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Understanding Multi-Disbursement Loans

Updated

Some programs receive tuition funding in multiple installments, called multi-disbursements. This article explains how multi-disbursement loans work, what to expect, and how to manage them in the School Portal.

How do multi-disbursements work?

Multi-disbursement loans are typically used for semester-based programs or Title IV schools.
They allow a student’s total loan to be split into multiple disbursements (or “tranches”), instead of releasing the full amount upfront.

Here’s how it works:

  • Students are approved for the full loan amount at the time of application.

  • The total tuition is disbursed to the school in up to three parts.

  • Each time a disbursement is made, the student’s loan balance and monthly payment update to reflect the new amount disbursed.

  • This structure helps:

    • Students avoid accruing interest on the full loan before they’ve used all funds.

    • Schools recognize receivables over time as students progress through the program.

Note: If a student is not on time with their payments at the time of a scheduled second or third disbursement, the disbursement will not occur until the student has caught up. If a loan reaches 120 days past due or goes to collections, no additional disbursements will ever be released.

How many disbursements are possible?

Currently, Climb supports up to three disbursements per loan.
All disbursements must occur within a 12-month period from the first disbursement.

Can I determine the percentage or amount for each disbursement?

Yes. Schools can set either:

  • A percentage of tuition for each disbursement, or

  • A specific dollar amount for each disbursement.

This can be applied by program or as a school-wide standard.
However, disbursement schedules cannot be customized for individual students.

Where can I find information on disbursements and amounts released?

You can view disbursement details in the School Portal:

  1. Go to the Active section.

  2. Download the .csv file.

  3. Review the columns for scheduled disbursement dates and amounts, as well as actual disbursements made.

How do I submit a refund for a multi-disbursement loan?

To request a refund:

  1. Locate the loan in the School Portal.

  2. Leave a comment indicating that you’d like to issue a refund and include the new tuition amount.

  3. Climb’s team will initiate the refund and issue an invoice if any advance funds need to be returned.

Are there any restrictions I should be aware of?

  • The school must verify each disbursement in the portal before it can be released.

    • These will appear under the “Ready to Verify” section when available.

  • If the student is past due on their loan, disbursements will pause until payments are current.

  • Students 120+ days past due or in collections will not receive future disbursements.
     

 

 

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