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How to Choose a Student Loan

Figuring out how to choose a student loan shouldn’t be confusing. After all, you’re already focusing on getting ready for your class, and you don’t need any extra difficulties piled on top of reviewing the syllabus and figuring out the best coffee shop near campus. At Climb, we want to make it easy to choose the best loan option for your situation and your needs. That’s why we’ve put together this guide to help you compare student loans during your financing decision, so you can get back to what really matters — your education!

What student loans are available for my program?

The first question to ask yourself is the easiest. Which lending options are available for the program you’ll be attending? Federal financial aid isn’t available at every school, and some schools partner with specific loan companies to provide financing for their courses.

For example, Climb only offers loans for programs that we’ve partnered with, so our loans can’t be used for every class out there. (Psst — do you know of a school that you think is great but doesn’t partner with us? Reach out and tell us about it!) Talk to your school about what can be used to pay for your tuition, and narrow down your choices from there!

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Do I need living expenses?

In a similar vein, if you know that you’ll need living expense financing while you’re in class, you’ll want to check and see which lenders offer living expenses, if any. For some students, they might not be able to work while taking the class, and they might not have enough saved up to cover bills, groceries, or other necessities during their course. In this case, living expense financing can be an important (or even essential) part of their student loan.

What are the loan terms?

Now, it’s time for what may be the biggest factor to weigh in your student loan decision. How much are you going to have to pay, both on a month-by-month basis and in total? To understand both of these, you should look at interest rate, APR, potential fees, and loan term length. One lender might have lower rates or fees, and one might offer a term length that better suits your situation.

For Climb loans, although we’re not able to provide all of an applicant’s loan terms before they submit an application, we don’t want that to keep them from making an informed decision. That’s why we only perform a hard credit pull once a loan is funded. That way, you can apply just to check your terms — or apply multiple times with different co-borrowers — with no impact to your credit score, to try to find the best terms you can get!*

How to Choose a Student Loan

Which student lender will give me the most support?

Beyond the loan itself, though, there’s one more thing to consider when comparing loan options: the support you’ll get from the loan company itself. After all, a student loan is a much better experience if you have people there to help you throughout the process. Is one company much clearer in their communication? Who is easier to reach if you have a question? Do they have a chat box or a Help Center, in addition to the standard phone calls and emails? You shouldn’t have to go it alone, and after comparing all the terms and availabilities, it may come down to who you believe you would rather work with.

There’s no one and only aspect of a lender to look at when deciding whether you should sign those loan documents, and different people will place different values on each feature. But with the proper research and consideration, you can be sure you know how to choose a student loan that’s best for you!

*Climb performs a “soft” credit pull to evaluate eligibility, but this soft credit check will not affect your credit score. A hard credit pull is only performed once the loan is accepted and funded.

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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.