Joining a coding bootcamp is a good way to build in-demand technology skills that are likely to lead to a high-paying job in the future. While you can find free coding bootcamps, according to our 2021 coding bootcamp market study, the average bootcamp program cost $11,727 in 2020. Luckily, there are coding bootcamp loans, scholarships, and other payment options available to students that need them.
In this guide, we are going to discuss everything you need to know about student loans for coding bootcamps. We’ll go over the different kinds of loans and how they work before discussing some of the most popular providers and private lenders. 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 finance your coding bootcamp as long as you meet the eligibility requirements associated with the particular form of financing you are interested in. Coding bootcamp loans can be personal, federal, or private student loans. You can also get an income share agreement.
You should first make sure you have considered all options available to you before applying for a coding bootcamp loan. Are you eligible for any scholarships? Does a program you are interested in offer income share agreements? Keep in mind that some bootcamps offer job guarantees. By evaluating all of your options, you are more likely to find a method of financing that is right for you.
Coding bootcamps are mainly privately-operated, non-accredited institutions. This means that, on the whole, federal funding is not available for most bootcamp students. There are exceptions which we will discuss later in the article, however. 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 to finance their education. This money is given by a private loan provider. These are for-profit businesses that make money on the interest collected on the loans they issue. Private school loans for a bootcamp education are common because most bootcamps do not qualify for federal student aid and not everyone can pay upfront.
Bootcamps often partner directly with approved lending partners when it comes to loan financing. These partnerships can give you reassurance in a private loan provider because the bootcamp will have vetted them. However, you will still need to do your own research to see what private loan provider meets your particular financing needs.
When evaluating private student loans, you should always find out the rate of interest offered on a loan and what repayment terms are available, whether the loan will cover your tuition adequately, and ensure you have a way to pay back the loan. Before you take out a loan, you need to make sure you are familiar with all of the terms to which you are agreeing.
Federal Loans for Coding Bootcamps
Federal student loans for coding bootcamp courses are unusual because most bootcamps do not offer accredited certifications, unlike colleges and universities. But some coding bootcamps do offer federal loans. For instance, Make School lets students access Title IV financing to cover their programs, providing students access to Pell Grants, Direct Federal loans, and Parent PLUS 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 covered by federal loans or grants because the interest rates are usually lower than personal loans.
Personal Loans for Coding Bootcamps
You can 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.
Private Loan Options for Coding Bootcamp Students
If you are wondering where to get a loan for a coding bootcamp, often the place to start is your chosen school’s website. They often have a financing page listing the loan providers they prefer to work with. Below, we provide more information about some of the most popular bootcamp lenders.
Ascent Funding issues loans exclusively for education programs, including bootcamps in areas like coding, UI/UX design, and data science. Ascent Funding offers rates that depend on the school that you attend.
You can get Ascent bootcamp loans for Ascent Funding dozens of schools, such as DevMountain, Fullstack Academy, and Coding Dojo. Another popular loan provider, called Skills Fund, was acquired by Ascent.
Climb Credit is a private loan provider offering services to people who want to pursue training programs such as coding bootcamps. Climb Credit is partnered with General Assembly and 4Geeks Academy, among other schools. Interest rates and terms depend on the exact program you choose to enroll in.
Upstart gives personal loans ranging from $1,000 to $50,000 with various loan terms and Annual Percentage Rates (APR rates). According to its website, Upstart has helped over 2.4 million customers. You can use Upstart loans for coding bootcamps like Hack Reactor, and Hackbright Academy.
Affirm is a private loan provider that allows you to pay off your loan in four interest-free payments or in monthly installments. Historically, students have used Affirm bootcamp student loans at major schools like General Assembly. This is one of the most popular loan providers in the tech industry for bootcamp tuition payments.
Earnest is a private loan provider specializing in education financing products. It looks at your complete financial profile, instead of simply focusing on your credit score. If you use Earnest private loans for your coding bootcamp, interest will begin to accrue on the first day of classes. The interest is calculated at a daily rate.
Quotanda is a lending-as-a-service platform that aims to make education more affordable. It offers payment plans, loans, and income share agreements to bootcamp students. Quotanda has successfully helped students cover tuition at schools like Ironhack Spain and Kodemia.
Pave Credit allows bootcamp students to open up a line of credit, so they can request funds as they need them. A minimum payment is required at the end of each billing cycle. Once the loan is fully repaid, your line of credit will refresh. Pave has partnered with coding bootcamps like Hack Reactor.
Other Payment Options for Coding Bootcamps
- Scholarships. Most major coding bootcamps offer scholarship opportunities to help keep their courses accessible. Many of these scholarships are aimed at underrepresented communities in tech. Schools that offer scholarships include Coding Dojo, Code Fellows, and Flatiron School.
- 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 worth $1,000.
- 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. Schools that offer deferred tuition options for students include Nucamp, Thinkful, and Ironhack. You can also choose this method and opt to attend coding bootcamp while working to save up for tuition at the end of the program.
Should I Get a Coding Bootcamp Loan?
You should get a coding bootcamp loan if you are unable to pay the full cost of the program and are confident that you have a plan for making loan payments. Before considering coding bootcamp loans, make sure you have considered all your financing options. You will also want to research your chosen school to ensure it will provide you with what you need to succeed 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 are 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.
Coding Bootcamp Loans FAQ
You should usually take out a student loan vs an ISA or a personal loan for a bootcamp because they tend to have lower interest rates. However, not all students qualify for student loans, so personal loans can be a valid option. The cost of coding bootcamps can be quite high.
Can you use 529 for coding bootcamp?
You can use 529 plans to pay for some coding bootcamps, such as university coding bootcamps, 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.
Why are coding bootcamps expensive?
Coding bootcamps are expensive due to the amount of knowledge and support that is packed into a short period. In bootcamp, you will work with mentors and instructors who will help you learn the skills you need to pursue a particular tech job. There are also assignments and projects to complete at most bootcamps, which require time for instructors to prepare, issue, and grade. It is helpful to find employer sponsorships, grants, or loans to help you afford this opportunity.
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