MentorWorks and Code Fellows Collaborate to Help Students Accelerate Careers in Software Development and Cybersecurity by Offering Income Share Agreements (ISAs)
MentorWorks teams up with Seattle-based Code Fellows to offer an ISA funding option to help candidates pay for training in software development and cybersecurity without incurring student debt.
BOSTON, MA, March 31, 2021
MentorWorks announced today that they have executed an agreement with Code Fellows, a Seattle-based software development and cybersecurity training program, to offer Income Share Agreements (ISAs) to students looking to enroll in their courses.
“While the programs we offer at Code Fellows cost a fraction of traditional education alternatives and result in far better employment outcomes after a much shorter student time commitment, it’s still prohibitively expensive for many to join us – particularly those who want and need new jobs the most,” said Jeff Malek, CEO of Code Fellows. “Code Fellows is more expensive than most other non-traditional education options, because our programs are longer and we take a much more human-directed, quality-focused approach. Our ongoing objective is to increase access to fast-paced, hyper-focused training and education, for people from all backgrounds. Financial need is a formidable barrier on that path for too many people. Our approach is to do everything we can to mitigate the costs while keeping quality high, and partnering with the best, most innovative companies we can find is a great way to do that. Karthik Krishnan, Ki Akrami and the MentorWorks team have done an incredible job, innovating on the ISA front. We’re very excited about this partnership, our shared mission and values, and what this new option brings to our students toward breaking down financial barriers.”
“Student success is at the core of what we do here at MentorWorks. At face value, our business is financing education through the ISA alternative to student loans, but what we are really doing is investing in the people we fund to help them realize their potential and start promising careers,” said Ki Akrami, MentorWorks Chief Investment Officer. “As such, we’re very excited about our partnership with Code Fellows because our missions are so aligned. Together, we are removing the barriers to entry for individuals who want to become software engineers and web developers; Code Fellows provides the robust, hands-on, accelerated learning and certification, while we remove the up-front costs and students don’t pay anything until they are gainfully employed.”
MentorWorks is a leader in the income share agreement funding space, having successfully originated over 200 ISAs within the past two quarters. MentorWorks has a proven “fund and support” model, which is evidenced by the 126% increase in the average income of students funded by MentorWorks. Also, 74% of students funded by MentorWorks represent BIPOC (Black, Indigenous and Persons of Color) populations and over 60% are from low-income families. Funded students include many individuals who may not have had any other education financing options, individuals with limited or no credit histories, parents who took time off to take care of their children and wish to return to the workforce, and community college to 4-year transfer students, among others.
With an ISA, students make monthly payments which are calculated to a fixed percentage of their income, for a set period of time, up to a maximum cap, without accruing interest. Unlike a loan, students do not pay until they find a job that pays at or above a minimum income threshold to ensure affordability. The payments adjust according to the level of the student’s income – making it an outcome-based model with downside protections in place for the student. The ISA obligation can be ended early by making payments as listed in the early payment schedule. In addition, MentorWorks provides career support to its students through its proprietary Talent Accelerator Platform (TAP), which is designed to enhance employment outcomes of funded students.
About Code Fellows
Code Fellows is the Pacific Northwest’s premier technical skills training academy, delivering high-quality live instruction both online and in person to people from all backgrounds. Learners are guided toward vocational change and life transformation through software development, technical operations, cybersecurity and career training. They guide people from all backgrounds to change their lives through fast-paced, career-focused education. They shape passionate learners with immersive training to meet industry needs and improve diversity.
Code Fellows believes everyone should have the opportunity to succeed. In reality, many qualified candidates aren’t pursuing careers in a technology-related field because they are discouraged somewhere along the way. That’s why Code Fellows is invested in finding alternate financing options to help individuals who come from underserved and underrepresented backgrounds find rewarding careers in tech.
To learn more about Code Fellows, go to: https://www.codefellows.org.
About MentorWorks Education Capital
MentorWorks Education Capital provides Income Share Agreement (ISA) programs, which enable college and non-traditional students to complete their education without incurring up-front tuition costs. ISAs are alternatives to loans with which approved students will have their tuition paid and, once employed, will make payments calculated to a fixed percentage of their income, for a set period of time, up to a maximum cap, without accruing interest. Uniquely, MentorWorks also provides career development support, mentoring and access to employers through their online and asynchronous Talent Accelerator Platform (TAP).
MentorWorks is a Community Development Financial Institution (CDFI), certified by the US Department of the Treasury. MentorWorks is the only institution offering an ISA program that has the CDFI designation. MentorWorks ISAs for Code Fellows candidates are issued by Blue Ridge Bank, N.A.
IonTuition, Inc. (ION) is the servicing partner managing student payments for the MentorWorks ISA program. ION is an education fintech services company that helps students and families take control of their education finances. ION is the most experienced, student-centric servicer for ISAs based on over a decade of experience providing services to colleges, universities and employers. To learn more about ION’s customized servicing platform visit: https://www.iontuition.com.
To learn more about MentorWorks Education Capital visit: https://www.mentorworks.com or reach out to Micha Sabovik, COO, at email@example.com.
Follow MentorWorks Education Capital on LinkedIn at https://www.linkedin.com/company/mentorworksISA.