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Climb Credit’s Risk-Share Loans

Climb Credit Risk-Share Loans

One thing that makes Climb different from many other lenders is our risk-share loan structure. You may be wondering why we use this model and what impact it has on schools and learners. So, we’ve put together a quick guide to help you better understand this aspect of our partnership.

Why do we use a risk-share?

At Climb, our mission is to make sure that the incentives of school and lender are aligned in a way that benefits all parties involved—especially the learner. And by having some skin in the game when it comes to graduate success, schools demonstrate their confidence in the positive effects their programs have on the people who complete them.

Aligned Incentives

At Climb, our mission is to make sure that the incentives of school and lender are aligned in a way that benefits all parties involved—especially the learner. And by having some skin in the game when it comes to graduate success, schools demonstrate their confidence in the positive effects their programs have on the people who complete them.

Higher Approval Rates

Most importantly, this model allows us to approve more students with all FICO scores. Because we believe in the power of career-focused programs — and our school partners believe enough to truly invest in student success — we can approve and help enroll these students who may have been left behind with other lenders. 

Improved access and enrollment

learners served as of 2019
1000
of learners say they wouldn't have been able to attend without Climb.
0 %
enrollment increase after implementing Climb4
0 %

4 Enrollment increase stated by a full-online Climb partner school.

How does a risk-share work?

With traditional student financing options, lenders only serve students at the top of the credit spectrum, leaving behind a large portion of students. The only other options are to turn these students away or put them on an internal payment plan—which costs a lot of time and money to manage, puts all of the risk of student defaults on the school, and reduces the amount of up-front money the school receives.

With Climb, typically a portion of the tuition—or tuition advance—is sent to the school, recourse-free, when a student starts class. The rest is deferred and sent to the school once that student starts paying back their loan—ensuring that schools are invested in making their student successful. 

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What to Expect: Realistic Outcomes

Climb’s Comprehensive Access Solution can offer a strategic balance of increased enrollments and upfront cashflows compared to traditional lenders. While no financing solution guarantees 100% collection, our data-driven approach maximizes both upfront cash and long-term repayment rates.

Typical Partner Results:

  • 15-30% of students qualify for Climb Loans with upfront tuition delivered to the school shortly after course start
  • 45-60% of students qualify for 0% APR* payment plans
  • Enrollment increases of 20%+ reported by partner schools**

**Results vary by school and student demographics. This represents performance reported by individual school partners and should not be considered a guarantee of your specific outcomes.

The bottom line: CAS is designed to maximize your net tuition recovery while eliminating the administrative headaches of student financing.

Maximizing Your Results

Pro Tip: Schools that require student deposits and set up automatic payments during enrollment see significantly better repayment performance across all financing options. These simple steps can meaningfully improve your outcomes.

FAQs

We use a comprehensive, AI-driven assessment that goes beyond traditional FICO scores to better serve career training students:

  • Climb Credit Score: Over 150 data points specifically designed for vocational students
  • Debt-to-Income Ratio: Reliable predictor of payment performance
  • FICO Score: Used primarily for interest rate assignment

Key advantages of our approach:

  • Soft credit pull until loan funding (no credit impact during application)
  • The majority of students receive instant decisions
  • Students can apply with co-borrowers directly in the application
  • More accurate placement into appropriate financing products

We use a comprehensive, AI-driven assessment that goes beyond traditional FICO scores to better serve career training students:

  • Climb Credit Score: Over 150 data points specifically designed for vocational students
  • Debt-to-Income Ratio: Reliable predictor of payment performance
  • FICO Score: Used primarily for interest rate assignment

Key advantages of our approach:

  • Soft credit pull until loan funding (no credit impact during application)
  • The majority of students receive instant decisions
  • Students can apply with co-borrowers directly in the application
  • More accurate placement into appropriate financing products

Students are placed into funding brackets (Elite, Standard, Enhanced) based on our AI assessment. Higher-credit students generate higher upfront payments to your school, while students with limited credit are seamlessly directed to our 0% Payment Plan.

These brackets are established using data from over $1 billion in career training loan originations and may be adjusted periodically based on updated repayment trends.

Important note: Regardless of which bracket a student falls into, they are considered fully paid by your school once funded. The student’s repayment obligation exists exclusively between Climb and the student.

Elite Access not available for Computer Science programs. Upfront percentages vary by industry and loan terms.

Once Climb disburses upfront funding for a student loan, that student is considered fully paid by your school. You will not receive any additional payments for that student—the single upfront payment is complete and final.

From that point forward, the student’s repayment obligation exists exclusively between Climb and the student. Your school has zero liability if the student defaults, and you keep the full upfront payment regardless of the student’s future payment performance.

They’re automatically offered our 0% Interest Payment Plan, ensuring no student is turned away while maintaining steady monthly cash flow for your school.

Higher-credit students generate larger upfront payments (75-100% of tuition), while students with limited credit use our 0% APR* Payment Plan for consistent monthly revenue. Both options are risk-free for your school

Absolutely. Climb complements existing payment options like scholarships, employer-sponsored programs, and internal financing.

Absolutely. Climb complements existing payment options like scholarships, employer-sponsored programs, and internal financing.

Typically, within 5-10 business days after your partnership agreement is signed.

Comprehensive onboarding webinar, continuous partner support via AI-assisted chat and live email—and real-time borrower assistance with our live-chat-available student success team.

No. Climb fully manages the administrative responsibilities—your team simply monitors your school’s performance via our intuitive School Portal.

Your school is fully protected either way. For Climb Loans, you keep the entire upfront payment with zero liability. For Payment Plans, you only receive what students actually pay, with no risk to your school.