EKMH Innovators Interview Series
An interview series spotlighting global tech influencers, disruptors, visionaries, and of course, innovators.
Since launching, New York-based Climb Credit has focused on three key principles: to leverage a proprietary diligence process, requiring all partner schools to provide data confirming valuable outcomes for their students at a reasonable price; to partner with schools that participate in the loans alongside Climb; and the obligation on a student loan after graduation should be affordable. Climb Credit's mission aims to change the higher education paradigm by providing accessible funding to students pursuing high ROI education.
Climb works with more than 175 U.S. schools -- and over 17,000+ students-- in 49 states across many different academic disciplines, all leading to careers for today’s economy. The fintech platform recently celebrated a $9.8M Series A funding round led by Third Prime and New Markets Venture Partners with participation from Acumen, Impact Engine, Two Culture Capital, and Elizabeth Tse—alongside existing investors including 1/0 Capital, Learn Capital, Montage Ventures, Hill Hedge Funds and Michael Sidgmore. Last year Climb received $55M financing from the Urban Investment Group at Goldman Sachs to continue serving the schools and students seeking professional training and higher education.
In 2011 Angela Galardi Ceresnie co-founded and served as CFO of Orchard Platform, a leading technology provider to institutional investors, money managers and loan originators in the Marketplace Lending sector which was later acquired by Kabbage. Since 2018 University of Michigan engineer Ceresnie has helmed Climb as its CEO and COO, helping provide simple, fast, and affordable loans to students.
I had the pleasure of interviewing Ceresnie while she the CFO at Orchard and like many, were thrilled when she took on her CEO role at Climb. In addition to her CEO position, Ceresnie also works as Climb’s COO and as a Senior Advisor at EVEN Financial. Via email Ceresnie shared her candid insight on a variety of topics including the effect of the coronavirus in the sector, alternative education, university “degree necessity” and education financing. Our interview follows.
EKMH: How do you anticipate that the coronavirus will affect your students and school partners—or how has it already?
Angela Galardi Ceresnie: Over the past few weeks, the coronavirus has created a lot of uncertainty for everyone, so our number one priority is ensuring that our learners and school partners are able to stay safe and healthy—and feel secure. Many of our school partners are able to move their programs online and some have already done so for upcoming classes.
We know our school partners will deliver an excellent learning experience remotely, and we will continue to deliver the same level of service—to both them and their learners—with our team at Climb fully remote as well. That said, we are aware that the situation is evolving at a rapid pace and we are continuing to monitor the impact on everyone—particularly our learners. We're also continuously gathering feedback, and will continue to iterate on how we respond to ensure that we are delivering the services that our partners and learners need.
EKMH: Climb’s mission aims to help people gain access to affordable education programs that teach in-demand skills for today’s and tomorrow’s economy. Since 2014 Climb Credit has offered incentive-aligned loans with a risk-share component as a solution. How did/ does Climb convince partner universities to share this mission?
Angela Galardi Ceresnie: Through aligning incentives with the school, Climb, and the learner by not offering 100% up-front, we’re able to approve more students than typical private lenders. This helps our partners increase their enrollments and enables students who otherwise might be turned away to have access to their career-advancing programs. In a sense, increased enrollment ultimately translates to increased tuition revenue, and that's what we are helping solve for.
We also aren't like other lenders that just give access to the top credit tiers (which narrows the pool of potential enrollees at any given school). What's great about Climb is that we've figured out a way to give access to every student — we only ask that the school participates in that along with us. In the end, it's a win-win-win for everyone: for Climb, our partners, and our borrowers.
EKMH: In what other ways can you lead Climb to address education issues and offer other options to borrowing learners?
Angela Galardi Ceresnie: Climb’s goal is to both show alternative options for post-secondary education and increase access to that career-advancing education. There is an obvious cost barrier to many programs which stops many people from pursuing education programs that can change their lives for the better. I think it’s important as a lender to always keep the learners in mind when making decisions for new products that will help fund the programs that will help their careers in the future. We are constantly thinking of new ways to help our learners when it comes to how we finance these programs and what types of repayment plans work best for them.
EKMH: How can the US better highlight opportunities that do not [necessarily] require college degrees and cultivate a market for skill-centric education?
Angela Galardi Ceresnie: While on the local level state governments have been increasing investments in skills-based programs, and on the federal level they’ve taken steps such as declaring this past February Career and Technical Training Month, I still think public K-12 schools can be doing a better job at promoting the idea that college/university education isn’t the “automatic” next step after high school.
I believe there is still this unwarranted stigma around not going to college after high school graduation — and parents, school administrators, student lenders, and every stakeholder in the higher education community needs to open up the conversation around what is right for the student not what is the “status quo”.
