Hi Folks!

I want to be the first to tell you about an important announcement. As of today, App Academy will be moving to a new tuition model that will be based on flat tuition deferment as opposed to the current percentage deferment plan.

If you received an acceptance letter before August 15th, 2017, containing a percentage deferment contract, you are still eligible for enrollment under the percentage deferment plan. If you did not receive an acceptance letter containing a percentage deferment contract before August 15th, 2017, you will now fall under one of our new tuition plans.

I understand this change may seem sudden. However, as I explain further, it is a necessary step we were required to take.

To start, it’s critically important for me to tell you that this change will not affect the core tenants of our program: the selectivity of our admissions department, the quality of instruction, our emphasis on soft skills education, or any other aspect that has played a role in helping us become the leader in web development education.

In fact, this change will improve App Academy’s financial health moving forward and most importantly, accelerate our ability to improve people’s lives.

Let’s get into specifics.

Years ago, regulators made a change requiring skill-based schools to charge students a set tuition amount for any given course. This was part of a larger effort to ensure fair practices in the industry. All professional schools are now required to make this change, including other bootcamps also using the percentage model.

I was initially uneager of making this change to our program as I had felt the percentage model played an important role in aligning our incentives with our students’. However, after much debate and planning, we realized this was actually an opportunity to make changes that would positively affect our students and the quality of their education.

We have many reasons for our optimism. We know we have:

    The widest applicant pool, due to our deferred tuition model
    An evolving curriculum driven by market trends and market demand
    The largest investment in post-course resources, including soft-skills development
    The strongest group of alumni working at top tech companies

None of these aspects of our program have been dependent on the percentage model. We will still be offering a deferred tuition option–therefore, our mission, to align our success with that of our students, will go unchanged.

The deferred payment plan will consist of a fully refundable $5,000 deposit and a deferred total tuition of $28,000, due only after you find a job as a developer. We do not get paid until you’re hired.

The key takeaway is that the deferred tuition plan allows us to maintain our value-proposition of an egalitarian system. We’re dedicated to removing barriers to a quality education, and as a part of that commitment, we’ve developed a variety of payment plans so that students can select the option that best works for them and their career goals. To see an overview of all our plans, click here.

How did we choose the $28,000 price point for our new deferred tuition plan? By analyzing the level of sustainability from a range of economic cycles for developer hiring in relation to our cash reserves. To ensure tuition is still based on how much a student can afford, the monthly payment requirement for students who find jobs is now based on salary bucket ranges. If a student gets a relatively low offer, their monthly bill be spread out over a longer time, while those with a higher offer will be larger over fewer months.

This change in tuition will help us in other ways.

We can invest more into placements in the form of additional staff, more support into the TalentMatch platform that helps students find jobs, and increased content marketing efforts that reach employers everywhere.

Additionally, the extra money will help us further invest in our students and staff. For students, we’re looking into expanding the deposit assistance program to increase diversity in the cohort and improve the experience for all. For staff, we’re going to increase access to management training and provide additional support where needed so they can bring their best selves into the classroom.

In conclusion, I think changing the pricing model is an important structural event that offers a great opportunity to help us in the long run. App Academy is doing great today and I am excited for the future.

If you have any questions about this change, please email us at [email protected].

Thanks for reading!

Kush