PORTLAND, Ore., Jan. 12, 2021 (GLOBE NEWSWIRE) — Alchemy Code Lab introduces its student-friendly income share agreement (ISA), a new tuition funding option that allows students to pay their tuition only after securing employment post-graduation. Funded by impact investing nonprofit Social Finance through the Career Impact Bond, this student-centered financing model is designed to increase equity in employment and economic opportunity.
Available now, students can apply for ISA funding once they are accepted to Alchemy’s software development training program. Students enroll with little to no upfront cost, and once they graduate and secure meaningful employment, they repay program costs as a fixed percentage of their income, capped at a set dollar amount and for a certain period of time. Repayment begins once they secure a role earning at least $50,000 in annual salary.
“Our mission is to create a better tech industry, and that includes providing opportunities to those who have incredible potential, regardless of their financial status,” says Alchemy founder Marty Nelson. “The ISA option allows us to continue to accept the applicants who are most promising and focus on preparing them for a rewarding career.”
Social Finance is a 501(c)(3) nonprofit organization dedicated to mobilizing capital to drive social progress. With a mission to measurably improve the lives of those in need, it only invests in training programs with proven outcomes and has thus far funded three technology training programs including Alchemy. With a mission to measurably improve the lives of those in need, it only invests in training programs with proven outcomes, and has thus far funded only three technology training programs including Alchemy.
Funded by impact investors, the Career Impact Bond (CIB) is a financing model that expands access to people who face barriers to education and employment, such as low income, criminal justice involvement, credit history, or immigration status. The CIB addresses these barriers with wraparound support services and student-friendly repayment terms.
“The Alchemy Code Lab partnership is the first Career Impact Bond to integrate a living stipend,” says Tracy Palandjian, Social Finance CEO and co-founder. “Removing the financial burden of living expenses helps students focus on their studies and complete the program.”
With the size of the investment, Alchemy also anticipates being able to offer the ISA to almost half of each cohort over the next three years.
Alchemy Code Lab is a full-time, 25-week program designed to place students directly into mid-level software developer jobs. Its average starting salary for graduates is $80,000 per year. Alchemy was recently ranked the number-one coding bootcamp in the United States by Switchup.com, a website whose rankings are dependent on quality of reviews rather than quantity. Tuition at Alchemy is currently $24,000 for the complete program. Alchemy also offers tuition assistance in the form of diversity scholarships and veteran benefits.
Social Finance is a 501(c)(3) nonprofit organization dedicated to mobilizing capital to drive social progress. We believe that everyone should have the opportunity to thrive and that we can catalyze those opportunities through a set of innovative financing strategies called Pay for Success. To date, Social Finance has mobilized nearly $150 million of capital to address a wide range of social issues in areas such as criminal justice, education, health, and workforce development. www.socialfinance.org
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