EMKH: On the workforce and hiring side, Climb has initiated programs to change this “degree necessity” by not requiring college degrees for its own employees. How would you recommend that other companies adapt a similar approach and start down the path of “skill-centric” hiring?
Angela Galardi Ceresnie: I think the method is simple: emphasize the skills and experiences a candidate has over the degree they may or may not have. College students nowadays are encouraged to get online excel certifications and internships to show employers that they have the knowledge and experience for the job, so what’s to say a person that isn’t currently enrolled in a 4-year degree program can’t get the same certification or the same internship?
The schools and programs we actively partner with prepare students for the workforce with the skills they’re teaching. They are constantly updating the curriculum to reflect industry shifts and what companies are looking for at any given time. Hiring managers and companies in general need to accept that skills are not only established and gained in the college classroom setting, but also through alternative paths and experiences.
EKMH: What recommendations do you have to ignite education reform that will drive innovation and elevate alternatives to the traditional four-year degree?
Angela Galardi Ceresnie: Talk about it! I read articles about it all the time, but still people don’t know enough about alternative education. Also, by opening up job opportunities beyond just to 4-year degree holders (like Climb has done), people will be less inclined to feel like they have no other choice but to get a 4-year degree. With the right blend of financial support and maintaining the dialogue within this industry I feel we can break the stigmas around alternative education and motivate others to be a part of the reform.
Distribution of Education Prior to Career Training
EKMH: According to a study by Burning Glass Technologies, the average graduation rate is still only at 60%—meaning 40% of people who take out loans for college aren’t even getting the degree for which they paid (and for which they will be indebted). Of those who graduate, 43% are underemployed in their first jobs, and 2/3 of those remain in jobs that don’t require college degrees. That written, describe the optimal four-year education consumer? Who do you think is best-suited to “buy” an education?
Angela Galardi Ceresnie: There is a lot to be said about the statistics around graduation rates and the students who are in debt with no profitable degree to show for it. I think we need to start educating younger people looking to further their education about what it means to take out debt and the degrees they plan to be paying for. Question to consider include: What are the average salaries for specific degree holders? What industry do I want to get into, and how would various degrees or certifications help me advance in that industry? Do I need a bachelor’s degree to get the career I want?
All of these questions have something to do with how people are going to be paying back those debts and if the loans are worth it in the first place. For a person who wants to pursue something in the healthcare field, maybe a bachelor’s degree or higher is required to work in certain positions, but what if a person wants to be a medical assistant—or even just wants to start as a medical assistant to make sure he or she enjoys working in healthcare? I don’t think there is one singular model or “best-suited” person for an education. I think education is very dependent on the students, what they want for themselves, and if they know all their options to the full extent we can explain it to them.
EKMH: Should universities provide clearer incentives to ensure strong outcomes for their graduates? If yes, how would they do this? Should US universities be responsible/ held accountable for their graduates’ financial independence? Again, if yes, please describe how this could be implemented.
Angela Galardi Ceresnie: Transparency is key for any schools who want to sell their programs through outcomes. Students need to trust the program for which they’re paying. If a school is not providing good outcomes for students, I believe that is a sign for the school to either update its curriculum to fit what is necessary for the intended workforce or make adjustments to how it is helping students get placed in jobs after graduation.
U.S. universities need to be responsible for the success of their students. Many universities in this country are almost guaranteed money before students even start their first semester classes. By re-incentivizing how universities receive their tuition and sharing that risk of investment, schools will have more of an incentive to help their students land jobs they want and that pay well.
Creating loan programs, such as those that Climb offers, are a good step in the right direction. If smaller educational programs, like the partners we currently have, can do it, universities and colleges can do it too.
EKMH: Nearly twenty years later, you are still paying off your own student loans. Knowing what you know now about the college, workplace and debt experience, would your approach to choosing a university and major change?
Angela Galardi Ceresnie: That’s a tough question to answer - one decision I would have made differently would be to be more strategic with the loans I did take. I don’t think I fully understood what the monthly cost would be on my loans, and when that cost became evident to me (after graduating!), it was surprising and daunting. I’d also say that I went to a state school, paying in-state tuition nearly 20 years ago, so my experience is also likely very different than that of someone who is going through the process today.
Given the changes in the market (both employment market and education market), when I think about my own kids’ futures, I want them to understand the reality of the college system, and to seriously consider career paths that don't involve a four-year degree if that is what makes sense for them.
EKMH: And last but not least, please recommend a few books from your “Must Read” list!
Angela Galardi Ceresnie: Getting Things Done by David Allen - it’s a great guide to improving your productivity and organization which then frees up your mind to do the “real” work!
**Readers, best wishes for your continued good health and safety. Please stay home and take care. #dontbeaspreader