One of the biggest advantages of attending offline or online bootcamps is the low tuition compared to a bachelor’s degree. A programming or coding bootcamp is a cost-effective method to upskill, with tuition fees ranging anywhere between $10,000 to $15,000 for a 2 to 6 month program.
If you’re looking for ways to pay for your desired bootcamp, we’ve got good news for you: many bootcamps and financial institutions offer various flexible ways to borrow that you can choose from.
5 Ways to Get Coding Bootcamp Loans
Here are the five ways to get coding bootcamp loans that will help you navigate the process of financing your education and find the best loan options for your needs.
A disadvantage of trying to raise funds for attending bootcamps is that there is no federal financial aid available since bootcamps are not considered accredited degrees. However, this does not mean that students have to pay the entire tuition upfront.
Many bootcamps tie up with lenders who offer loans to bootcamp students. These loans are financially convenient as they have lower interest rates than most other private loans. Some notable loan providers for bootcamps are Climb Credit, Skills Fund, and Upstart, among others.
Next on the list is earning a scholarship. While most bootcamps offer scholarships that will partially pay the tuition cost, some of them even offer to cover the entire cost of tuition.
These scholarships especially focus on veterans, women, people of color, veterans, or any other category of people who are underrepresented in the tech ecosystem.
3. Deferred Tuition Plans
Some bootcamps let students defer the tuition cost until after they graduate and can find a suitable job in the tech industry that will help them pay off their tuition. Once a bootcamp graduate finds a job that pays a minimum threshold of say, $40,000 and $60,000, they are required to pay back the tuition amount over a fixed period of time.
This timeframe ranges anywhere between 2-4 years. In some cases, students are asked to pay a small deposit upfront as security. It’s important to read the fine print and understand the plan thoroughly before opting for a deferred tuition plan.
4. Income Share Agreements
Income share agreements are similar to deferred tuition plans, with one small but vital difference: with an income share agreement, students are not required to pay any or absolutely minimal amount upfront to sign up for the online bootcamp.
Once the student graduates, they set a percentage of their salary – about 10-25% – which will be paid as monthly installments towards their tuition cost. Usually, there is a minimum salary threshold that a student must meet before they are required to pay. While graduates usually make these payments for 2-4 years, there might be other conditions that come with an income share agreement that students must make note of.
For instance, some bootcamps may require students to accept their first job offer and begin making payments on an immediate basis
5. Employer Tuition Reimbursement
Last on the list is employer tuition reimbursement. Simply put, employer tuition reimbursement (or tuition assistance programs / employee-sponsored scholarships) is a facility provided by your current employer to pay for the cost of your bootcamp tuition.
While many companies offer this scheme, they also expect employees to enroll in programs that help develop skills that match their company’s needs. Moreover, some businesses may require reimbursement recipients to stay employed with their company for a certain period of time after graduation.
Online Bootcamps are a wonderful way to study and grasp in-demand skills so that you can take the next step in your tech career. When enrolling for an online coding bootcamp, don’t forget to carefully analyze these payment options, and weigh their pros and cons to make a well-thought-out decision.