Climb Credit raises $ 9.8 million to fund students in career-focused programs
CLIMB THE LADDER: Climb Credit, a New York-based private loan provider for students participating in career-focused educational programs, raised $ 9.8 million in a Series A round led by Third Prime and New Markets Venture Partners. Other funders include Acumen, Impact Engine, Two Culture Capital, and Elizabeth Tse.
Founded in 2014, Climb Credit claims to have provided more than $ 100 million in loans to students participating in vocational training programs, according to its press release. Unlike typical student loan providers, the company is selective about which schools it funds for students, opting for programs that prepare graduates for in-demand jobs in fields such as programming. He reviews each program to prove student results and placement rates.
Climb Credit interest rates typically range from 6-14% for loans repaid in 3-5 years.
To date, the company claims to have funded more than 11,000 students and is currently working with more than 140 schools and vocational training programs. Many are provided by non-traditional education providers, including the General Assembly.
Along with the financing, Climb Credit plans to provide a new type of loan inspired by revenue sharing agreements. These have become an increasingly popular form of deferred tuition, where students pay nothing up front but instead give back a fixed percentage of their income for several years after graduating and getting a job. .