Key takeaways
The second disbursement only occurs if the student is on time with their loan.
If a student becomes past due, they can still receive the second disbursement if they return to on-time status before reaching 120 days past due.
Once a student’s account reaches collections, they are no longer eligible for any additional disbursements.
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Schools must verify enrollment through the Climb School Portal before Climb can release the second disbursement.
For programs that use Climb’s multiple disbursement loan structure, the student’s funding is released in two parts: an initial disbursement and a second disbursement.
When is the second disbursement released?
The second disbursement is only sent if:
The student’s account is in an on-time status, and
The school has verified continued enrollment through the Climb School Portal.
Once both conditions are met, Climb will automatically process the second disbursement.
What happens if the student is not on time?
If a student is not on time at the scheduled time of their second disbursement, the funds will be held until the student’s account returns to an on-time status.
The student can still become eligible again if they get back on time before reaching 120 days past due.
If the student reaches 120 days past due and the account is sent to collections, the student will no longer be eligible for their second disbursement.
School verification requirement
Before Climb can release the second disbursement, schools must:
Log in to the Climb School Portal.
Verify that the student is still enrolled in the program.
Once verification is submitted and the student’s account meets the on-time requirement, Climb will send the second disbursement to the school.
Example:
If a student’s second disbursement is scheduled for May 1 but their account is 15 days past due, the disbursement will not be sent. If they make the necessary payment and return to on-time status by May 20, and the school has verified enrollment, the disbursement will process as normal.
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