Climb Credit Enters Into $130 Million Loan Purchase Agreements
Deal Bolsters Student Lender for ROI-Based Education
NEW YORK, Oct. 19, 2017 /PRNewswire/ -- Climb Credit, a student lending company that expands access to quality education for the new economy, today announced that it has entered into agreements with investors to purchase $130 million of student loans originated by Climb Credit.
The transaction will enable Climb Credit to continue expanding its student loan programs beyond its current network of software development, UI/UX design, robotics, welding, nursing, and other skills-based programs in additional high-earning fields. Climb Credit's focus is to transform the higher education paradigm by providing better access and affordable funding to students to attend schools that consistently demonstrate a strong return on investment (ROI) for their students.
"This transaction is further testament to our innovative approach of building a student lending platform focused on quality skills-based programs that increase their students' earning potential. Thousands of students have leveraged our platform to access schools and, with this transaction, we'll be able to offer it to thousands more," said Zander Rafael, Chief Executive Officer and Co-Founder, Climb Credit. "When Climb aligns the incentives between students, school and lenders, everyone succeeds."
"We are pleased to add Climb Credit to the list of digital finance origination platforms that have been approved for our private investment funds. Climb Credit's introduction of digital lending into the skills-based education market fits well with our vision of an ever expanding digital finance investing ecosystem," said Hadi Habal, Co-Founder and CEO of HCG Funds, one of the investors in the loan purchase agreements.
Climb Credit is also continuing to work with Ferry Farm Capital who has been a financing partner of the company since its inception.
Higher education is broken in the United States, which has led to massive student loan debt and a major job skills gap. The average college student graduates with over $37,000 in debt from a four-year university.1 Depending on the program, some graduates struggle to find a job with earnings high enough to afford to pay down their debt. In contrast, Climb Credit focuses on the education most in-demand for the new economy and that provides a high return to students. Network schools are vetted based on a myriad of criteria, including: job placement rate, salary after graduation and program cost. The average student's salary increases by 44% at graduation from a Climb Credit financed education, based on program type and industry. Climb Credit is committed to treating education as an investment, with capital deployed smartly and with the expectation that it will deliver a return.
For more information, visit www.climbcredit.com.
About Climb Credit
Climb Credit is a student lending company that expands access to quality education for the new economy. Based in New York, Climb Credit partners with programs and schools that consistently improve their graduates' earning potential and demonstrate a return on investment, with schools ranging from IT, coding and data science to healthcare, welding, and heavy machine operations. The company provides schools with the opportunity to offer affordable financial aid to all students––regardless of credit profile––because Climb Credit believes in the life-changing (and wage-growing) power of the education programs they finance. Climb Credit's mission is to change the higher education paradigm by providing accessible funding to students pursuing high ROI education. For more information, visit www.climbcredit.com or follow @ClimbCredit on Facebook, Twitter and Instagram.
About HCG Funds
HCG is a FinTech Asset Manager and pioneer in the emerging digital finance asset class. Our investment philosophy is grounded on our mandate to deliver absolute returns over the long-term risk premium from short duration private credit. HCG was founded in 2009 and since 2012, has been at the forefront of formulating investment programs around Internet and marketplace lending platforms to institutional investors. We integrate deep, data-driven financial expertise, leading-edge technology and engineering to power our investment process. For more information, visit www.hcgfunds.com.
About Ferry Farm Capital
Ferry Farm Capital manages a family of direct lending funds that provides access to investment opportunities across the consumer lending space. Our unique technology suite allows Ferry Farm to identify and execute consumer debt focused principal finance investments. For more information, please visit our website at www.ferryfarmcapital.com.
Media Contact
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JCUTLER media group
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1 https://www.forbes.com/sites/zackfriedman/2017/02/21/student-loan-debt-statistics-2017
SOURCE Climb Credit
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