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If you’ve been dreaming of changing your career, specializing in technology, or reinventing yourself, then you’ve probably considered how you might handle the cost of training. There are a lot of options available and you need to evaluate each of them to find the best one for you.
We know that there are both professional and economic barriers that need to be overcome in order to access the digital world. At Ironhack, we’ve spent years working to find financing methods that can help the most people make the leap into tech. We’ve looked at everything from the traditional options like bank loans to the increasingly common pay-for-success methods.
Pay-for-success options are those that allow you to finance the program once you’ve finished rather than before. These financing methods are very popular in the United States and are gaining momentum in the European market. At Ironhack, we’ve designed our own financing option, without banks or intermediaries: the deferred tuition. This financing option is available for the Lisbon, Barcelona, Madrid and Remote campuses.
Thanks to this flexible option, you’re able to take one of our bootcamps by paying only 15% of the cost in advance. You will begin to pay off the rest once you find a job, or when 8 months have passed since your graduation. It’s a direct agreement between you and Ironhack. There is no interest and no additional cost. The price of the bootcamp is exactly the same as it is for students who pay in full, the only difference is that you defer the payments. This makes it easier for you to take the leap, makes you more financially comfortable while you’re enrolled in the program, and ensures you can handle the payments once they begin.
Here’s how it works: Based on data from our own graduates, most Ironhackers find work within 4 to 6 months of graduation. We allow 8 months from graduation before beginning payments so that you have enough time to find a role in the field. If you find a job in that timeframe and your gross salary is at least 1.300 euros per month, you will begin to repay the tuition cost in monthly installments from the time you begin your new role. If eight months have passed and you have not found a job, you will enter repayment and you will pay the remaining tuition in 6 monthly installments.
If you have been in contact with us or have visited the Ironhack website, you may be familiar with the option of the Income Share Agreement. Many people wonder which option is best for them: Deferred Tuition or the Income Share Agreement (ISA). They may seem similar, but there are several differences to take into account when choosing between them.
With deferred tuition, you will need to advance a payment of 15% before starting the bootcamp. This will reserve your place in the program and will be deducted from the total amount of the course. Once you find a job, or after 8 months have passed since graduation, you will only be financially responsible for the remaining 85% of your tuition.
With deferred tuition, you will pay a few fixed installments based on the price of your program, not on what you earn in your new role. In other words, once you start paying your remaining tuition, you will have 6 months to pay it off with fixed monthly payments. This option is ideal if you don't want bank loans and are looking for a flexible option that allows you to plan for your future payments.
With the ISA, you pay nothing upfront and the amount you pay after the course is variable ("pay-for-success" model). Once you finish the program and you’re earning more than 18.000 euros a year, you will have to pay approximately 12% of your income for a total of 48 monthly payments. That means that the final cost of your program will depend on your income. This option is best for people who don’t have money to invest upfront and are comfortable with a longer pay off timeframe and variable payment amounts.
It’s important to note that the majority of Ironhack graduates earn a very high income. This means that an ISA could end up costing more than with a traditional loan, although in no case would it exceed a maximum of 9.900 euros. To give you an idea: if you earn 18.000 euros a year, you would pay 180 euros a month for 36 months, while if you achieved an income of 30.000euros a year, you would pay 300 euros a month for 33 months. Remember, the amount you end up paying for the program is not equal to the tuition price.
For both ISA and deferred tuition, you must complete the admission process where your circumstances and motivation will be taken into account to assess your candidacy. You will have to take a personal interview and an online logical reasoning test to assess your skills.
Since places are limited and we want to promote the best talent, only candidates who meet the criteria will be able to opt for these payment options.
Choosing an alternative to a traditional loan is a great way to avoid a large investment at the beginning and break the total down into smaller installments. In short, these are financing options we’ve created to support our students, regardless of their situation.
In our deferred tuition page you’ll find more information to apply for that option and join any of our 4 bootcamp programs in the Lisbon, Barcelona, Madrid or Remote campuses. Also, you can find answers to all the most frequently asked questions in our recent webinar about the Deferred Tuition.
Also, if you want more information about all the financing options available at Ironhack, do not hesitate to visit our financing page.