Climb Credit Raises $9.8 Million to Fund Students Attending Career-Focused Programs
CLIMBING UP THE LADDER: Climb Credit, a New York-based provider of private loans for students attending career-focused educational programs, has raised $9.8 million in a Series A round led by Third Prime and New Markets Venture Partners. Other backers include Acumen, Impact Engine, Two Culture Capital and Elizabeth Tse.
Founded in 2014, Climb Credit says it has originated more than $100 million in loans for students attending career-training programs, according to its press release. Unlike typical education loan providers, the company is selective about what schools its funds students to attend, opting for programs that prepare graduates for in-demand jobs in fields such as programming. It vets each program for proof of student outcomes and job placement rates.
Climb Credit’s interest rates generally range from 6 to 14 percent for loans repaid in 3 to 5 years.
To date, the company says it has funded more than 11,000 students, and currently works with more than 140 schools and career-training programs. Many are provided by non-traditional education providers, including General Assembly.
With the funding, Climb Credit plans on providing a new type of loan modeled after income-share agreements. These have become an increasingly popular form of deferred tuition, where students do not pay anything upfront but instead give back a fixed percentage of their income for several years after they graduate and land a job.