How to Compare Coding Bootcamp Income Share Agreements

Over the past decade, coding bootcamps have risen in prominence as an alternative to traditional computer science collee degree programs. Bootcamps teach students in-demand skills like programming and software engineering.

Many of these programs also focus on helping students find employment after graduation. Since bootcamps typically require less time than a college program, an increasing number of young adults and job switchers have turned to bootcamps to jump-start their careers.

One of the main draws of coding bootcamps for a lot of students is the price. With the average cost of college tuition on the rise, bootcamps may represent a less expensive option. Still, bootcamps often ask for hefty payment —frequently over $10,000 —and they do not offer scholarships or other financial aid to the extent that traditional higher education institutions do.

Bootcamps have largely leaned on alternative financing options to make themselves an attractive option to potential students. For example, income share agreements (ISAs) often allow students to bypass paying any tuition upfront. Instead, graduates pay a set percentage of their income after they complete the bootcamp and find a job.

While this might sound like an appealing option, not all ISAs are created equal. In fact, the majority of ISA programs require students to ultimately pay a considerable amount more than the upfront tuition price. It’s critical that prospective students understand ISA terms before they sign on the dotted line. With that in mind, this guide breaks down exactly what you need to investigate when considering signing up for an ISA.

When determining whether you want to participate in an ISA program, make sure you thoroughly understand and evaluate what the ISA will mean for you. Here are some common factors to look out for:

Make sure you know whether a bootcamp offers a money-back guarantee, and what happens if you can’t find a job or drop out of the program. If a bootcamp doesn’t list this information online, reach out to an admissions representative and ask them yourself.

To gain some insight into how ISAs work in the real world, it can be useful to compare and contrast various deals from different bootcamps. The options provided by the five bootcamps listed below show how much ISAs can vary. Some require graduates to dedicate as little as 9.5% of their salaries to repayment, while others require 17%. Some require graduates to pay for four years, while others require less than two years of monthly payments.

While the examples below provide a small snapshot of how ISAs work, you can read more about how they’re regulated, and how ISA’s differ from deferred tuition plans here. You can also take a look at sample ISA agreements provided by Coding Dojo and Lambda School.

DISCLAIMER: The information provided on this website does not, and is not intended to, constitute professional financial advice; instead, all information, content, and materials available on this site are for general informational purposes only. Readers of this website should contact a professional advisor before making decisions about financial issues.

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