How to Improve Student Loan

Tips to Help Your Students Strengthen Their Loan Applications

When your learners apply for a student loan, they’re looking for resources to help them reach their goals: further education, additional skills and competitiveness in the job market, and a step toward reaching their dream careers. And at Climb Credit, we want to increase access to the tools that will help make these goals a reality. If your learners are looking for payment options and wondering how best to increase their chances of approval, here are some tips to for them to hone their applications and open the door to more student financing.

Add a student loan co-borrower

If a student doesn’t initially qualify for a Climb loan, we don’t say just “we’re sorry, but you won’t get any financing from us.” Instead, we’ll ask them to reapply with a co-borrower — someone who signs onto the loan with them and agrees to pay if they become unable. For all Climb loans, if the co-borrower is fully qualifying, so is the borrower, regardless of credit history or income. So, applying with a co-borrower increases their chances of approval and even of getting a lower interest rate, as long as the co-borrower has a strong credit history. Your students will want to be sure, however, that both parties are fully aware of what is expected from a student loan co-borrower and what cosigning a student loan entails.

Check their credit report

Maybe a student wasn’t approved for a loan but is sure they have a good credit history. In that case, we encourage them to review their credit report. Everyone is entitled to one free credit report per year and can access theirs at annualcreditreport.com. Once they have a report, they can look to see if there are any errors. and if they do see a mistake which is adversely affecting their credit, they should reach out to the credit bureau to have the mistake corrected. Once the error is fixed, they can then reapply with a stronger credit history — which will in turn strengthen their student loan application!

But what if there’s a negative item on their credit report that isn’t an error? There may still be options for them! To remove accurate negative items from a credit report, they might be able to:

  • Send a pay for delete offer to the credit bureau: They can offer to pay off the full amount in exchange for having the negative item removed. While there’s no guarantee that this will be effective, some creditors may take them up on the offer.
  • Request a goodwill deletion: If they’ve already paid off the account and don’t have a payment to bargain with, they might try asking for a goodwill deletion. In this case, they’ll write a letter to the credit bureau asking for the negative reporting to be amended, describing why they were late and how they’ve since made consistently on-time payments. As with a pay for delete offer, creditors are not required to amend reports (although some may).
  • Wait for the time limit to expire: If none of the above methods work, your student can simply wait for the negative items to fall off their credit report. This will take some patience, though, and may not be helpful if they need financing soon — most negative items are on a report for seven years (except for bankruptcies, which last for ten years). Fortunately, negative items carry less weight as time goes on and other, positive items are added to their report.

Have all necessary info on hand

Upon the initial application, your student will be asked to provide some information about themselves and the program they’re attending, so they’ll want to have everything they need handy. This can vary by lender, but most will ask for info such as name, address, social security number, and more. For a Climb application, they’ll need:

  • First and last name
  • Email address
  • Home address
  • Phone number
  • Date of birth
  • Social security number
  • Program information (school name, campus, course name, start date)
  • How much they want to take out in a loan

If they’re adding a co-borrower to the application, they’ll also be asked to enter the co-borrower’s personal information as well. So they should make sure to have the contact info, annual income, and social security number of their co-borrower available when they apply!

Is you student unsure of whether they have all the necessary info? They can use the checklist below to find out!

Although there’s no magic formula that guarantees every single applicant receives a student loan, following the tips above can strengthen your students’ applications and could give them the boost they need to reach that approval offer. Additionally, Climb team members are available for any advice, assistance, and information they need to help them complete a successful application.

Curious what financing options Climb has to offer?

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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.