After Climb has worked with your school to set underwriting criteria (up to 100% approval), this product will be available to applicants who otherwise wouldn’t have been approved for other Climb loans. The reason we can support these students (and provide an advance to your school) is because we’ve created this product to be funded based on actual student performance, not predicted performance like other loans.
If a student makes their first two payments (the “advance condition”), Climb will then advance 40% of the tuition financed in the next funding cycle. The aggregate amount of the deposit and the 40% advance can often be upwards of 50% of the tuition amount. This allows the school to offset a number of costs associated with enrolling and teaching, heavily reducing the risk of student enrollment.
Thereafter, the school will also continue to receive monthly remittances from Climb (as long as students are paying) up until the tuition financed amount. Consequently, schools can receive the full tuition on successful students with a significant amount of cash up front.