Tips for Getting Current on Your Student Loan Payments

Tips for Getting Current on Your Student Loan Payments

Sometimes, life can take unexpected turns that throw us off our financial path. Bills can pile up and ultimately turn into roadblocks to getting back on track. Clearing these hurdles can be daunting, but it’s certainly not impossible. If you’ve fallen behind on your loan payments, we have five tips to help you chip away at the overdue amount and get yourself back to current.

Please note that, while we have compiled some helpful information, Climb is not a financial advisor. You should consult a professional if you have any questions or concerns about your finances.

Track your spending

First off, you’ll want to compile a detailed account of what your expenses are, whether they’re groceries, restaurant visits, medical expenses, utility bills, coffee runs, or anything else. This way, you’ll be better able to determine where it’s possible to make cuts. There are multiple strategies for expense tracking — such as spreadsheets, banking and money management apps, receipt records, and more — so you can find the method that best suits you and your needs.

Create a budget

Once you know where your money’s going every month, it’s time to set up a budget. Figure out which expenses are necessary and which can be reduced in order to free up more finances for loan payments. Then, create a plan for how much is going to be spent each month on each item. If you need help starting and maintaining a budget, check out our list of helpful tools below!

Pay more than the minimum, if you’re able

Every amount you put towards loan payments gets you closer to paying off the debt as soon as possible. If you pay more than the minimum due each month, anything above that amount will go to the principal balance and lower the overall total. Of course, depending on your financial situation, it may not be possible to pay more than what’s owed, in which case it’s still important to make the minimum payment — but whenever you’re able, it may be beneficial to increase the amount you send.

Set up autopay

If you have trouble remembering to make a payment manually every month, it might be beneficial for you to sign up for automatic payments. This way, you won’t have to worry about losing track of the date, and a set amount will be paid automatically every month. Additionally, Climb borrowers receive a 0.25% interest rate discount, for as long as they’re signed up for autopay!*

Find a student loan counselor

Student loan counseling can be a useful tool when it comes to managing your finances. With a variety of both free and paid options available, you can look around to find the one that works best for you. However, it’s important to be cautious when signing onto a service and to be wary of potential scams — for more info on finding a counselor and what questions to ask when evaluating options, click the link below!

Apply for a deferral

A deferral is a temporary reduction in your student loan payments. While federal student loans work differently, with private lenders, availability and terms vary. It’s also crucial to keep in mind that interest typically accrues during the deferment period. Depending on the organization, you may need to apply with documentation showing your need for assistance. Then, once approved, your account can be brought to current as long as you adhere to the payment agreement.

*The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. This discount only applies to interest-bearing products, not 0% APR financing products.

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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.