This article explores the student loan options for bootcamps.
- Coding bootcamps are very popular these days, and so are the multiple ways of funding your training
- Common private bootcamp loan lenders are Pave, Earnest, Climb Credit, Ascent, Quotanda, etc.
- Federal Financial Aid, Income Sharing Agreement (ISA), and financial assistance offered by bootcamps are alternative lending options that can help you pay upfront tuition fees.
- Most private bootcamp loan lenders offer to have minimum requirements for loan qualifications, e.g., modest income and short credit history, compared to others like federal financial assistance.
Swapping your current career for another can seem very daunting. This is mainly due to the substantial amount of finance involved in training and education, especially for individuals starting from scratch. Technology is taking a great hold of our lives today, and therefore the need to be well versed with computer skills, in this case, coding.
Unlike the conventional education system, which requires spending tons of cash for a four-year degree, all you need to do these days is enroll in a coding bootcamp. Moreover, because coding bootcamps have become more popular, it’s easy to finance a training program to help you transition into a particular desired computing field easily. Since your focus is on getting into coding, this article will give you the necessary loan options to assist fund your coding bootcamp.
Federal Financial Aid
The US Department of Education launched a pilot program known as EQUIP (Educational Quality through Innovative Partnerships program) back in 2015. The EQUIP initiative program partnered with non-traditional training program providers and 8 universities to lend students financial assistance for non-degree programs. The partnership is mainly to monitor the effectiveness of coding training methods.
Coding bootcamps can have a price tag as high as $20,000. And due to the allure of high-paying jobs in the coding field, many consider this worth the price. According to the DE, the loans aren’t limited to college students alone, and those interested in coding should consider applying for the loans. In fact, more than 90% of coding bootcamp graduates have managed to land various jobs in the computing field. With such a level of success, coding jobs attract more than 16,000 new students annually.
Financial Aid from the bootcamp
For those who cannot afford to pay an upfront tuition fee, many coding bootcamps offer in-house financial assistance. Terms and conditions for such arrangements vary from institution to institution depending on factors like; the total training cost and even the training period. Some bootcamps have also partnered with lenders such as Ascent and Climb Credit which we’ll explore more on later. These lenders disburse the funds directly to the bootcamp institution you’re enrolled in and not into your account.
Income Sharing Agreement (ISA)
The concept of ISA first came into light in 1955, courtesy of Milton Friedman. ISA is a funding option offered by many bootcamps. It basically means that in exchange for payment of your upfront tuition fee, you’ll be sharing a certain percentage of your future income with the ISA provider to repay the outstanding loan. Unlike student loans, ISA is rarely available. Most are usually offered through universities, colleges, and, most importantly, coding bootcamps. Note that ISA isn’t subject to consumer protection law. Plus, they typically have a fixed payment period and don’t accrue interest.
Private Loan Lenders for Coding bootcamp
Students who do not qualify for federal student loans for coding bootcamps should consider private loan lenders. Fortunately, several private loan lenders will gladly give you financial assistance.
The downside of this option is that it requires full-time enrollment as a student in a Title IV institution. People who meet such requirements are usually few. Parties who feel the requirements aren’t favorable should consider applying for Ascent and Upstart loans. Ascent and upstart have made it easier to access loans for coding bootcamp purposes as outlined below:
Ascent
Like most loans, Ascent is an online loan lender that came to the rescue of bootcamp students in 2019 after acquiring another lender called Skills fund. Ascent offers both student and bootcamp loans which differ from one another. Individuals eligible for this loan are;
- DACA (Defied Action for Childhood Arrivals)
- Consignee and non-consignee students
- International students
- Those are struggling to pay for college even without an established credit and even a poor one.
- Career school students
- Coding bootcamps students
Similar to student loans, Ascent is one of the coding bootcamp loans that also cover your living expenses and bootcamp tuition fees.
Remember, Ascent loans are different from bootcamp loans. For instance, Ascent loans offer bootcamp loans requiring a consigner and those that don’t. Individuals applying for an Ascent loan requiring a consigner, then they must meet the minimum credit requirements since such loans are credit-based.
Ascent loans come with three payment options, namely; deferred, interest only, and immediate repayment. On top of that, the loan also guarantees a 3-month grace period. A crucial factor an Ascent loan considers before you get the loan is the credibility of the bootcamp. If the bootcamp you’re enrolled in has a high-quality assurance of delivering high-quality outcomes for its students, your chances of securing the loan are much higher.
Climb Credit
Climb Credit is one of the most sought-after bootcamp loans, especially for students seeking to learn in-demand computing skills. According to Climb Credit’s research, most graduates who receive coding bootcamp loans from their platform experience more than a 70% salary increase after successfully finishing their programs. Climb Credit has some of the most amazing offers, such as prepaying in part, whole, or any time without penalties.
Applying for this loan is relatively easy. Simply visit the Climb Credit Official Website and fill in the relevant information. The whole process takes about 5 minutes. Plus, you can add a consigner since it doesn’t ask for your credit score. Once on the website, you can choose whatever amount you want to borrow for your coding training. Also, depending on your FICO score, you can try out the available interest rates to see how much you’ll pay monthly.
Upstart
Upstart is also a platform that offers financially–strained students interested in coding to raise tuition for coding bootcamps. Eligible loan applicants are those who’ve enrolled in either four of their coding bootcamp programs. Alternatively, loan applicants can also take personal loans to fund their tuition fees.
Enrolling in either of their bootcamp programs and with legitimate proof guarantees high chances of securing a loan without a college degree or any job whatsoever to qualify for the loans. The programs include:
- Launch Academy
- Dev bootcamp
- General Assembly
- Starter School
The platform’s lending method adopts a peer-to-peer system. And so, instead of paying loan interest rates, qualifying applicants can raise funds in their systems and have between 5 and 10 years to repay the whole amount. Candidates eligible for this loan are those with:
- Short Credit History
- Below Average credit score
- Modest income
Upstart uses income models and default predictions to determine whether or not you’re eligible for a loan. Such a model makes it easier even for younger people to acquire personal loans.
Earnest
Like the private lenders above, Earnest also offers bootcamp coding loans. When calculating the loan, Earnest considers factors other than the applicant’s credit score. Since it charges low-interest rates, learners can begin the repayment immediately even while still on the program.
Individuals with a part-time job can immediately start their loan repayment as soon as possible. People with high current or anticipated future income can also apply for this loan. Note the interest rates are pretty solid on their various repayment options. When deciding an applicant’s creditworthiness, Earnest doesn’t accept consigners.
Generally, this private loan lender offers between $5,000 and $75,000, which is to be settled within 3 and 5 years. Earnest loans are meant to be used for purposes like credit card consolidation, tuition, rental apartment, and most importantly, unaccredited programs like coding.
Final Thoughts
Before settling for an option that suits your needs, you must consider your financial situation. Aside from loans, there are numerous other ways of financing your bootcamp coding training. But these loans are the best option for anyone looking to switch careers. Remember, it’s not a total guarantee that you’ll immediately get a job for the skills you’ve trained for. So, to minimize such risks, look for bootcamps with guaranteed job offers in the form of refunds in case a student doesn’t secure a job after graduating.