Boot Camps Help Graduates Get Jobs Without the Debt
For many, a degree from an accredited university represents the promise of a successful career. But as more college graduates find themselves in major debt without any career prospects, some students are turning to a different type of institution: boot camps.
Most boot camps, like MissionU and Praxis, focus on coding and connect students with internships in tech. Although graduates of these programs lack a name-brand degree, they tend to make up for it with reduced debt and high-paying jobs after graduation. University graduates are often saddled with debt for years after college, but boot camp graduates rarely face these problems.
MissionU uses an income share agreement model, in which students pay nothing up front and instead pay back a percentage of their salary after graduating. Since it partners with tech companies to secure high-paying jobs for its graduates, both the students and the institution are better off. In traditional universities, administrators have little motivation to help students succeed after graduation. But by using the income share agreement program, MissionU aligns its own incentives with those of its students.
With almost 5 million borrowers in default on their student loans, the education finance system is in need of reform. While changes are coming slowly, boot camps and income share agreements may be the first steps toward a better system of funding higher education in the United States.