What is an income share agreement (ISA)?

An ISA is a financing arrangement where you pay nothing (or a small deposit) to attend a bootcamp, then pay a percentage of your post-programme income (typically 10-17%) for a fixed period (typically 2-4 years) after you land a job earning above a minimum threshold (e.g., $50,000/year in the US). If you do not get a job above the threshold, you pay nothing. In theory, this means the bootcamp only gets paid if you succeed.

Why have most bootcamps stopped offering ISAs?

Several reasons: (1) Regulatory pressure. The US Consumer Financial Protection Bureau (CFPB) and state regulators increasingly treat ISAs as consumer loans, requiring disclosure and compliance that makes them expensive to offer. (2) Bad economics for bootcamps, since many graduates do not earn above the threshold, leaving the bootcamp unpaid. (3) Bad press, as stories of aggressive collections and complex terms damaged the model reputation. (4) The maths often favoured the bootcamp too heavily, with total payments significantly exceeding upfront tuition.

Are there ISAs available in Africa?

Very few. The ISA model was primarily a US phenomenon and has not scaled significantly into African markets. Some programmes have experimented with deferred payment or employer-sponsored models, but the legal and financial infrastructure for ISAs in East Africa is undeveloped. For most African learners, the relevant options are upfront payment, payment plans (where available), employer sponsorship, or choosing a programme with pricing that does not require financing (like McTaba at KES 2,999-120,000).

Is an ISA better than a student loan?

It depends on the terms. An ISA with a 10% income share for 2 years caps at a fixed total. A student loan has a fixed amount plus interest. If you land a very high-paying job quickly, a loan is cheaper (you pay the fixed amount regardless of income). If you struggle to find work, an ISA is safer (you pay nothing if your income stays below the threshold). The problem is that ISA terms are often more complex and less transparent than loan terms, making comparison difficult.

By Bonaventure Ogeto|Updated June 14, 2026

Income Share Agreements (ISAs): Worth It or a Trap?

Income share agreements (ISAs) let you attend a bootcamp for no upfront cost and pay a percentage of your income (typically 10-17%) after landing a job earning above a threshold. In theory, this aligns the bootcamp incentive with your success. In practice, ISAs often cost more than upfront tuition (sometimes 2-3x more), have complex terms that are hard to understand, and most major bootcamps have discontinued them due to regulatory pressure and unfavorable economics. For African learners specifically, ISA infrastructure barely exists. The simpler alternative: choose a programme with affordable upfront pricing (KES 2,999-120,000) and avoid the long-term income obligation entirely.

How ISAs Work (The Theory)

The pitch is elegant: "We are so confident in our programme that we will only get paid if you succeed."

In the ISA model, you attend a bootcamp for no upfront cost (or a small deposit). After graduating and landing a job above a minimum salary threshold, you pay the bootcamp a percentage of your gross income for a fixed period. Typical terms in the US market:

Income share: 10-17% of gross monthly income
Payment period: 24-48 months after employment
Minimum salary threshold: $40,000-$60,000/year (below this, you pay nothing)
Payment cap: total payments capped at a fixed maximum (e.g., $30,000)
Time limit: if you have not met the threshold after a set period (e.g., 5 years), the obligation expires

The aligned-incentives argument: if the bootcamp only gets paid when you get a good job, they are motivated to give you an excellent education and strong career support. If they produce unemployable graduates, they earn nothing.

In theory, this is a fair arrangement. In practice, it is more complicated.

How ISAs Fail in Practice

Problem 1: You often pay more total than upfront tuition.

A bootcamp that charges $15,000 upfront might set ISA terms of 15% for 24 months. If you land a $70,000 job, you pay $10,500/year x 2 = $21,000 total. That is $6,000 more than the upfront price. The ISA is not free tuition. It is expensive tuition with a deferred payment schedule. The "convenience" of paying nothing upfront costs you thousands extra.

Problem 2: Complex terms that are hard to understand.

ISA contracts are lengthy legal documents. The definition of "qualifying employment" may include non-tech jobs. The calculation of "gross income" may include bonuses, freelance income, or side jobs. Some contracts have clauses that extend the payment period if you leave a job. Most people sign without fully understanding the terms.

Problem 3: Aggressive collections.

Several ISA-backed programmes have been publicly criticised for aggressive collections practices: pursuing graduates who disputed their classification, treating freelance gigs as qualifying employment, and using third-party collections agencies. The "we only get paid if you succeed" marketing falls apart when "success" is defined as any employment above a low threshold, not a satisfying tech career.

Problem 4: The bootcamp incentive is not actually "your success."

The bootcamp's incentive is to get you above the salary threshold as fast as possible. That is not the same as getting you into the best job for your career. A bootcamp under the ISA model is financially incentivised to push you toward any qualifying job quickly, not to invest in your long-term career development.

Why ISAs Are Dying

The ISA model peaked around 2019-2021 and has been declining since. Major developments:

Lambda School (now BloomTech), the highest-profile ISA programme, faced multiple lawsuits, regulatory actions, and eventually pivoted away from the ISA model before shutting down in 2024.
General Assembly discontinued ISAs.
Flatiron School scaled back ISA offerings.
The US CFPB issued guidance treating ISAs as private student loans subject to federal consumer protection laws, dramatically increasing compliance costs for bootcamps offering them.
Multiple state attorneys general investigated ISA providers for deceptive practices.

