Student Loans Career Training

How a Student Loan Works for Career Training Programs

Having diverse payment options available — such as interest-free recurring payments or student loans — can be an important factor for increasing access to your school. If you’re a career training program without Title IV funding, though, you may be wondering how a student loan for your school would work. Below, we take a look at Climb’s process for your prospective students, from initial application to funding, and break down what they and you can expect to find at each step of the way.

Step 1: the application

The first step of a student loan is the application. This can vary from lender to lender, but for private lenders in general (like Climb), your students will want to make sure they have their personal information and program information on hand when applying. Many private lenders will also pull their credit, as approval is often based on an applicant’s credit history — however, with Climb loans, we only perform a soft credit pull upon the initial application. We don’t perform a hard pull until a loan is funded, so your students can apply to check their rates with no impact to your credit score!*

Then, once an application is submitted, your admins will be able to use our school dashboard to stay up-to-date on applications, request any necessary updates, and reach out to our team with comments and questions.

Step 2: the loan documents

After an application has been approved, the student will be sent several documents containing important information about their loan. These include the Approval Truth in Lending Disclosure, which has a breakdown of what they’ll pay and when payments will be due; the Master Promissory Note, where they can find all the responsibilities they’ll have as a borrower and all the terms of the loan they’re agreeing to; and an Auto-Debit Authorization Form (ACH), which authorizes automatic loan payments to be made from their bank account. If they have a co-borrower, they’ll also receive a Notice to Co-Borrower, which contains all the necessary information about cosigning a loan.

In the dashboard, you’ll be able to see an applicant’s status and which documents (if any) still need to be signed. Your students will want to read all these forms carefully before signing, and once they do, their application fully submitted!

Step 3: sending the funds

After all the necessary forms are properly signed, the loan will be finalized. The next step is for the student’s enrollment to be verified by your school in the dashboard and for funds to be sent. While for some loans, money is sent to the student and it’s up to them to give the tuition to you, Climb sends funds directly to schools. So, after the loan is finalized, your school simply needs to verify students on the enrollment verification date, and your students won’t need to take any action until it’s time for to start making payments.

Interested in adding more payment options for your students?

*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.

Leave a Reply

Your email address will not be published.Required fields are marked *

Subscribe to get more info sent straight to your inbox!

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.