Deferred Tuition and ISAs: A SwitchUp GuideBy: The SwitchUp Team
There is a modern approach to education funding, where students are able to secure their education and employment before paying tuition. This new system is better known as deferred tuition.
Another similar system, known as an ISA or Income Share Agreement, allow students to pay a set percentage of their salary to their bootcamp once they secure a full-time job. The length of this agreement varies by institution. While ISAs and Deferred Tuition models may sound too good to be true, they can actually be a win-win for both students and schools.
There are several reasons why a deferred tuition or ISA program may be the best fit for your financial situation. If your path to a bootcamp is being hindered by financial roadblocks, this may be your simplest road to success.
Reasons to Pursue ISAs and Deferred Tuition Programs May Include:
- Poor credit
- A high balance on student loans from previous degrees or programs
- A need for money to go elsewhere, including rent, food, other commitments
- If you have a family to support and need to keep schooling separate
- If you are not interested in acquiring loans or debt
- If you do not have a saving account to pay a large sum of upfront costs
Deferred tuition and ISA agreements ensure that schools support student success. Because repayment is dependent on the employment of each bootcamp graduate, schools are incentivized to amp up career services and help their students nail their dream jobs . By easing the pressure of upfront costs, these financing agreements allow students to focus on school and dive deep into their career-track. Plus, it encourages more diversity for each program, opening up admittance to those who may not have their full-tuition available at the onset of the program.
Things to Consider:
Although deferred tuition and ISAs take the pressure off of students initially, they are still a loan of sorts. Often, students will end up paying more for their schooling over time with a deferred tuition or ISA program. You'll want to think carefully about how an ISA or deferred tuition repayment plan will factor into your post-bootcamp expenses. We suggest that students plan out their budget before signing up for these tuition options. Your budget should include things like your expected salary after a bootcamp, living expenses for the area where you expect to work, and your deferred tuition payments. Consider your particular situation carefully before jumping into any of these long-term commitments.
Our Advice? Read the Fine Print:
There are differing regulations around ISAs and deferred tuition in each state. New York has prioritized student protection, ensuring "each student will pay the same amount for the same class." These regulations are focused on anti-discrimination, but are not available everywhere. Read this article if you are interested in how New York State is regulating ISAs and Deferred Tuition.
Other areas of the United States are highly unregulated. Any time you are entering a financial agreement, you should know the details. Are you protected under your agreement? What sort of income is included in your ISA or deferred tuition? Do you have a grace period if you are struggling to find employment? These are all valuable questions to ask before entering into a financial contract, especially one that helps you to secure your future.
Make sure you know your schools requirements. Be sure you are clear on:
- Salary minimum: Do you need to be making a certain amount before you start repayment, or will you be paying a percentage of whatever you earn?
- Do you need to be working in a full-time position, or does the school require repayment at any position, including freelancing?
- Is the repayment a set amount, or a set period of time? This can create major variance in the amount owed. This can also be affected by how many jobs you have in that time period.
- No job: If you do not land a full-time position within a certain period of time, will fees be waived? Some schools have a policy to waive fees, but some schools require you to pay no matter what.
- Deferred tuition vs ISAs: Be clear on which financial payment plan your school is offering, as these terms are not the same.
Deferred Tuition Bootcamps
Access Labs - Powered by Flatiron School
Description: Access Labs, powered by Flatiron School is an outcomes-focused coding bootcamp that offers Full Stack Web Development and Data Science programs on its NYC, Brooklyn, Washington D.C., London and Online campuses.
Location: New York, NY, Washington, D.C., London, UK, Online
The Fine Print: The Access Labs Initiative is designed to be a catapult for economic mobility for students earning less than $35,000 annually and requires no upfront tuition. Only after students have successfully finished the program and accepted a job as a developer will they begin to pay back their tuition.
Location: New York, NY, San Francisco, CA
The Fine Print: App Academy offers a variety of deferred tuition programs including $9000 down and $14000 after job placement for a total of $23,000. Alternatively, they offer $3,000 down and $23,000 after job placement for a total of $26,000.
Grace Hopper Program - Launched by Fullstack Academy
Location: New York, NY Chicago, IL
The Fine Print: This is a deferred-tuition model exclusively for women. The Grace Hopper Program is the nation's first women's coding school to require tuition payment only once a graduate has secured full-time work. In addition to its unique tuition model, the new Grace Hopper Track at Fullstack also offers women-only community-building opportunities within Fullstack Academy's top-of-the-line co-ed learning environment. Students on the Grace Hopper Track pay a $3,000 deposit, then pay back the remainder of their tuition in installments only once they've accepted a full-time offer in their field. Full tuition is $17,610.
Description: Function Camp is a remote (online) Full Stack web & app boot camp that offers deferred tuition, so students only pay once they're earning. Taught by instructors with real-life programming experience, the Function Camp course teaches students how to make websites, apps and 'backends' using some of the latest tech. Upon graduation, students will be able to apply for Full Stack developer roles. Function Camp also offers career support and 1 to 1 coaching. Participants need to have no prior coding experience and have the right to work in the UK.
The Fine Print: Payments are based on income. Once you land a job, you'll be required to pay 10% of your salary towards the loan. If the courses don't work for you, you don't owe a penny. It should be noted that interest on the loan is linked to inflation.
Description: Hackbright Academy offers various programming courses designed to empower women to become Software Engineers. Hackbright Academy teaches the fundamentals of modern web development, then introduces graduates to Silicon Valley companies looking to expand their engineering teams. All students are matched with up to three seasoned software engineers as mentors, as well as given customized career coaching support throughout the program.
