratio.
Coding Bootcamp loans with personal loan lenders. Private lenders such as Skills Fund and ClimbCredit partner directly with coding boot camps to offer loans to attendees. Compare interest rates and terms to find the best deal. Also, look for deferment and forbearance options, which you might need if you have difficulty repaying.
Loans you can check for Coding Bootcamp
If you don't qualify for private loans as most lenders perform a hard credit check. You can choose a personal loan to complete your studies. Below are few options for lenders who provide personal loans.
Rate of interest
4.99% - 17.99%
5.99% – 16.75%
7.35% – 35.99%
7.99% – 35.97%
Compare loan repayment terms, interest rates, repayment plans before deciding the loan lender.
Other options to consider
If you’ve decided to switch careers, figuring out how to get student loans and pay for school can be challenging. Thankfully, the industry is growing, and more lenders are willing to work with boot camp students.
By doing some research and identifying all of your options, you can find a way to finance your education that fits your needs. And if you’re looking for a reputable coding boot camp.
Attend a tuition guarantee school
There are few coding boot camps, such as The Flatiron School, that offer a full refund on tuition if you don’t get a qualifying job offer within six months of graduating. These are rare, and there may be strings attached. For example, receiving an employment offer could make you ineligible for a refund even if you don’t take the job.
Research Payment Plans
Some schools offer payment plans for students. Coding boot camps like Bloc allow you to break up your payments over several months rather than paying everything at once. Bloc also offers extensions, if needed.
You’ll still have to find the cash on your own, but having more time to pay your tuition bill gives you a chance to save for it.
Consider an income-share agreement or deferred tuition
Some boot camps offer deferred tuition until you get a job or allow you to make an income-share agreement. At App Academy - students have the option to defer payment until they get a job with a salary of at least $50,000 per year. But people deferring means paying more money overall. At App Academy, students who defer a pay of $28,000 after deferment versus paying $17,000 upfront.
General Assembly offers an income-share agreement option; it calls a Catalyst. Income-share agreements, ISAs, offer students funding for schooling in exchange for a percentage of their future income for an agreed-upon period. Through Catalyst, General Assembly graduates pay 10% of their income over 48 months. They start paying only once you are hired for a job, paying at least $40,000 annually.
Check out guaranteed-hire school
Many coding boot camps, like Flatiron School, stand by the quality of the programs they offer. They’re so confident that what you learn will be valuable that they provide a tuition-guarantee. If you meet specific criteria, these schools will repay your tuition fees if you fail to get a job within six months of graduation.
A tuition-guarantee lesser some of the risks of paying for a coding boot camp. You can be confident that if the program is not sufficient and you struggle to find a job, you won’t be out thousands.
Veterans have GI Bill benefits, therefore use your G.I. Bill funds. Coding boot camps accept GI Bill money. Login to the US Department of Veterans Affairs website - to check which coding boot camps qualify.
Check ROI to know the job opportunities. To check for graduation, schools, etc., you can check - https://cirr.org/data
https://www.bls.gov/ooh/computer-and-information-technology/home.htm - offers you details on jobs you can pursue that helps you earn better.