So you want to learn to code but aren’t sure how you’ll pay the tuition cost? The average cost of a coding bootcamp is $13,584. Paying this amount upfront is not an option for many. Many coding bootcamps have begun to offer more financial options to meet the many budgetary need of students.
A popular option that coding bootcamps offer is the income share agreement, or ISA. This financing contract has become common because it allows students to enroll with little to no money down. However, like any contract, the term can vary from bootcamp to bootcamp and you should do thorough research to ensure this is the best option for you.
This guide will tell you everything you need to know about an ISA so you can better assess your coding bootcamp financing options.
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What is an Income Share Agreement?
An income share agreement (ISA) is a contractual agreement that allows students to pay a certain percentage of their future salary once they meet a certain monthly income threshold for a designated period of time. and students typically remit payment for 1 year to 4 years. Many schools also place a limit on the amount that students will pay, which can help prevent long-term debt.
Key Features of Income Share Agreements:
Deposit: A deposit may be required upon enrollment, depending on the coding bootcamp. These deposits typicaly range from $100 to $3000. Coding bootcamps typically require deposits so bootcamper feel more invested in the program. These are typically non-refundable though some coding bootcamps offer refunds and waived tuition if students are unable to find a job within a specified time and comply with a career service commitment.
Monthly Income Share Percentage: This is the percentage of your gross income that you will pay per month. According to Coure Report, the income shares percentage was between 8% to 25% of coding bootcamp graduate’s salaries in 2020.
Minimum Salary Threshold: Coding bootcamps with ISAs typically don’t require payback until students land a job that meets a minimum income. These minimum incomes typically reflect the expected starting salary of an entry-level bootcamp grad. The minimum salary threshold typically range from $40K-50K.
Payback Terms: This is the maximum amount that you will repay under your ISA terms. The typical repayment cap ranges from 1.5 - 2 times the tuition. You should be wary of coding bootcamps with caps above 2 or those with no payment caps at all, as you may pay far more than the initial tuition amount. In addition, some coding bootcamps also specify a certain amount of time that your ISA contract will be effective. This timeframe can range from 1 year to 8 years.
Are Income Share Agreements Regulated?
Income Share Agreements are mostly unregulated at the federal level and state level, however there have been recent signs of this changing. The California Department of Financial Protection and Innovation recently announced a partnership with Meratas to regulate ISAs, with the hope of creating a clearer pathway to greater regulation in the ISA industry. Additionally, the Consumer Financial Protection Bureau (CFPB) took action in 2021 against an ISA provider for deceptive practices that mislead borrowers.
Is an Income Share Agreement Right For You?
Whether or not an income share agreement is right for you depends on your needs! It’s important to remember that an ISA is just one of many payment and financing options offered by coding bootcamps. An ISA can be a great option for a student who is unable to pay the full tuition amount upfront, nor qualifies for other financial options, such as loans or scholarship. Take your time to research your options and be sure to read your ISA contracts thoroughly before committing.
What Coding Bootcamps Offer Income Share Agreements?
There are a number of bootcamps that offer income share agreements, including:
App Academy
App Academy offers in-person and virtual bootcamps in Software Engineering. These classes can be taken part-time or full-time. In-person classes are offered in New York and San Francisco.
- Deposit: $0 deposit
- Monthly Income Share Percentage: 15%
- Minimum Salary Threshold: $50,000
- Payback Terms: 15% of pre-tax income for 36 months or until your reach the ISA maximum of $31,000, whichever comes first
Bloom Institute of Technology (formerly Lamda School)
Bloom Institute of Technology offers courses in data science, full stack web development, back end development, and web3 development.
- Option One: ISA for 36 payments
- Deposit: $7,950 deposit
- Monthly Income Share Percentage: 14%
- Minimum Salary Threshold: $50,000
- Payback Terms: 14% of pre-tax income for 3 years or until your reach the ISA maximum of $37,950, whichever comes first
- Option Two: ISA for 48 payments
- Deposit: $2,950 deposit
- Monthly Income Share Percentage: 14%
- Minimum Salary Threshold: $50,000
- Payback Terms: 14% of pre-tax income for 4 years or until your reach the ISA maximum of $42,950, whichever comes first
General Assembly
The ISA is available for those enrolled in General Assembly’s full stack development, UX design, or data science immersions.
