Maximum Opportunity Financing (MaxOpp) is Climb’s non-recourse loan product designed to help schools sustainably enroll more students from the lower end of the credit spectrum. By offering MaxOpp alongside other Climb products, schools can expand access for students who would otherwise be declined — often increasing approvals by 15% or more.
This article explains how MaxOpp works, what schools can expect, and how tuition payments flow.
What is Maximum Opportunity Financing?
MaxOpp is a non-recourse loan program created to support students who fall outside traditional credit underwriting. It gives schools a way to enroll more prospective students while still receiving meaningful upfront cash from Climb.
Because MaxOpp is funded based on actual student payment performance, schools gain access to a new population of underserved students with significantly reduced enrollment risk.
How Maximum Opportunity Financing Works
Climb collaborates with each school to set underwriting criteria that typically result in up to ~80% approval rates.
Here’s how MaxOpp functions once students apply:
MaxOpp appears only for students who would otherwise be declined for traditional Climb products.
When a MaxOpp student makes their first two scheduled payments on time and in full (the advance condition), Climb sends an advance equal to 40% of the tuition financed during the next funding cycle.
The combination of the student deposit (if applicable) plus this advance often totals 50% or more of tuition up front.
As students continue to make payments, Climb remits funds monthly to the school until the tuition financed amount is fully paid (subject to the waterfall structure below).
This structure allows schools to receive significant upfront cash and, for successful students, the full tuition amount over time.
Servicing Fees
A 4% annual servicing fee, charged monthly, applies to all funded MaxOpp loans.
Fees on unfunded loans remain outstanding.
Underwriting Criteria
MaxOpp does not use traditional credit underwriting.
Instead, Climb works with each school to set custom criteria — typically resulting in 15%+ incremental approvals.
Student Interest Rates
Students approved for MaxOpp receive interest rates between 18% and 22%, depending on the school and program.
Can Students Choose MaxOpp?
No. Students cannot select MaxOpp.
It is automatically offered only to applicants who do not qualify for other Climb loan products.
How Payments Flow to Schools (Waterfall Structure)
Once a loan is funded and the initial 40% advance is sent:
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Monthly student payments begin flowing through a waterfall:
Schools receive either 20% (for an 80/20 investor agreement) or 10% (for a 90/10 investor agreement) of remaining student payments until their tuition financed amount is paid down.
Once the investor is fully paid off, the school then receives 100% of payments (net of Climb servicing fees).
Any remaining cash flows after tuition and fees are satisfied become Climb-earned revenue.
What Is the MaxOpp “Advance Condition”?
The advance condition defines when Climb sends the upfront 40% advance to the school.
Currently, it requires:
The student makes their first two scheduled payments,
On time,
In full.
Once met, the advance is included in the school’s next funding cycle.
What If a Student Fails the Advance Condition?
If the student does not meet the advance condition:
Climb will not send the 40% advance.
Climb will remit only the payments received to date, and future student payments (net of fees).
Schools then have two options:
Option 1: Refund & Withdraw
The school may refund the loan in full, effectively canceling it.
Schools often choose to withdraw the student if no alternative payment method exists.
Many schools disclose this policy in their enrollment agreement.
Option 2: Keep the Loan Outstanding
If the school does not refund:
Climb continues to service the loan.
Climb remits ongoing student payments (net of fees).
The school, however, remains ineligible for the advance.