California pricing options

Tuition for California residents is $30,000. You can choose to pay tuition up front in 3 installments, or pay $0 up front until you get a job making $50,000 or more using a Retail Installment Contract (RIC).

RIC vs ISA – what’s the difference?

A Retail Installment Contract and an Income Share Agreement are both contracts under which you agree to pay a percentage of your post-BloomTech salary, but only once you're making more than $50,000 per year (or the equivalent of $4,166.67 per month).

The BloomTech RIC has many of the same student protections as the ISA, including that neither require upfront payments nor accrue interest.

The main difference between an ISA and a RIC is the payment cap. Under an ISA, there are three scenarios in which you would stop paying Lambda School: after making 24 payments, after 60 months of payment deferral, or after reaching the cap. Students who sign a RIC will pay $30,000 regardless of how many payments it takes.

Retail Installment Contracts are currently available as a form of tuition financing for residents of California.

How payments of the Retail Installment Contract works

  • 1
    First, get a job earning at least $4,166 a month, pre-tax.
  • 2
    If you don't get a job, lose your job, or make less than $4,166 a month, your RIC payments will be “deferred,” and you will not owe payments until you are again earning the minimum amount. Unlike the ISA, a RIC does not have an automatic completion date, so you’ll still be responsible for the full amount owed regardless of how long it takes to complete your payment schedule.
  • 3
    Make your monthly payments in your Meratas Portal, which you’ll have access to after you sign the RIC paperwork. Meratas is a third party provider that handles payment processing for ISAs and RICs on behalf of BloomTech. RIC payments are due on the first of every month after you begin earning at least an annualized $50,000 a year (or the equivalent of $4,166 a month) in a job.
  • 4
    To allow you some time to get situated in your new role, you will have a one-month grace period before your first payment is due. In other words, you begin to make payments in the second full month in which your income exceeds $4,166. The amount you pay is 17% of that monthly income (pre-tax).
  • 5
    You’ll continue making monthly payments until you’ve paid $30,000, which is the total amount of tuition.
  • 6
    The RIC requires you to report your income and employment status to Meratas on a monthly basis, or as requested, until you satisfy the terms of your contract. You'll need to keep your servicer account up to date with your income and job status on a monthly basis once your RIC enters repayment status (i.e., when you graduate or are withdrawn from your BloomTech program). You must also update your employment status no later than five days after you begin a new job, regardless of whether that job is above the $4,166 per month income threshold.
  • 7
    You will also be required to submit your personal tax return to Meratas. This helps us ensure that you are not over- or under-paying toward your RIC. Please note that if you submit a joint tax return, your partner’s income is not considered in the reconciliation process.

First payment examples

Review these fictional examples to help you understand the grace period before the first payment is due.

Audrey

 Audrey graduated from BloomTech on May 15th. On June 5th, she started a job for which she is paid more than $5,000 a month (pre-tax). In June she was paid $5,000. Due to the payment grace period, the first month in which Audrey must make a RIC payment is August. 

Hakim

 Hakim graduated from BloomTech on May 15th. On June 20th he started a job for which he is paid $4,500 a month (pre-tax). However, in June he was paid $2,500 because he started his job partway through the month. The first month for which he must make a RIC payment is September.

How RIC payments are calculated

Once you begin making at least $4,166.67 per month (pre-tax), you will be required to begin paying 17% of your gross income earned at a "qualified job" (defined below).

Earned Income does not include:

  • Income earned by your children or spouse
  • Any money you inherit
  • Any money paid to you under certain government programs

California Tuition Questions

Important Note: The FAQs below explains certain tuition and RIC features and terms but do not override any terms in the RIC agreement itself. Students should read their enrollment agreement and RIC contract(s) carefully to understand their terms.

Retail Installment Contract Questions

How does a California retail installment contract (RIC) differ from an ISA?
The BloomTech retail installment contract and ISA are each contracts under which you agree to pay a percentage of your post-BloomTech income, but only once you’re making more than $50,000 per year (or at least $4,166 per month). The BloomTech RIC has many of the same learner protections as the ISA. 

There are several key differences between the contracts:
- Payment Rate: under BloomTech’s RIC, you must pay 17% of your pre-tax income. Under both BloomTech ISA options, you must pay 14% of your pre-tax income.

- Satisfaction of the Contract: Once you have (1) paid the maximum amount of $30,000 or $40,000 (depending on your ISA) - excluding down payment and late or failed payment fees, (2) complete your 36th or 48th monthly payment (depending on your ISA), or (3) defer payment for 48 total months, whichever comes first, you are free of obligation under the ISA. You can only satisfy a RIC by paying $30,000.

- Total Payment Amount: As mentioned above, you must pay a total of $30,000 to satisfy their retail installment contract. A learner under an ISA will never pay more than $37,950 ($7,950 down payment + 30K cap ISA) or $42,950 ($2,950 down payment + 40K cap ISA), but may pay less than the maximum amount depending on their post-BloomTech income.

Retail Installment Contracts are currently available as a form of tuition financing for residents of California. Income Share Agreements are not available for California residents.

How do I calculate how much I need to pay for the Retail Installment Contract?
The 17% monthly income payment requirement is based on your "Earned Income," which means all you are paid or that you earn. Earned income is your gross income earned or received in exchange for performing services, whether as an employee, independent contractor, paid intern, business owner or partner, before taxes or any other withholdings (including contributions to retirement plans and savings plans). 

