How To Get Student Loans for Coding Bootcamp

Most coding bootcamps don’t qualify for federal student aid, so students may need to rely on private career training loans, scholarships, payment plans, or income-share agreements to cover tuition. The right financing option depends on the bootcamp, your financial situation, and how much flexibility you want during repayment. 

Here’s what to know about coding bootcamp student loans and alternative financial aid options. 

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Can you get federal student loans for coding bootcamps?

Federal student aid is generally restricted to accredited colleges and universities that participate in government funding programs. 

“Most coding bootcamps are not eligible for federal student loans, as they are not eligible for Title IV federal student aid,” says Mark Kantrowitz, financial aid expert and author of “How to Appeal for More College Financial Aid.” 

“There was a short-term pilot program through partnerships with traditional colleges, but that ended years ago.” 

How to pay for coding bootcamp

Private student loan options for coding bootcamps

Many private student loan lenders have eligibility requirements that are similar to those for federal loans, making it difficult to qualify unless you're pursuing a formal degree. However, some private lenders are now tailoring loans specifically for coding bootcamps, giving students alternative financing options. Some examples include:

• Ascent student loans
• Sallie Mae's SmartOption Student Loan for Career Training
• Climb

Depending on the lender, you may be able to choose between fixed interest rates that stay the same for the life of the loan or variable interest rates that can change based on market conditions. Like traditional private student loans, the rate you qualify for will depend on your credit score and income.

See Also: How Do Student Loans Work? What To Know Before You Borrow

Scholarships and grants for coding bootcamps

Some coding bootcamps provide scholarships to attract diverse applicants, so you can always look for financial support from the specific program you want to pursue.

While grants are limited, Kantrowitz says you might be able to apply for grants through the Workforce Investment Opportunity Act (WIOA), if the bootcamp is approved as an eligible training provider.

Income-share agreements for coding bootcamps

Income share agreements, or ISAs, are another financing option gaining traction for coding bootcamps. The way they work is you borrow to cover the cost of enrollment, typically from the school, and agree to pay the money back using a percentage of your income for a set period of time.

The main advantage of ISAs is that they don't accrue interest, unlike traditional student loans. However, this doesn't always mean you'll pay less overall. Your total repayment depends on your post-bootcamp salary, and if you enter a high-paying field, you could end up paying more than you would with other financing options.

More strategies to pay for bootcamp

If those options aren't feasible for you, there are some alternative options for financing bootcamp tuition:

• Bootcamp payment plans: Some coding bootcamps like Flatiron School offer payment plans to make tuition costs more manageable. The school works with a third-party lender, EdAid Plan, to offer tuition payment plans.
• Deferred tuition options: You may also be able to take advantage of deferred tuition payments, which allow you to postpone payments until later in exchange for paying principal and interest. For example, App Academy works with Climb Credit so that you can make monthly payments 18 months after starting bootcamp.
• Employer sponsorships and tuition reimbursement programs: Some major tech companies may be willing to sponsor your coding bootcamp tuition if it's a critical and necessary investment in your job. Other companies may have tuition reimbursement programs, which can help finance your coding bootcamp by reimbursing you later.

If you go this route, be aware of the strings attached.

“Employers sometimes provide cost reimbursement if the training is relevant to the employer's business,” Kantrowitz warns. “Typically, such funding requires the employee to agree to continue working for the employer after the training is complete.”

What to consider before borrowing

Attending a coding bootcamp can be an exciting step toward advancing your career, but it's essential to carefully evaluate your financing options before committing. If you plan to take out coding bootcamp student loans or explore other types of financing:

• Evaluate interest rates and total costs: Understand how much you'll pay over the life of the loan.
• Review loan terms and monthly payments: Ensure these payments fit within your budget.
• Assess your career prospects: Consider what you're likely to earn after completing the program and whether those earnings will support your repayment plan.
• Prepare for uncertainties: What's your plan if you struggle to find a job after graduation?

Some financing options come with added protections. For example, App Academy offers “Placement Protection.” Under this program, you may qualify for partial or full tuition forgiveness if you don't secure a full-time job earning at least $50,000 within 36 months of completing the bootcamp.

If you're considering an ISA, make sure you fully understand the agreement, including the percentage of your income that you'll pay, the repayment period, and any maximum payment cap. For example, App Academy requires no payment until you earn at least $50,000 annually. Once you meet that threshold, you'll pay 15% of your monthly income for up to 36 months or until you reach $31,000, whichever comes first.

Keep in mind that this could lead to paying more than the bootcamp's original cost. Carefully weigh the pros and cons, read the fine print, and calculate potential costs to ensure the agreement aligns with your financial goals.

“Anyone who needs a loan or ISA should fully understand the terms: the amount and number of payments, the interest rate and fees, and ensure there isn't a prepayment penalty,” says John Hupalo, author of “Plan and Finance Your Family's College Dreams” and founder and CEO of Invite Education.