Coming from another career in tech is very challenging and exciting, with unlimited opportunities available for individuals within the field, but getting the right kind of skills to place you in any of those opportunities takes a big investment in time and money. The transition- whether an industry change or a change in skill understanding financing opportunities is as important as understanding anything else throughout this process.
In this article, we discuss the financing options open to tech career-changers so that they can pursue their dreams. While loans, boot camps, and scholarships look promising, they also have their pros and cons. Read on to find out more.
Bootcamp Loans for Tech Education
Finally, boot camps are currently very popular and effective ways to switch to the tech world. They allow intense short-term courses on specific skills: coding, data science, UX design, etc. This can be pricey – up to $7,000 to $20,000 or even more, but it is worth noting that most of the boot camps offer financing through third-party lenders.
With bootcamp loans, you finance your education and pay it back, bit by bit. Many of the bootcamp loans come with flexible repayment schemes, such that you only begin paying after you’ve completed the course and gotten a job in tech. Interest rates and repayment terms vary; therefore, it is advisable that you make some research to find the best deal with a lender.
For example, there are entities like Skills Fund and Climb Credit that especially focus on loan offerings for tech boot camps, competitive interest rates, and terms allowing for deferred repayment. This is ideal for a candidate who needs quick access to funds but only wants to repay when they get a high-paying tech job.
Income Share Agreements (ISA)
Another highly popular source of funding for career changers entering the tech industry is an Income Share Agreement (ISA). With an ISA, you don’t pay anything upfront for your education. Instead, after graduation, you’ll agree to pay a percentage of your salary for a specified period.
ISAs could be useful in that you would have reduced financial risk. If you fail to get a job that has at least a minimum salary, then you will not be required to pay for it. Besides, ISAs usually come with some form of limit or cap on the amount to be paid. In this regard, you will never have to pay over a fixed amount, no matter how your salary might increase in the future.
“General Assembly offers accessible financing for tech career-changers, including Income Share Agreements (ISAs) that allow students to pay only after landing a job. As Chris Humphrey, SEO Manager at General Assembly, notes, this option helps students focus on gaining skills without upfront costs, making tech education more attainable.”
ISAs are becoming very popular among coding camps where would-be tech professionals can focus on learning rather than dwelling on pressing money worries.
Employer Sponsorship and Tuition Reimbursement
Many companies today appreciate the value of investing in their employees’ professional development, especially in today’s rapidly changing environment in the technology sector.ย Some employers go a step further by offering sponsorship or tuition reimbursement to employees interested in taking programs related to technology.
Check your current employer for something like this. A great many employers offer them, especially if what you’ll be learning lines up with your job today or what you’ll do at the company in the future. Some companies will even pay for a tech course of study and then reimburse you after its completion-meaning the education is paid for.
But employer sponsorship is also great and requires that you clear the terms of agreements before getting tied into them. Companies may ask you to stay with them for a certain period after you graduate or even repay some part of the funds spent on you.
Scholarships and Grants for Tech Bootcamps
Many boot camps and tech schools provide scholarships and grants to make it accessible to career changers. Most scholarships will target diversity in tech and support underrepresented groups or women, minorities, veterans, and so forth.
One example of boot camps that offer diversity scholarships is Flatiron School and General Assembly. For those who are passionate about the tech industry but cannot afford to pay for a bootcamp, there is room for people who offer diversity. Others are merit-based and cater to people with strong academic or professional backgrounds.
Grants and scholarships are often a good choice as these don’t have to be repaid. However, even grants and scholarships can be competitive, so the sooner you apply the better; especially an application that is very compelling about passion and potential in tech.
Government Loans and Programs
Conversely, applicants who prefer old paths may apply for government-backed loans and programs. For any individual looking to pursue a degree in any field of technology in an accredited institution, you can achieve your dream through FAFSA or government-backed loans.
And while most boot camps are not covered via federal loans, many of the tech education opportunities that can be found at a community college or university would qualify. Federal loans typically have lower interest rates and offer more flexibility regarding repayment of the loan. They also make available other income-driven repayment plans and loan forgiveness options.
Apart from student loans, the U.S. government also gives grants under the Workforce Innovation and Opportunity Act (WIOA). WIOA grants are issued by state governments to train individuals for high-demand jobs in such tech-heavy industries. WIOA grants can be used towards some eligible training programs, including some tech boot camps, which can be helpful for someone changing careers and needing grants to pay for it.
Balance of learning while working
Perhaps part-time learning is more suitable for individuals who cannot afford to quit their job while studying and building a career in tech. Many online learning platforms offer flexible schedules that favor working during the day and studying at night or over weekends.
While this model requires so much time management, it could ease financial stress. It allows you to self-fund your tech education without loans and sometimes financial aid. This option also gives you much leeway in order to pay as you go; there are fewer chances of debt accumulation.
Online courses such as those offered on Udemy, Coursera, and edX are cheap or free for programming courses, data science, and many other skills whose acquisition allows personnel to upskill without breaking the bank.
Conclusion
The payback concerning switching to a tech career is highly costly to commit to, but many options are now available to make it more accessible and feasible. Whether you opt for bootcamp loans, ISAs, scholarships, or part-time learning, there will be a solution that best suits your financial situation and your career goals.
Exploring each of these options thoroughly and learning about them would ease the financial burden now and help you focus on developing the necessary skills for success in technology.
