For many, enrolling in a coding bootcamp program can be a good way to access technical training and build in-demand skills that are likely to lead to a high-paying job in the future. While you can find free coding bootcamps and online courses, the cost typically ranges from a few thousand dollars to more than twenty thousand. Luckily, there are coding bootcamp loans, scholarships, and other payment options available to students that need them.
In this guide, we’ll discuss everything you need to know about student loans for coding bootcamps, going over the different kinds of loans and how they work. No matter your credit score, you can get aid for coding bootcamps or find a coding bootcamp stipend or scholarship.
Can I Get a Student Loan for a Coding Bootcamp?
You can get a student loan to pay for your coding bootcamp as long as you meet the eligibility requirements associated with the particular lender. Coding bootcamp loans can be personal, federal, or private student loans. You can also get an income share agreement or deferred payment plan.
You should first make sure you’ve considered all options available to you before applying for a coding bootcamp loan. Are you eligible for any scholarships or grants? Does a program you are interested in offer monthly payment plans without interest rates? By evaluating all of your financial options, you are more likely to find a funding method that is right for you.
Most programs are privately-operated, non-accredited institutions. This means that, on the whole, federal financial aid is usually not available for most bootcamp students, though there are exceptions. Now, let’s discuss each method of paying for coding bootcamp using loans.
Private Loans for Coding Bootcamps
A private loan is money given to a student by a lender to finance their education. These are for-profit businesses that make money on the interest collected on the loans they issue. Because most bootcamps do not qualify for federal student aid and not everyone can pay upfront, private school loans for a bootcamp education have become common—and programs often partner directly with approved lending partners when it comes to loan financing, with some also offering living expenses as well.
However, it’s incredibly important to do your own research to see what private loan provider meets your particular financing needs, and make sure you’re familiar with all of the terms to which you are agreeing. When evaluating private student loans, you should always find out the loan application criteria, the rate of interest offered, what repayment term lengths are available, and whether the loan will cover your tuition adequately. Additionally, you should ensure that you have a way to pay back the loan.
Federal Loans for Coding Bootcamps
Federal student loans for coding bootcamp courses are unusual, as many bootcamps (unlike colleges and universities) do not offer accredited certifications. But some coding bootcamps do offer federal loans.
These methods of financing can give you a lot of support when paying back your coding bootcamp costs. However, as we said earlier, federal financing is not available for most bootcamps. In any case, it is worth researching whether you can get your coding bootcamp tuition covered by federal loans or grants, as the interest rates are usually lower than personal loans.
Personal Loans for Coding Bootcamps
You can also take out a personal loan to pay for some of your coding bootcamp or education costs. This is a good option if you only need to borrow a small amount. However, personal loans are not ideal for larger amounts of money.
Personal loans are not designed to cover education costs. They can come with less-favorable repayment terms than you might see offered by private education loan providers who work with coding bootcamp students. A personal loan for your coding bootcamp should be one of the last options you consider because of the higher interest rates these loans charge.
Other Payment Options for Coding Bootcamps
- Scholarships. Most major coding bootcamps offer scholarship opportunities to help keep their courses accessible to underrepresented groups. Many of these scholarships are aimed at underrepresented communities in tech. Schools that offer scholarships include Coding Dojo, Code Fellows, Flatiron School, General Assembly, and more.
- Tuition discounts. Various schools offer tuition discounts to students who pay upfront, sign up early, or have previously enrolled in short courses offered by the platform. For example, Grand Circus has an early action discount for most of its programs.
- Deferred tuition. If you choose a deferred tuition plan, you won’t pay the cost of your program until after you have graduated and landed a job. As with loans, you likely end up paying more in tuition that you would with other payment programs. You’ll also want to examine all documents and fine print carefully in order to fully understand the exact terms and stipulations of the agreement.
Should I Get a Coding Bootcamp Loan?
You should only get a coding bootcamp loan if you don’t have the personal savings to pay the full cost of the program and are confident that you have a plan for making loan payments, so spend some time on budgeting and financial planning. Before opting into coding bootcamp loans, make sure you’ve considered all your financing options. You’ll also want to research your chosen school to ensure it will provide you with what you need to succeed in new career within the tech industry after graduation.
Although bootcamps are more affordable than traditional degrees, they can still be very expensive. Fortunately, there are many ways to pay for a coding bootcamp. If you’re comfortable with taking out a loan to pay for your education, do your research and see if you can find a loan that works for you based on your financial situation and needs. Always keep in mind that they usually come with interest rates, which means you’ll ultimately pay more than the total tuition amount, as well as a hard credit pull, which can impact your full credit report.
Coding Bootcamp Loans FAQ
A coding bootcamp student loan can be a viable option over personal loans because they tend to have lower interest rates. However, not all students qualify for student loans, so personal loans can be a valid alternative for those who can’t afford tuition payments and who don’t qualify for a student loan. Just be sure to read all terms and conditions carefully before signing onto any agreement.
Can you use 529 for coding bootcamp?
In most cases, you cannot use a 529 plan to pay for a coding bootcamp. You can only use a 529 account if you’re paying tuition to an eligible institution such as a university, as long as students of the bootcamp can access Title IV funding. You should check with the school you are planning to attend whether you can use your 529 plan to finance your education.
Does FAFSA cover coding bootcamps?
You cannot use the FAFSA to finance your coding bootcamp tuition at most schools. However, some schools do offer Title IV funding, which means that you can apply for financing under the FAFSA. You should check with the bootcamp you want to attend to verify if you are eligible for funding through FAFSA.
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