Climb’s data shows that collecting deposits leads to a 46-48% decrease* in the likelihood of borrower default for lower credit borrowers.
Climb Credit, a leading student lending platform focused on skills education, announced the launch of its new deposit collection feature, designed to give career-training schools greater control over enrollment and repayment outcomes without adding operational overhead.
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The feature enables schools to automatically collect and track student deposit payments through a seamless workflow integrated with the loan process. Once a student is approved for a Climb loan and accepts their offer, they receive an automated prompt to submit their school’s required deposit, with all payment tracking managed in Climb’s School Portal.
“Deposits are a key signal of student commitment, but schools have traditionally had to manage them separately from the loan process,” said Casey Powers, CEO of Climb Credit. “With this launch, we’ve streamlined deposit collection for schools and simplified the experience for students reducing friction and accelerating enrollment.
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Initial data from schools collecting deposits shows a 46–48% decrease* in the likelihood of borrower default for lower credit borrowers. This improvement is attributed not only to the upfront financial commitment, but also to a smoother path into auto-pay enrollment. When students submit deposits via bank transfer, those details can be automatically linked to Climb’s loan servicing platform making it easier to activate auto-pay and receive a 0.25% interest rate reduction.**
The new feature is fully integrated into Climb’s lending platform, meaning schools no longer need to manually invoice students or track payments across systems. Adjusting individual deposit amounts, verifying funding status, and accessing real-time student-level data can all be done through Climb’s School Portal.
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This launch adds to Climb’s growing suite of products aimed at improving access, outcomes, and operational efficiency for career training providers particularly in healthcare, skilled trades, and technology.
*Data calculated through an assessment or repayment performance on loans from 2Q23 to Q12025 with and without a deposit requirement. Assessment included Climb advance loans without a full deferment period and borrower FICO scores below 660. Data was collected across market segments including programs in Computer Sciences, Healthcare, IT, and Trade Schools.
**The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. This discount only applies to interest-bearing products, not 0%interest financing products.
Climb encourages students to do thorough research in selecting a training program that meets their unique needs. Details provided by Climb are for information purposes only and are not meant to qualify an institution or be relied upon in determining which institution is right for you.
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Source:globenewswire
