'Climb Credit' is Working to Change the Student Lending Model
Katherine Pendrill — April 13, 2016 — Social Good
References: climbcredit & techcrunch
'Climb Credit' is a startup that is looking to change the student lending model in the US. Instead of simply providing loans at lower rates or helping students refinance their loans, this company is aiming to help students earn a better ROI from their education.
Climb Credit was started by Zander Rafael, Amit Sinha and Vishal Garg as a way to mitigate some of the challenges of pursuing a higher education in the US. The company begins by identifying schools that are doing things to ensure graduate success such as charging lower fees, creating training programs that will teach skills needed for future employment and focusing on goals such as student outcomes instead of spending money on infrastructure. Climb Credit then used this database to underwrite the loans it makes.
The startup ultimately turns the traditional lending model on its head by using the idea of graduate success to help students finance their education.
Climb Credit was started by Zander Rafael, Amit Sinha and Vishal Garg as a way to mitigate some of the challenges of pursuing a higher education in the US. The company begins by identifying schools that are doing things to ensure graduate success such as charging lower fees, creating training programs that will teach skills needed for future employment and focusing on goals such as student outcomes instead of spending money on infrastructure. Climb Credit then used this database to underwrite the loans it makes.
The startup ultimately turns the traditional lending model on its head by using the idea of graduate success to help students finance their education.
Trend Themes
1. Alternative Student Lending - Climb Credit's innovative lending model for student loans that focuses on graduate success
2. Roi-focused Education - A trend for educational institutions to emphasize training programs and skills that provide a better ROI for students
3. Outcome-based Financing - A growing trend of financing models that prioritize graduate outcomes rather than traditional measures of creditworthiness
Industry Implications
1. Fintech - Opportunity for FinTech startups like Climb Credit to disrupt the traditional student lending market and extend their services to a wider range of underserved students
2. Education - An opportunity for educational institutions to revamp their offerings to provide more ROI-focused education and partner with innovative lenders like Climb Credit
3. Impact Investing - The potential to provide better student outcomes that satisfy both social and financial returns to investors interested in impact investing in the education sector
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