Student loan firm Climb-s to $50m funding
Climb, a student loan fintech, has raised $50 million in lending capital from the Goldman Sachs Urban Investment Group, which makes investments in “underserved” communities in the US.
The new capital will allow Climb to provide more financing with “competitive interest rates and measurable return-on-investment for students”.
Since launching in 2014, the company has originated nearly $100 million worth of loans, funded the education of nearly 10,000 students and partnered with over 100 universities in career paths that have “strong earning potential in today’s economy” – with subjects like data science, healthcare, etc.
“[We will use] this lending capital to strengthen and extend our offerings so we can help new students, career-switchers and employees who need to up-skill,” says Angela Ceresnie, CEO of Climb Credit. “By aligning school motivations with student career and salary goals, we open the door for thousands of people who want to change their lives through education.”
According to Climb, millions of Americans are confronted with the choice between the significant burden of college debt or a life of low-paying work and job insecurity.
Climb uses a proprietary return-on-investment calculation to evaluate universities on their platform. The calculation takes into account factors including graduation rates, job placement rates, starting salaries and salary growth over time.
Climb was founded by Raza Munir, who happens to be a Goldman Sachs ex-employee.
Goldman Sachs is very active in the funding space.