Non-Degree Financing

Increasing Financial Support of Non-Degree Certificates Is a Key Step to Meeting America’s Skilled Labor Goals.

By Casey Powers, Climb CEO

In order to solve skills gaps in the long term, education and labor goals in the U.S. need to be more aligned. Congress has reviewed several recent bills aimed at creating more job opportunities for Americans, and one challenge that has been highlighted is the apparent disconnect between America’s labor goals and our education goals — two focus areas that I believe should have an inherent correlation. After all, a typical (or ideal) next step following an adult’s graduation from an education program is to apply those skills in a career, contribute to the community, and financially provide for themselves and their family.

One example of this lack of alignment is the recent infrastructure bill that was passed in order to develop much-needed road safety, transit, and broadband support across our communities and cities. This was a great win, and an important investment that will not only improve our infrastructure but also create more jobs. Creating more jobs is fantastic, yet if these jobs are in sectors where labor shortages are already rampant, then it’s also imperative that we have an equal focus on training more skilled workers to fill these roles. We’re seeing labor shortages in many industries required for this bill to be successfully executed — including manufacturing, construction, and transportation. However, noticeably absent from the funding of the final bill was additional workforce development investment.

This is not the only example of education and training conversations being siloed from labor needs. Following the infrastructure bill, the White House put out a statement on programs designed to increase trained truck drivers in order to address logistics and supply chain labor shortages. This is another great initiative that is necessary to help our economy. In the U.S. there are hundreds of CDL training programs run by local trade schools and career colleges that already have the infrastructure to train students, but they’re not given the same access to funding and financial aid resources as other education. Given that financial access to training is a top factor in determining a student’s ability to attend a program, increasing financial aid access for these institutions is a vital step toward opening doors to training and closing the skills gap.

To close these gaps, public and private stakeholders must focus on expanding access and capacity in the skills training market.

Increased pathways to these programs depend on access to affordable financing. While career training certificates are modestly priced compared to 4-year degrees, most programs still cost more than the average person has in their savings account — meaning that offering funding for these programs is critical to create access and increase the number of skilled workers who are getting trained and entering the workforce.

Funding for career-focused education programs can come from multiple sources, such as Federal Financial Aid, State and local Workforce Development, and the private sector. It’s important that all stakeholders involved prioritize increasing access to financing and financial aid to begin to solve this challenge.

Until we start to consider our country’s education priorities in the context of our labor priorities, these education programs will continue to be under-resourced and under-funded — leading to more skills shortages in our labor force.

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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.