Location: San Francisco, CA, San Jose, CA
The Fine Print: If you participate in the Deferred-Tuition Program, you are responsible for the $250 tuition deposit, the $2,899 prepaid deferment fee, and the $16,645 tuition balance. Hackbright requires students to meet eligbility requirements, and maintain that eligibility throughout the program.
Hackbright's deferred tuition option is available to students meeting the following elibility requirements:
- Hold an accredited Bachelor's degree, or completion of 2 years working full time
- Score 5 or higher on Hackbright's admissions technical interview
- Enroll and pay a $250 deposit
- Pay the up-front deferment fee of $2,899 prior to beginning the program
- *Meet ongoing requrements in order to maintain eligibility
Ironhack offers an ISA program that givest students the opportunity to take an Ironhack bootcamp at no cost until they land a job. Payment only begins once students secure a role making at least $40K/year ($3,333.33/month).
Location: Miami, FL
The Fine Print: Ironhack's ISA program is available to individuals who are:
- Incoming Full-time Web Dev and Full-time UX students for cohorts in August or October 2019 at Ironhack Miami's campus in the United States.
- At the time of application are at least 18 years of age on the date of entry.
- A legal resident of the United States.
Once students are deemed eligible, they must complete the following additional application steps in order to be approved:
- Participate in the personal interview with the Ironhack team.
- Take and pass a skills assesment.
- Meet credit check criteria.
- Complete WD or UX pre-work.
Springboard offers deferred tuition programs for their Data Science, Data Analytics, UX, and UI/UX career tracks.
The Fine Print: Through this Deferred Tuition Plan, as long as you follow the course and job search guidance, your tuition payments begin only if you get a job paying $50,000 a year or more. If you stick to the plan, but don’t find a job, the course is free.
Description: General Assembly is creating a global community of individuals empowered to pursue work they love, by offering full-time immersive programs, long-form courses, and classes and workshops on the most relevant skills of the 21st century – from web development and user experience design, to business fundamentals, to data science, to product management and digital marketing.
Location: Washington, D.C.
The Fine Print: For Web Development Immersive at Washington DC campus only. Participants pay 10% percent of their monthly income over 48 months. No payments due if participants make less than $40,000 annually.
Description: Holberton School offers a two-year higher-education program to become a full-stack software engineer. Through project-based and peer learning, Holberton students unleash their creativity and naturally learn how to work as a team to solve practical challenges. The school aims to disrupt education via technology and community.
Location: San Francisco, CA
The Fine Print: Through Venmo Education, Holberton School charges students no upfront costs while they are enrolled in the 2-year program and only begins to collect payments once the student completes the program and begins working. The payments made are income-based payments set at a fixed percentage of the student's salary for 3.5 years. Holberton students pay for their education in relation to their success. There’s no balance increase from interest
Description: Lambda School invests in a small number of ambitious individuals by training them for the world's most in-demand careers. In exchange, Lambda School graduates pay back a small percentage of their salary after they are hired. Thier unique application and interview process is designed to identify those with great aptitude for a technical career, regardless of their background. Once students are selected, a small class undergoes live, intensive online training designed to meet the rigorous demands of their hiring partners. Lambda School is live streamed from Silicon Valley to a small group of students participating from all over the world.
The Fine Print: Lambda School trains people to be software engineers at no up-front cost. Instead of paying tuition up front, students have the ability to pay tuition after graduation through an income share agreement. With Lambda's ISA, students agree to pay a percentage of their income after they're employed, and only if they're making more than $50k per year. If you don't find a job or don't reach that level of income, you'll never pay a cent.
Description: Launch School (formerly Tealeaf Academy) is an online school for developers offering a professional grade curriculum designed to teach students to build production quality apps and become ready for jobs as developers at leading tech companies. Launch School offers students constant support from teachers, teacher assistants, and a community of peers around the world.
The Fine Print: Launch School offers an Income Share Agreement contract where a small downpayment is collected upon enrollment. Once graduated, and employed, students pay us the remainder of their Capstone fee. Lambda can also no-interest loans up to $15,000 to participants who need living assistance while completing the Capstone. Previous Capstone participants have used loans to purchase new laptops, help them relocate, pay rent, purchase groceries, and more. Eligibility requirements include US residency, full-time student status, completion of the program within 18 months, and more.
Description: Mayden Academy is an employer created, commercially designed, intensive training programme for aspiring software developers. Their 16 week course is designed to equip you with knowledge of the fundamentals of coding, software design and project management. You'll contribute to real, commercial development projects using the latest technologies, with the help and guidance of experienced trainers and mentors.
Location: Bath, UK
The Fine Print: Students without the means to pay upfront can delay payment until they start work, paying back 10% of their monthly income at 0% interest rate.
Location: Denver, CO
The Fine Print: Students not qualifying for loans are offered an income share agreement option. Turing's ISA allows students to start with a $5000 payment, with the remaining balance paid upon successful job placement. Interested students must first apply for loans, then contact Turing directly for more information.
Description: V School is Human Centered Edtech headquartered in Salt Lake City, Utah. V School's programs are online and across three continents, both part time and full time. Offering FREE student housing, discounted public transit, a laptop rental program, and creative funding options; including a income share agreements that allows students to start paying back tuition only after they get a job are just a few ways that V School shows their commitment to student success + timely job outcomes.
Location: Salt Lake City, UT, Online
The Fine Print: V School's ISA requires no up front payment, or deposit. Rather, once students secure a job making at least $40,000, their payments begin. Students wishing to learn more about this option are encouraged to full out a form requesting more information here.
Locations: Miami, Santiago, Caracas, and Maracaibo
The Fine Print: Start paying your tuition once you land a job that pays at least $35,000 per year. The ISA payment option is offered to full-time students that meet the following criteria: previous knowledge, background experience, time commitment, interest and goals to find an immediate job in coding. Find more info about the ISA on the 4Geeks Academy blog.