Student Loan Living Expenses

Student Loan Living Expenses: Frequently Asked Questions

By Billy Stafford

One of the problems you may have to solve when completing a student loan application is deciding whether to borrow for your cost of living, and if so how much. We here at Climb Credit want to make sure you have the right information and support in order to best solve these problems. Below are three frequently asked questions we get from borrowers relating to student loan living expenses. If you have asked yourself the same questions, we encourage you to review our answers!

How much can I borrow for living expenses?

The answer to this question is most often dependent on the school you attend. Typically, the maximum amount you can borrow for living expenses is around $3,500 to $4,000. If you are unable to select any value for cost of living financing in your Climb Credit application, we recommend reaching out to your school contact and expressing your interest in borrowing for living expenses.

How much should I borrow for living expenses?

The simple answer: only what you need. It’s important to keep in mind that any money you borrow you will have to repay, along with the interest that accumulates while the loan is still outstanding. Take into consideration that while you are in school, you may find yourself spending far less than you do now because you will be replacing leisure activities with time spent in class and studying.

We suggest sitting down and creating a budget for yourself that spans the time you are in your program and a period of time after your program ends — typically we see people use three months, but it depends on your personal situation. Your budget should include housing (usually rent), food, utilities, transportation, equipment for your course (computers, books, etc), and medical expenses. Once your budget is complete, we typically see students use savings to cover expected costs and request living expense financing to help out with the remaining expenses.

For example, if you have $1,800 saved up, and you anticipate you will need approximately $3,000 to cover the costs of housing, food, and transportation while you attend your program, you might want to borrow $2,000 instead of the entire $3,000. By using your available savings, you can still afford your living expenses while potentially saving money that may have gone to financing charges!

There are many great free tools available online if you are having difficulty estimating how much you will have to spend on a monthly basis. This calculator is an example of a (free!) resource that can help you determine how much to budget based on where you live!

When will I receive my living expenses funds?

We at Climb work hard to send out funds as quickly as possible, after the school has provided confirmation of attendance. Given that this process can take some time, we always suggest that you have enough savings to cover your expenses for the first month you attend your program.

Your success is paramount to us — we want you to have every opportunity to achieve your goals! If you’re still unsure about how much you should borrow for living expenses, remember that you can always contact Climb Credit via live chat, email, or phone!

Looking for student loan living expenses? Click below to learn more about Climb!

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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.