- Deposit: $250 deposit
- Monthly Income Share Percentage: 10%
- Minimum Salary Threshold: $40,000
- Payback Terms: 10% of pre-tax monthly income for 48 months over a 96-month payment window.
Coding Temple
The ISA is available to students enrolled in Coding Temple’s 10-week, full-time full stack development course.
- Deposit: $0 deposit
- Monthly Income Share Percentage: 12%
- Minimum Salary Threshold: $33,000
- Payback Terms: 12% of monthly income for 36 months with a payment cap of $21,990
Fullstack Academy
Fullstack Academy’s ISA program can be used for their software engineering and cybersecurity bootcamps.
- Deposit: $0 deposit
- Monthly Income Share Percentage: 12%
- Minimum Salary Threshold: $40,000 for web development or $35,000 for cybersecurity.
- Payback Terms: 12% of monthly income for 48 months or pay a total sum equal to $21,990, whichever happens first. There is an 8-year payment window.
- Other Terms: Payments are not required during months when your income is below the minimum income threshold (the deferment months).
Hack Reactor/Galvanize
Galvanize and Hack Reactor offer software engineering and data science bootcamps. These courses are available full-time and part-time, as well as in-person and remote.
- Deposit: $100 deposit
- Monthly Income Share Percentage: 10%
- Minimum Salary Threshold: $60,000
- Payback Terms: 10% of monthly income for 53 months or pay a total sum equal to 1.4x of original tuition financed.
- Other Terms: If you're not earning at least $60k, your ISA pauses and generates no interest.
Holberton School
Holberton School is a software engineering school that offers a project-based learning environment with the goal of teaching students to be software engineers.
- Deposit: $0 deposit
- Monthly Income Share Percentage: 17%
- Minimum Salary Threshold: $40,000
- Payback Terms: 17% of monthly income for 42 months or or until your reach the ISA maximum of $85,000, whichever comes first
- Other Terms: If you do not find a job, or earn a salary under the minimum threshold, your ISA pauses and generates no interest. Students have up to 24 months of deferment to find a job or get above the threshold.
Thinkful
Thinkful offers full-time and part-time bootcamps in Software Engineering, Data Science, Data Analytics, and UX/UI Design.
- Two ISA Options: Thinkful offers a tuition-only income share agreement and an income share agreement with an accompanying living stipend
- Deposit: $0 deposit
- Monthly Income Share Percentage: 15%
- Minimum Salary Threshold: $40,000
- Payback Terms:
- ISA-only: 15% of monthly income over 3 years and a payment cap of $28,000
- ISA with stipend: 15% of monthly income for 4 years and a payment cap of $40,000
- Other Terms: If you do not find a job within 5 years that earns about $40,000, you will not have to repay tuition.
Tech Elevator
Tech Elevator offers an immersive, full stack engineering program in both an in-person and online format.
- Deposit: $2.000 deposit
- Monthly Income Share Percentage: 10%
- Minimum Salary Threshold: $40,000
- Payback Terms: 10% of monthly income for 48 months or until you reach 1.5x the amount of tuition originally financed.
- Other Terms: If you're not earning at least $40k, payments on your ISA pause and no interest accrues.
Other Financial Options
If you’re still unsure about income share agreements, coding bootcamps offer additional financing options to students that you should consider. These include:
Pay Upfront
If you have the means to do so, you can always pay for your bootcamp upfront. Doing so will allow you to be free of debt or payment obligations once you complete your bootcamp.
Personal Loans
Bootcamps often work with industry-leading loan providers, like Climb Credit, to help students access low-interest loans. This option is best for those interested in making smaller monthly payments.
Scholarships
Coding bootcamps often offer scholarships or tuition discounts, especially for those experiencing financial hardship or from underrepresented communities in tech. Examples of coding scholarships available include Black Girls CODE and Women Who Code.
GI Bill or VET TEC Benefit
You can use GI Bill or VET TEC funding to pay for coding bootcamp tuition at approved coding bootcamps.
Employer Sponsorship
If your current employer provides a professional development stipend, you may be able to enroll in a coding bootcamp and be reimbursed by your employer.
Ready to start your coding career?
Are you interested in finding the coding bootcamp that’s right for you? Check out Noble Desktop’s coding bootcamps. You can take in-person classes at Noble’s location in NYC or attend a live online coding bootcamp from anywhere in the world. You can also find other coding bootcamps in your area using Noble Desktop’s Classes Near Me tool.