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 26th December 2019

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 boot camp review site. 

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 a probability of finding a job and staying employed are more than any other field. 

Table of contents

What is a Coding Bootcamp?

Coding Bootcamps are not accredited schools. That means they are not even looked after by the government and if you are studying in the coding Bootcamp you are not eligible for federal student loans or pell grants. Before Boot camps are not allowed to get private loans but nowadays many of the lenders started giving loans to the students who are willing to get admission in coding Bootcamp under certain terms and conditions which is further explained.

The average pay for web developers is $66,130, a great increase over the national median salary of $37,040 for all occupations, according to the Bureau of Labor Statistics. The field is also expected to grow faster than other industries, which means your chances of finding a job — and staying employed — are better than if you were in another field.

To become a developer does not require a degree from an expensive or accredited school or advanced training. In fact, many coders start their first jobs with just a high school diploma or a certificate from a coding boot camp.

Deciding on a coding Bootcamp that will propel you into a new career is a huge decision on its own; figuring out how to pay for a Bootcamp adds another layer to the search.

Payment options for attending Bootcamp

If you’re set on attending a coding boot camp — and you can’t pay out of 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.

Apply for scholarships from the boot camp

Most boot camps offer scholarships to students. Many are awarded based on a student’s financial need and each will carry additional requirements.

 Top 5 scholarships for coding bootcamp are mentioned below:

  1. App Academy’s Deposit Assistance Program

  2. Alchemy Code Labs programs

  3. Lebian's Who Tech’s Edie Windsor's Coding Scholarship

  4. Big Nerd Ranch

  5. Bitmakerlab’s Grace Hopper Scholarship For Women In Technology

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, for example, students have the option to defer payment until they get a job with a salary of at least $50,000 a year. But deferring means paying more money overall. At App Academy, students who defer a pay $28,000 after deferment versus paying $17,000 upfront.

General Assembly offers an income-share agreement option it calls a Catalyst. Income-share agreements, or ISAs, offer students funding for schooling in exchange for a percentage of their future income for an agreed-upon period of time. Through Catalyst, General Assembly graduates pay 10% of their income over 48 months. They start paying only once they are hired for a job paying at least $40,000 annually.

Attend a tuition guarantee school

There are some 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.

Take out a private student loan

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, but there are now 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 positive 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.

Research Payment plans 

Some schools offer payment plans for students. Coding boot camps like Bloc allow you to break up your payments over the course of 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.

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 large 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 5 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 boot camp 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.

Check out guaranteed-hire school

Many coding boot camps, such as the Flatiron School, stand by the quality of the programs they offer. They’re so confident that what you learn will be valuable that they offer a tuition-guarantee. If you meet certain 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 effective and you struggle to find a job, you won’t be out thousands

Worried about your college tuition? Learn more about student loans

Advancing your careers

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.