Ultimate Guide to Paying for Coding Bootcamp: Loans & Financing

Table of Contents

• 9 Ways to Pay for a Bootcamp:
• 4 Coding Bootcamp Lenders to Research
• What's the Best Payment Option for Bootcamps? Ask yourself these questions: 
• Further Reading + Watching
• What is APR?

Deciding on a coding bootcamp that will propel you into a new career is a huge decision on its own; figuring out how to pay for a bootcamp adds another layer to the search. Coding bootcamp tuition costs around $13,584 on average, and while bootcamp scholarships may help ease the burden, you may need to borrow money to fund your education. In our latest research, we found that 23% of bootcampers are using external loans to cover tuition (that's up from 16% in 2017). Let's compare coding bootcamp loan and financing platforms to help you navigate your options.

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9 Ways to Pay for a Bootcamp:

1. Fund your education yourself using personal savings or with assistance from your family. Many bootcamps offer a tuition discount when a student pays upfront.
2. Apply for a loan from a Bootcamp Lending Partner like Ascent Funding (formerly Skills Fund) and Climb Credit. Some of these loans even cover Living Stipends!
3. Choose a school that offers deferred payment or an income-sharing agreement (ISA). Many bootcamps today offer deferred tuition or ISA plans, which allow students to enroll in the bootcamp and pay for the tuition only once they have landed a job after graduation. As with any loan, make sure to read through all of an ISA or deferred payment plan's terms to evaluate if this is the right choice for you.  
4. If you are a U.S. veteran, use your GI Bill benefits, VET TEC, or VRRAP.
5. Apply for a scholarship – you can read a full list of coding bootcamp scholarships here!
6. Crowd-fund your education. Using crowdfunding sites like Kickstarter and Indigogo, you may be able to crowd-fund your bootcamp tuition. 
7. Get sponsored by your employer. Your current employer may have education funds available for skills development. Stress to your employer that the bootcamp will make you more effective at your job or could help you take on new responsibilities and projects.  
8. Finance through the bootcamp. Many bootcamps offer financing or personalized payment plans. Some bootcamps only require a deposit for starting the program.
9. Apply for a workforce development grant. There are many federal and state-based workforce development grant opportunities for career changers and upskillers that may cover some or all of a bootcamp tuition.

4 Coding Bootcamp Lenders to Research

There are 4 major lenders for coding bootcamps. Remember, these are not student loans, but bootcamp lenders understand the pace of a bootcamp and have favorable terms for bootcampers. 

1. Climb Credit works with over 25 schools, including General Assembly, Devmountain, Springboard, and Code Fellows. Climb offers a 0% interest loan, but APRs on interest-bearing loans range from 5.99% – 30.37%. For 94.52% of Climb  loans, APRs are below 19%.
2. Ascent Funding partners with all the major bootcamps, including Coding Dojo, DigitalCrafts, Fullstack Academy, Tech Elevator, Galvanize, Thinkful, Hackbright Academy.
3. Meritize has partnerships with many bootcamps, such as Ada Developers Academy, Practicum, General Assembly, Spin Career, and more.
4. Quotanda has local partnerships with Ironhack Spain and other Spanish coding bootcamps.

Pave, Earnest, and Upstart were all bootcamp lenders that no longer operate in the space.

What's the Best Payment Option for Bootcamps? Ask yourself these questions: 

Does your dream coding bootcamp have a direct partnership with a lending platform? 

Don't be afraid to ask about lending partnerships when talking to an admissions team. Nearly all coding bootcamps have some kind of relationship with at least one lender. These relationships mean less communication breakdowns, and more work done to ensure that loans are fair and flexible.  

Is it important that the lending partner works with international students? 

For international students, there are some limits because many of the lenders do not offer loans to non-US citizens. Luckily, both Quotanda and Earnest have no restrictions for international students, although Earnest is only available in certain states in the US.

How long will it take you to pay back your loan? 

Think about how long it will take you to pay back your loan once you're employed after graduation. Set a goal for your starting salary and pay attention to terms and interest rates when making your decision. In terms of interest rates, Climb Credit is the lowest at 5%. Most of the other lenders sit somewhere between 6-9%.

Remember that you will likely not be able to start paying your load back until after you graduate. In some cases, a lending partner may offer an interest-only loan. That means students are able to make interest-only payments while in school and for three months after. Three months after graduating, students begin making full payments (tuition + interest).

Can I use a 529 account to pay for a Coding Bootcamp?

If the bootcamp is eligible for Title IV federal student aid, then yes! For example, Kenzie Academy at SNHU. Here's a list of the accredited bootcamps. 

What determines your APR for a bootcamp loan?

According to Climb Credit, a popular lender, actual interest rates vary based on a number of factors, including your state of residence, credit history, and applicable lending laws and regulations.

Further Reading + Watching

For more information, check out our Live Panel Webinar on How to Pay for a Coding Bootcamp, featuring Shannon Burns of Hackbright Academy and Zander Rafael of Climb Credit. You can watch the video below or read the full transcript here. Here's what we cover:

• How to calculate the real cost of a coding bootcamp.
• All of your financial options to fund your career change: scholarships, loans, financing, deferred payment, and more!
• When to get creative to cover your tuition (hint: would your boss actually PAY for your coding bootcamp?)
• Plus, our guests Zander Rafael of Climb Credit and bootcamp alum Shannon Burns answer all of your questions about bootcamp loans and getting creative! 

Every bootcamp student has unique financial needs, and planning ahead will pay off! 

What is APR?

APR stands for "Annual Percentage Rate," and it includes the interest rate as well as additional fees on a loan for a whole year. Keep in mind that different lenders and loans have different APRs — Make sure you find out what the APR is on a loan you are interested in! (If you want to take a closer look at APR, here's a quick guide.)

For more, check out:

• Coding Bootcamp Cost Comparison
• 3 Tips to Crowdfund a Loan
• How to Calculate Your Coding Bootcamp ROI
• Exclusive Coding Bootcamp Scholarships