How Should I Pay for School

Loan vs. ISA: Finding the Financing Option That Works Best for You

Not everyone can afford to pay for their education upfront — even when it comes to the relatively inexpensive career training programs, which can still cost thousands of dollars. So, if you’ve decided to build your skills and enroll in a training program, you may find yourself wondering what payment options you have, and which one is right for you. Two common options for those who need to break up tuition into smaller payments are student loans and income share agreements (ISAs) — but which one you choose will depend on your own unique situation and which terms you feel most comfortable with. Below, we outline the difference between a loan vs. ISA and how either may work — along with a quiz to help you find the right payment method for you!

Loans

For those who would rather split up tuition into steady payment amounts, a student loan can be a good option. Depending on the products available for each program, Climb loans can include either full deferral, interest-only deferral, or immediate full repayment — as well as short-term, 0%-interest loans or longer-term loans which do include interest.*

When deciding which loan product to use, it’s important to keep in mind both your financial situation and your goals. Can you afford higher monthly payments in order to pay less overall, or would you rather make lower monthly payments, even if it means paying more in interest? Will you need additional funding for living expenses? Answering these questions before proceeding will help make sure you’re making the right financial decision for you.

Fortunately, Climb only performs a hard credit pull once a loan is funded, so you can submit an application with no impact to your credit score!** This way, you can check what your payments will look like without making any commitment.

There are two key things you’ll want to keep in mind before taking out a loan. Most loans come with an interest rate, so you’ll ultimately pay more than the tuition amount. And for private loans, your credit will also be pulled, so your credit score may be impacted. Remember, most private lenders pull credit upon application, but Climb only does a hard pull after the loan is funded, so you have the opportunity to apply with multiple co-borrowers to compare rates.

Loan benefits

  • Payments are laid out over the course of the loan term, so you know exactly how much you’ll pay each month — no surprises.

Loan drawbacks

  • You will still owe payments if you don’t find work.

ISAs

Some programs also have the option of an income share agreement. With an ISA, you won’t have to make any tuition payments until you find a job, and in some cases are also earning above a minimum income threshold. Once you’ve reached the employment threshold, you’ll make payments based on a fixed percentage of your income, until you pay a maximum amount or number of payments.

You’ll want to keep in mind, though, that the amount you pay will increase as your income increases — so if you find a well-paying job, you may actually end up paying much more. It’s also important to note that ISAs are relatively new, which means they’re lesser-known and lesser-regulated. Because of this, they don’t have the same protective regulations that student loans come with.

ISA benefits

  • You’ll have for possible unemployment or underemployment — if you don’t get hired within a certain timeframe, you won’t pay.

ISA drawbacks

  • There is a potential for higher payments, and the total tuition paid once employed.

Which should I choose?

Asking questions is key when it comes to weighing your tuition payment options. Talk to your school’s administrators about what’s available for each program. Reach out to loan providers for their interest rates, fees, and length options. Research expected salaries for your prospective career to get an idea of what you might be making vs. what you might be paying. At the end of the day, the more you understand your goals, your current financial situation, and how the terms of each product will affect both, the better able you’ll be to make a sound decision for yourself.

Take our quiz to find out which payment option is best for you!

Loan vs. ISA

* Interest rates are fixed from 6.99%. Actual interest rates may vary based on a number of factors.

APRs on loans range from 0.00% – 36.00%. An annual percentage rate (APR) is the annual rate charged for borrowing and is expressed as a percentage that represents the actual yearly cost of funds over the term of a loan. The APR includes the 5% origination fee. 0% APR loans are only available at schools which have elected to offer that product. Missouri borrowers: APRs on loans for range from 0.00% to 26.47%. The APR includes the origination fee, which can be up to $100. Minnesota borrowers: APRs on loans for Minnesota borrowers range from 0.00% to 21.75%. The APR includes the 5% origination fee

**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.