Boot camps have sprung up over the past decade to meet a desperate need in the market: a means of quickly transitioning into a new, high-quality field. In this they are an unequivocal success.
But their popularity means their services are in high demand, and with high demand comes high prices. Paying for full-time education is never cheap, and boot camps are no exception.
Coincidentally, the same ingenuity that gave rise to boot camps in the first place has also encouraged entrepreneurs to develop financing options.
There are a number of ways to pay for your boot camp education, and here we are going to discuss loans and compare them to income agreements.
Loans for encryption bootcamp
As we all know, a loan is an amount of money that you get up front to finance a project and that has to be repaid with interest at a later date. With regard to coding boot camps, there are two types of loans.
The first is a loan from a traditional financial institution such as a bank or a credit union. In most cases, there’s nothing stopping you from figuring out how much a boot camp costs and approaching Wells Fargo, USBank, or anyone else to see if they’re willing to fund your education.
I see two problems with this approach. The biggest is that many of these standard funds don’t have a solid understanding of boot camps or the value they add to prospective students. Unless your local bank is nice about it, they’ve probably never funded a boot camp participant and have no precedent for setting interest rates, repayment terms, and the like.
The smaller potential problem is that many boot camps have direct partnerships with financial services companies to provide loans to their students. This isn’t so much of a “problem” — to the best of my knowledge, boot camps won’t prohibit you from getting a loan from someone else — it’s just something to keep in mind as you go along in the process.
“ailCFH came into my life when I needed it most and quickly helped me through a boot camp. Two months after graduating, I found my dream job that matched my values and goals in life!”
Venus, Software Engineer at Rockbot
Find Your Boot Camp Match
And speaking of direct partnerships, the second kind of loan comes from the boot camp’s preferred borrower. For example, Galvanize has a special relationship with Ascent Funding for providing student loans. These loans are a little high on interest, but only require small nominal monthly payments for the first half (to give you time to find a job), and have plenty of deferral options.
Loans vs Income Equity Agreements (ISAs) for Boot Camp
Some boot camps offer Income Share Agreements (ISAs) as an alternative way to pay for your education. With an ISA, you don’t owe anything at all until you get a job, after which you agree to give a fraction of your income to the bootcamp, up to a certain maximum amount.
There are many advantages to this way of working. The biggest thing is that you don’t struggle with the burden of high student loans if you end up on the lower end of the pay scale because the amount you owe is tied to your salary.
ISAs vary based on the length of the contract and the fraction of expected income. Make sure you are clear about the ISA terms before committing to them.
Today, there are countless ways to get the money you need to make positive change. That is a fact that should be celebrated.