BloomTech students sue the for-profit California coding bootcamp — again

Dive Brief:

  • Four students at the California-based coding bootcamp the Bloom Institute of Technology, or BloomTech, sued the school this week, alleging it misrepresented its job placement rates.
  • Other students have sued BloomTech before over similar allegations. However, this is the first time students have sought a class-action lawsuit against the institute, which was formerly known as the Lambda School.
  • Students in the current lawsuit also accuse BloomTech of engaging in unlicensed lending, noting that it operated without California’s approval until 2020.

Dive Insight:

BloomTech, on its face, presents an enticing deal. It says it offers quick training in a popular field without paying upfront, as some of its students can use what’s known as income-share agreements, or ISA, to pay for their education. The arrangement allows students to repay their cost of attendance as a percentage of their income post graduation.

However, BloomTech has clashed with state regulators, who at one point told the school to stop operating without their approval. The school has since received the greenlight from the state, but California’s rules do not permit it to offer California residents the ISA option. 

Students in the new lawsuit, who are being supported by advocacy group the National Student Legal Defense Network, are seeking financial relief, like BloomTech canceling their ISAs or giving them a refund.

BloomTech did not immediately respond to a request for comment Friday.

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