Excerpted from Portland Business Journal
Portland, OR code school Alchemy Code Lab is launching a new way for students to fund and repay their tuition thanks to an investment by nonprofit Social Finance.
Using a $5.8 million investment from the impact investor, Alchemy is offering what it calls a student-friendly income share agreement. Students can apply for ISA funding that will cover tuition and a living stipend while they participate in the 25-week, full-time program. There is also no credit check, which can be a barrier for some students, tied to the program.
Students repay the program once they land a job earning at least $50,000 annually. Repayments are a fixed percentage of income and have a capped dollar amount, the group said in a statement.
“The Alchemy Code Lab partnership is the first Career Impact Bond to integrate a living stipend,” said Tracy Palandjian, Social Finance CEO and co-founder, in a written statement. “Removing the financial burden of living expenses helps students focus on their studies and complete the program.”
Read full article (paywall)