For example, the US Internal Revenue Service for the 2019 reporting year defines income to include on an annual basis (a) the sum of Line 1 (Wages, salaries, tips, etc.) of IRS Form 1040, Line 1 of IRS Schedule C (Form 1040) (Gross receipts or sales) , as reported or required to be reported on U.S. federal income Tax returns. All of those are examples of “earned income.” 

Earned Income does not include:
- Income earned by your children or spouse (if any)
- Any money you inherit
- Any amounts paid to you under the Social Security disability insurance program (title II of the Social Security Act) or the Supplemental Security Income program (title XVI of the Social Security Act)
- Any amounts paid to you under the Child Nutrition Act of 1966.

Learners are not required to make a monthly payment if their earned income for the previous month is less than $4,166.

What does "deferment " mean and what's the process?
"Deferment" is a period of time when you do not have to pay your RIC installments because you either do not make $4,166 or more per month. Learners are required to keep their servicer account up-to-date with their income and job status on a monthly basis once their RIC enters repayment status.
Do I have to make RIC payments even if I do not get a job in technology or coding?
Yes. Technology is a part of nearly every professional field. In fact, technical skills—including the ones learners gain in BloomTech programs—dominate the list of most-in-demand qualifications for jobs overall. That means that our graduates can apply skills gained at BloomTech to a wide range of careers, not only roles that traditionally fall in the tech industry.
What happens to my tuition if I withdraw from BloomTech?
We may reduce the total tuition obligation for people who leave BloomTech based on completion of sprints. A sprint is one week long. You can cancel your RIC without owing any tuition within the first 2 sprints of your BloomTech program. Please see your Enrollment Agreement for the most up-to-date information.
Can I pay tuition up front instead of signing a RIC?
Yes, during the admissions process you have the ability to choose from various options on how you would like to pay your tuition. California residents can pay for their BloomTech program via a RIC or upfront payments (one lump sum or 3 equal payments).
When and how do I report my income?
Learners are required to keep their servicer account up-to-date with their income and job status on a monthly basis once their RIC enters repayment status. A RIC enters repayment status when a learner either graduates or withdraws from their BloomTech program. 

Learners must inform their RIC servicer of their employment status no later than five days after starting work, regardless of whether or not they are in a position paying at least the minimum monthly income required to make monthly payments under the agreement. Learners must also inform their RIC servicer of the name of their earned income every month, or as requested by BloomTech, thereafter. 

Each year, there is a tax reconciliation process performed to verify the learners' reported income. This is to ensure that learners are not over- or underpaying what they owe per their financing agreement. 

Learners must submit to BloomTech and/or their servicer the following documentation evidencing their earned income: 
- Before their first monthly payment and every time their earned income increases or decreases, a pay stub, a letter from their employer, independent-contractor agreement, or other evidence of their monthly income. 

- By April 30th each year, a year-end pay stub, form W-2, form 1099, schedule K-1, or other official documentation showing their sources of earned income and the dates of their employment for the previous calendar year. 

- If BloomTech requests it, a completed and signed IRS form 4506-T (or any successor form) designating BloomTech as the recipient of their tax return information for returns covering any months for which they are required to make a monthly payment, dated no earlier than 30 days before the date they provide it BloomTech.

Who is Meratas? 
Meratas is a third party provider who services all RICs on behalf of BloomTech. Meratas handles parts of the financing process like origination and payment processing. They will perform things like identity verification, bank account verification, and learners will be able to make their payments through their online portal. 

For questions about payments or using the servicing platform, learners can contact the Meratas's support teams: 

Email: help@meratas.com
Portal: message within your Meratas portal
Phone: (877) 311-3824, Monday through Friday, 8 am to 5 pm PST.

Upfront Tuition in Installments Questions

How do I pay tuition in installments?
BloomTech tuition in California is $30,000, which you can choose to pay in 3 payments of $10,000, due at the following times:
$10,000 Due at Enrollment deadline
$10,000 Due by Sprint 7 (Web Development and Data Science) or Sprint 10 (Backend Development) [25% Program Completion]
$10,000 Due by Sprint 13 (Web Development and Data Science) or Sprint 19 (Backend Development) [50% Program Completion]

How do I make the payments?
Once you are enrolled and have selected the tuition installment payment plan, you will receive an emailed invoice for each installment due. You can make your tuition installment payments via ACH, wire transfer, credit card, or check. For more information, please email financialservices@bloomtech.com.
What happens if I withdraw or am withdrawn? When should I expect my refund after I withdraw or am withdrawn?
If you withdraw or are withdrawn, you may be entitled to a tuition refund, as documented in your Enrollment Agreement. Your maximum refund can only be up to the amount of tuition you've actually paid. Please reference the tuition proration and vesting schedule in your Enrollment Agreement for additional information.

Once you withdraw or are withdrawn, someone from Financial Services will reach out to you to get any information necessary to process your refund. Your refund will be issued within 45 days of your withdrawal date.

For all other questions related to upfront tuition, please contact the front desk via The Hub or email financialservices@bloomtech.com.
Is the California Upfront Tuition choice eligible for BloomTech’s Tuition Refund Guarantee?
Yes, California residents who pay full, upfront tuition for their BloomTech program are eligible for BloomTech’s Tuition Refund Guarantee

Get some advice

No matter which option you choose, you will be signing legally binding documents that will affect your finances. We'll do everything we can to help you feel confident about your decision.

Talk to our support team

Reach out with questions at support@bloomtech.com. We’re here to help.

Start your application

Become a student at Bloom Institute of Technology. The next application deadline is:

December 10, 2021
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