How to Pay for Coding School

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As technology evolves into a foundational aspect of businesses operating around the world, companies are constantly seeking out qualified tech workers to fill positions. In 2019, CNBC reported more than 700,000 open technology positionsOpens in a new tab. in the U.S. alone from organizations in need of trained and educated employees in cloud computing, artificial intelligence, and analytics. This high number of job openings has motivated some to learn coding as part of their professional skillset. Coding bootcamps can help in starting or bettering an individual’s technology career, positioning them for the growing number of jobs available here and abroad.

A coding bootcamp is a short-term, intensive training program focused on teaching the skills necessary to improve coding abilities. Some coding bootcamps guide students through coursework in web or mobile development or user experience, while others offer curriculum in specific coding languagesOpens in a new tab., such as JavaScript, Ruby on Rails, and HTML/CSS. The average time to completion for coding bootcamp is 14.4 weeks, with a price tag of $13,500 on average. Because of the time and cost involved, paying for bootcamp out of pocket may not be a viable option. Fortunately, financial resources are available to help cover the cost of coding bootcamp for those who want to improve their skillsets. 

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How to Pay for a Coding Bootcamp

Currently, no federal student loans help cover the cost of a short-term coding bootcamp, but private student loans are an option. Other financial resources, including federal aid programs and employer sponsorships can help cover the cost. 

Federal Aid

Although federal student loans aren’t an option for paying for the tuition of coding bootcamps, government programs exist to cover the upfront cost of tuition. First, the Educational Quality through Innovative Partnerships, or EQUIP, program is an initiative developed through the Office of Educational Technology. 

EQUIP is a test program designed to provide low-income students the ability to complete a coding bootcamp and pay for it using federal financial aid. Students must be using federal financial aid for the first time, and be attending a program with a partner university in the EQUIP program to be eligible. The school’s financial aid department can provide information on how to apply for aid to cover the coding bootcamp tuitionOpens in a new tab.. With this financial assistance, students completing a bootcamp have access to the benefits provided by federal student loans, including various repayment programs, deferment and forbearance, and protections under the law.

The GI Bill is a benefit designed specifically for veterans of military service in the U.S., focused on covering the costs of higher education and training. Over the last several years, coding bootcamps have joined the list of eligible training programs to be covered in part or in full by the GI bill. Qualified veterans may receive both tuition and living expenses when attending an eligible coding bootcamp to further their technology skills or lay the groundwork for a new career. Veterans can determine their eligibility for GI Bill educational benefits onlineOpens in a new tab. or by visiting a Veterans service organization. 

Aside from these federal benefits for select groups of students, no other financial aid options exist on the federal level for coding bootcamps.

Private Student Loans

A handful of private student loan lenders offer qualified borrowers financing options for attending a coding bootcamp. Private student loansOpens in a new tab. require a borrower to have a strong credit history and score, as well as verifiable income that may need to meet a minimum threshold. When credit isn’t strong, a co-signer may be added to the loan application to improve the chances of getting approved. 

If you are approved for a private student loan, the lender provides options for how much you can borrow, the repayment terms available, and the fixed or variable interest rate charged on the loan. 

Typical repayment terms for private student loans range from five to 15 years, but because of the low cost of coding bootcamp compared to a full degree program, repayment terms may be limited to one or two years. In addition to understanding the repayment term, borrowers need to recognize that interest is charged on the loan from the day the funds are received. Interest rates can range from the low single digits to nearly double digits, depending on credit score. The higher the interest rate, the higher the total cost of borrowing for coding bootcamp. However, private student loans can be a smart choice for covering the cost of coding bootcamp when other resources are not available. 

Employer Sponsorships

Some employers may help cover the cost of attending a coding bootcamp as well. Because completing intensive training in coding can help benefit both you as the employee and the employer, companies recognize that paying for a coding bootcamp may generate a returnOpens in a new tab. on their investment. Employer sponsorships are not available with every business, nor are they structured the same across the board. Employees may need to work for a company for a certain period before becoming eligible for a sponsorship, or they may need to commit to working for the employer for several months or years after completion to ensure benefits do not need to be repaid. 

Employees can check with their employer to see if sponsorship for coding bootcamp is a possibility, and what the specific terms are for accepting that benefit.

Is Coding Bootcamp Worth It?

Before jumping on the coding bootcamp bandwagon, it’s necessary to understand what the return on investment could be for your career. According to a report on bootcamp graduates, 66 percent reported full-time employment using the skills they learned in coding bootcamp after graduation. The average salary for those with full-time positions came in at just over $67,000 per year. For a $10,000 to $20,000 investment, coding bootcamp may be worth the cost in the end. 

However, those interested in coding bootcamp need to understand their financing options if paying for tuition out-of-pocket isn’t an option. Be sure to select financing that includes flexible repayment terms that fit within your budget, and be selective with the coding school you attend from the start. Completion of coding bootcamp should result in a boost to your skillset and your career prospects in a short period of time after graduation. 

Andy Kearns

Andy Kearns is a Content Analyst for LendEDU and works to produce personal finance content to help educate consumers across the globe. When he’s not writing, you can find Andy cheering on the new and improved Lakers, or somewhere on a beach.

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