1) Is Climb a Risk‑Share lender?
Yes, the Climb loan does typically include a risk-share component. Most schools come to us for solutions because their student population is not getting approved by traditional student lenders. Our products are built to solve that challenge. However in order for us to be able to fund students that other lenders can not, we do often share the risk with the school.
- Risk‑share does not change the borrower’s loan terms. It’s strictly between the school and Climb.
2) Does Climb offer Income Share Agreements (ISAs)?
No. Climb’s standard offering for Title IV partners is private student loans, not ISAs.
ISAs are distinct from loans and have unique disclosure and servicing considerations. Climb does not originate ISAs for any of our school partners—including Title IV programs.
3) What’s the difference between Climb Loans and ISAs?
- How payments are determined
- Climb Loans: Flat interest rates and payments based on the student’s FICO score. Interest rates and APRs are clearly disclosed at the time of application and loan agreement signature.
- ISA: Student payments are a % of income for a set term, with caps/floors defined in the ISA. This makes payments variable for the student throughout the loan.
4) Is Risk‑Share the same as “Revenue Share”?
No. “Revenue share” typically means sharing a portion of tuition or top‑line revenue, which can implicate Title IV incentive compensation restrictions if tied to enrollments or aid volume. By contrast, risk‑share is tied to loan performance and is structured to avoid compensation based on performance of loans. Climb does not provide incentive payments to schools based on loan originations, approvals, or funding amounts.
5) Does Climb require Preferred Lender Arrangements (PLAs)?
No, you do not have to enter into a “preferred lender” agreement to work with Climb.
Title IV schools may work with private lenders without establishing a PLA. However, if a school recommends or endorses specific private lenders (including by listing them as “preferred”), then PLA rules apply (e.g., borrower choice, code of conduct, methodology disclosure, and annual due diligence. If you wish to enter into a preferred lender arrangement with Climb, you must strictly adhere to these rules.
6) Is Climb compliant?
Yes—Climb maintains compliance programs and controls appropriate to a national private‑loan provider.
We are a state-licensed lender, and comply with not only federal laws, but also state laws that govern our licenses. Our compliance framework includes policies, training, and oversight aligned to TILA/Reg Z, ECOA/Reg B, FCRA, GLBA, and UDAAP principles. For Title IV partners, we support PLA compliance, avoid co‑branding that suggests federal affiliation, and respect borrower choice.