Even when it comes to relatively inexpensive career training programs, not everyone can afford to make that initial investment of tuition dollars. If you’re looking for ways to help potential students afford access to your programs, here are a couple methods to break up the payment — student loans and interest-free recurring payment plans — as well as what’s different between them and how they will impact your learners.
Interest-free recurring payment plan
Many schools offer payment plan options for students who are unable to make the full tuition payment upfront. With these, payments are split up and spread out over the duration of a course.
Unlike a loan, a payment plan comes with zero interest, so your students will only owe the total tuition amount. It also doesn’t require a credit check, which means they won’t have to worry about their credit being impacted by either an initial credit pull or any potential late payments. However, with this option the payments are usually spread over a much shorter period of time than they are with a loan, so their monthly payments will be higher.
For schools interested in utilizing this method, Climb offers interest-free recurring payment options for partner schools — and we handle all collections and payment management, so you don’t have to worry about it!
This option is best for students who can afford to make higher monthly payments.
Student loans
A student loan can be a good option for people who need to make smaller monthly payments, rather than in larger payments or all upfront. While federal student loans may not be an option for your program, Climb is able to partner with schools to provide several different loan types. Depending on what you choose, we can offer loans with full deferral, interest-only deferral, or immediate full repayment. Additionally, we also offer 0% interest financing as well as standard interest-bearing loans!
There are some things your students will want to keep in mind before taking out a loan, though. While our 0% interest financing doesn’t, our Climb Loans come with an interest rate — meaning they’ll ultimately pay more than the total tuition. And for both types of loans, their credit will also be pulled for private loans, so their credit score may be impacted. However, Climb only does a hard pull after the loan is funded, so they’ll have the opportunity to apply with multiple co-borrowers to view their offers and compare rates!*
This option is best for students who would rather make the lowest possible monthly payments, even if it means paying more overall.
*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.