Coding Bootcamp Student Loans: Smart Ways to Pay for This College Alternative

Coding bootcamps are immersive, short-term training programs that provide students with coding skills for careers related to web, mobile and software engineering. They can be a fast track to high-paying tech jobs, making them an attractive alternative to a traditional degree.

But coding bootcamps often require a full-time commitment (e.g. 12+ hours a day) and a sizable initial investment, which can make them less accessible to the masses.

Fortunately, they’re becoming more widely accepted as a way to build tech talent and solve the web developer shortage that continues to grow in this digital era.

Here are some coding bootcamp loans and programs to explore, as well as some ways to manage any student debt you might take on to pursue your new coding career.

How much do coding bootcamps cost?

A 2019 Coding Bootcamp Market Size Study by Course Report found that coding bootcamp tuition ranged from free up to $28,000, with the average cost being $13,584 for in-person programs.

Other key findings include:

• Most in-person coding bootcamps are around 12 weeks long, but full-time programs can range anywhere from four to 104 weeks.
• The average online coding bootcamp cost was $12,898 and lasts about 24 weeks.
• Some schools offer alternative tuition opportunities, which might include deferred tuition, income-sharing agreements or employer-sponsorship options.

Tuition costs and course duration aren’t the only bootcamp details that can vary from program to program. Each coding bootcamp offers different digital skill sets, such as full stack web development (e.g. skills that allow you to develop both client and server software) and UX/UI design (e.g. skills that focus on user experience and interface elements).

Additionally, each bootcamp uses a variety of programming languages and frameworks to ensure students are prepared to meet the ever-changing demands of the technology market. Depending on your program, you might be taught using Ruby on Rails, JavaScript, Python, Java, PHP or a number of other popular coding languages.

So, you’ll need to explore your options and find a coding bootcamp that matches your interests, career goals and financial situation.

Can you get a student loan for coding bootcamp?

Many coding bootcamp programs are run by for-profit entities that aren’t usually eligible for federal financial aid opportunities. And not all private student loan lenders are willing to provide loans for nontraditional education or training programs.

But that doesn’t mean you’re totally out of luck. As coding bootcamps have become more popular, more financial institutions — and even the federal government — are taking notice.

Educational Quality through Innovation Partnerships (EQUIP)

The Department of Education launched the EQUIP program to support students pursuing nontraditional paths. This program is designed to allow low-income students to qualify and use different forms of federal financial aid, including grants and student loans for bootcamps.

The EQUIP pilot program created “test sites” that partnered specific coding bootcamps with established universities. But there hasn’t been much progress in creating new partnerships since its inception.

Therefore, federal financial aid opportunities with EQUIP are very limited.

GI Bill benefits for coding bootcamp

Eligible veterans might be able to use their GI Bill benefits to cover the cost of an approved coding bootcamp.

MilitaryBenefits.info maintains an ongoing list of campus, hybrid and online coding bootcamps that accept GI Bill and other military benefits. You can also directly search for your prospective coding bootcamp using the Department of Veterans Affairs (VA) Institution Search tool.

Keep in mind that your coding school might offer scholarship opportunities for veterans, which could prevent you from dipping into your VA benefits.

Private coding bootcamp loans to explore

As we wait for the expansion of federal financial aid opportunities for coding bootcamps, prospective students might need to turn to private student loans to fund their new venture.

However, you might experience some pushback from banks and financial institutions due to the nontraditional nature of coding bootcamps.

Although this could be a potential barrier for you, it can also be viewed as an overall positive. This skepticism can help prevent borrowers from paying for predatory programs that might not deliver on their promises of gaining high-paying jobs after completion.

While a traditional lender might have some hesitation, many online lenders recognize the value of these types of programs. Some lenders directly partner with certain coding schools, giving students a convenient financing solution.

Here are some private lenders that offer coding bootcamp loans in partnership with many of the major coding bootcamps.

• Climb partners with bootcamps like Codesmith and Coding Dojo.
• Skills Fund partners with bootcamps like Bloc, DevMountain, DigitalCrafts and Flatiron School.
• Upstart is a peer-to-peer lending platform that partners with bootcamps like General Assembly, Launch Academy, Starter School, Metis, Code Fellows and Coder Camps.

Your prospective coding school might already have an existing relationship with a lender. So, make sure to check with them first to secure faster funding and take advantage of any partnership agreements.

Coding bootcamp loans typically have shorter terms because bootcamps are much shorter than traditional education options. And they’ll have a higher interest rate than any federal student loan opportunities.

Be sure to compare interest rates, loan terms, borrowing limits and loan fees to ensure you’re getting the best coding bootcamp loan offer for your financial situation. You’ll be required to pay back your coding bootcamp loan regardless of whether you gain employment after graduation.

Managing your coding bootcamp student debt

If you’re able to take advantage of federal student loans for bootcamps, you’ll have a variety of benefits and protections available to you.

For example, federal income-driven repayment plans can help reduce your monthly payment until you’ve secured a higher paying position. You’ll also have access to loan forgiveness programs and forbearance options if you experience a financial hardship.

But if your loans are with a private lender, you won’t have as much flexibility with choosing your repayment strategy. So, you’ll want to explore student loan refinancing options periodically to score a lower interest rate or better loan terms.

Be aware that some refinancing lenders require a degree to qualify. You might have to shop around with multiple lenders to find an offer that your coding bootcamp loan debt is eligible for.

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