The pattern is clear: ISAs sounded good in marketing but proved problematic in execution. The programmes that survive and thrive in 2026 have mostly moved to straightforward pricing: you pay a known amount, you receive education, the transaction is clear.

For African Learners: ISAs Barely Apply

If you are in Kenya, Rwanda, Uganda, Tanzania, or Nigeria, ISAs are largely a non-factor for your decision because:

Almost no African bootcamps offer them. The ISA model requires financial infrastructure (income verification, automated collections, legal enforcement) that is not widely available in East African markets.
African bootcamp prices are already low enough to pay upfront. The ISA model was designed for $15,000-$20,000 US bootcamps where upfront payment is genuinely difficult. At African price points (KES 2,999-120,000 / $23-$930), saving for a few months or using a payment plan is more practical than a complex income-sharing arrangement.
Mobile money makes upfront payment simpler. M-Pesa and mobile money remove the friction that made ISAs attractive in markets where credit is the default payment method.

If an African bootcamp offers an ISA or deferred payment model, scrutinise the terms carefully. Ask: what is the total amount I will pay? What counts as qualifying employment? How is income verified? In most cases, the straightforward alternative is simpler and cheaper.

Better Alternatives to ISAs

If you are considering an ISA because you cannot afford upfront tuition, here are alternatives that do not carry long-term income obligations:

Start with a low-cost course. McTaba Tech Foundations at KES 2,999 ($23) is accessible to almost anyone. Build foundational skills, then save toward the full programme while working.
Use free resources first. Spend 3-6 months on The Odin Project or freeCodeCamp (free). If you succeed, you may not need a paid bootcamp at all. If you stall, you have evidence that you need structure, and you have saved money in the meantime.
Payment plans. Some programmes (including McTaba) offer instalment payments. You pay a fixed total over time without percentage-of-income obligations. Ask about this before assuming ISA is the only option.
Employer sponsorship. If you are currently employed, some employers will fund career development. The business case: you become a more valuable employee. It costs nothing to ask.
Save and enrol. At KES 100,000-120,000, saving KES 20,000/month for 5-6 months gets you there. That is achievable on most salaries in African cities. The 5-6 months of saving can also be spent on free resources, so you arrive at the bootcamp already ahead.
Scholarships. Programmes like ALX, SheCanCODE, and some McTaba cohorts offer funded or discounted spots. Check our scholarship guides for Rwanda, Uganda, Tanzania, and Nigeria.

The bottom line: ISAs were a solution to a US-specific problem (bootcamps costing $15,000+ in a credit-dependent market). In Africa, the problem is different and the solutions are simpler. Choose a programme priced honestly, pay what you can afford, and avoid long-term income obligations that look simple now but complicate your finances for years.

Key Takeaways

✓ISAs often cost 2-3x more than upfront tuition by the time you finish paying. A bootcamp that charges KES 100,000 upfront might charge the equivalent of KES 200,000-300,000 over 2-3 years through an ISA.
✓Most major US bootcamps (Lambda School/BloomTech, General Assembly, Flatiron) have either discontinued or significantly scaled back ISA programmes due to regulatory pressure and poor economics.
✓The "aligned incentives" argument sounds good but breaks down in practice. Bootcamps have been criticized for aggressive collections, complex terms, and counting any job (not just tech) as triggering payment.
✓In Africa, ISA infrastructure barely exists. Very few programmes offer them, and the legal/financial framework is less developed. Upfront payment (especially at African price points) is the simpler and often cheaper option.
✓If you cannot afford upfront tuition, alternatives include: payment plans, starting with a low-cost course (KES 2,999), free programmes, or saving for 2-3 months before enrolling.

Frequently Asked Questions

What is an income share agreement (ISA)?: An ISA is a financing arrangement where you pay nothing (or a small deposit) to attend a bootcamp, then pay a percentage of your post-programme income (typically 10-17%) for a fixed period (typically 2-4 years) after you land a job earning above a minimum threshold (e.g., $50,000/year in the US). If you do not get a job above the threshold, you pay nothing. In theory, this means the bootcamp only gets paid if you succeed.
Why have most bootcamps stopped offering ISAs?: Several reasons: (1) Regulatory pressure. The US Consumer Financial Protection Bureau (CFPB) and state regulators increasingly treat ISAs as consumer loans, requiring disclosure and compliance that makes them expensive to offer. (2) Bad economics for bootcamps, since many graduates do not earn above the threshold, leaving the bootcamp unpaid. (3) Bad press, as stories of aggressive collections and complex terms damaged the model reputation. (4) The maths often favoured the bootcamp too heavily, with total payments significantly exceeding upfront tuition.
Are there ISAs available in Africa?: Very few. The ISA model was primarily a US phenomenon and has not scaled significantly into African markets. Some programmes have experimented with deferred payment or employer-sponsored models, but the legal and financial infrastructure for ISAs in East Africa is undeveloped. For most African learners, the relevant options are upfront payment, payment plans (where available), employer sponsorship, or choosing a programme with pricing that does not require financing (like McTaba at KES 2,999-120,000).
Is an ISA better than a student loan?: It depends on the terms. An ISA with a 10% income share for 2 years caps at a fixed total. A student loan has a fixed amount plus interest. If you land a very high-paying job quickly, a loan is cheaper (you pay the fixed amount regardless of income). If you struggle to find work, an ISA is safer (you pay nothing if your income stays below the threshold). The problem is that ISA terms are often more complex and less transparent than loan terms, making comparison difficult.

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