Choosing a tech bootcamp: 3 of 5
This is the third in a series of five posts about things to consider when you’re choosing a bootcamp. If you haven’t read the first post yet, start there!
In the last post, we talked about the types of support you may need as you’re working towards a new tech career. Today, we continue that topic, with a focus on considerations for financing your bootcamp education, including resources you may need during training.
Additional questions to ask:
(1) Does the bootcamp offer deferred tuition or other helpful financing options and provide clear information about what the bootcamp requires from students in return?
Some bootcamps in NYC offer payment options that ease the burden of up-front payment, such as “deferred tuition” options. These are payment plans that allow a student to pay most of the bootcamp’s tuition after training, once they have landed a tech job. However, many bootcamps do not yet offer this option, so it is important to understand what options a bootcamp has. Ask questions to see if what they offer is right for you. (The Course Report guide to financing also offers guidance about financing options.)
o Deferred tuition: Does the bootcamp offer deferred tuition? If so, what does the bootcamp require from you to qualify for it?
o Job “guarantee”: Does the bootcamp offer a “job guarantee” that says you do not have to pay tuition (or your tuition will be reimbursed) if you don’t land a full-time job as a result of training? If so, what does the bootcamp require from you to qualify for this option? These offers often come with strict requirements about what you will need to do when searching for a job to qualify, so be sure to read the fine print.
o If looking into loans: There are a number of private companies that have partnered with bootcamps to help students pay for training with loans. If you are considering a loan, be sure to look at the loan terms closely. Among other things, you should understand:
— — Expenses vs. income: In general, if you take out a loan, the total cost of your training will be more than the “sticker price” of a bootcamp since you will be paying back that cost, plus interest — and the interest rates for loans can be high. Before you sign up for a loan, you should calculate how much your total monthly payments will be, estimate how much you expect to make in your new tech role, and decide whether you will be able to afford loan payments as part of your overall budget.
If you need help with this, one good place is start is NYC’s Financial Empowerment Center. This center helps New Yorkers with financial planning and may be able to help you think through these decisions.
— — Repayment schedule: Be sure to find out when your first payment will be due. Is it due immediately after training? Would you have a “grace period” with no payments due for a set number of weeks or months after training ends? Remember: it can take months after completing a bootcamp to find a full-time job. It is important to know when your first loan payment would be due — and have a backup plan to make that payment if you haven’t yet started a job.
— — Loan obligations: While bootcamps with deferred tuition options generally let you wait until you get a job to start repayment, in general if you take out a loan you are required to repay that loan no matter what. It is important to be aware of the terms of a loan before taking it on.
(2) Does the bootcamp lend students any equipment or software they may need to complete the program?
o What kind of equipment (for example, any specific hardware or software) does the course require? If you don’t already own the equipment needed, does the bootcamp have any resources they can lend you during the class — including after-hours and during any job-search period after training ends? Many bootcamps do not offer this, but some do.
Head to the next post for types of information you should gather when considering different bootcamps.
About the NYC Tech Talent Pipeline
Mayor Bill de Blasio launched the NYC Tech Talent Pipeline (TTP) in 2014. Managed by the NYC Department of Small Business Services (SBS), TTP is designed to support the inclusive growth of the NYC tech sector by delivering quality jobs for New Yorkers and qualified talent for the City’s businesses. TTP works with 275 companies, 17 local colleges, and additional public and private partners to define employer needs, develop training and education models to meet these needs, and scale solutions throughout the City. TTP delivers quality talent for the City’s businesses and quality jobs for New Yorkers.
For more information, visit techtalentpipeline.nyc/.
