Raise Student Loans Review

Raise is a relatively recent private student loan lender, providing trustworthy and appreciable services. Read through the application procedure and features this recently introduced loans.

Updated by Theres Ann on 20th July 2019

Raise came up from Cognition Financial founded in 1991. This group aimed at widening student access to financing. The company funds loans for itself and also works in coalition with lenders including SunTrust Bank and Kinecta Credit Union.

A few of the other student loan products include Custom Choice Loan, Graduate Business Loan, Union Federal Private Student Loan, and Kinecta Private Student Loan. Borrowers who only want money wouldn’t know what they are getting into exactly.

The extra cost involved such as textbooks, computers, transportation, housing, lab fees and more can also be included in the Raise Student Loan. Raise insists on having a cosigner if in case you do not have a job or a strong credit history.

Table of contents

Who can apply?

All irrespective of their professions or backgrounds will be able to apply to this program.

Any US Citizen who is a permanent resident of Alabama, Arizona, Arkansas, Colorado, California, Florida, Indiana, Georgia, Maryland, Minnesota, Mexico, Missouri, Nebraska, New Hampshire, New Jersey, North Carolina, Ohio, South Carolina, Tennessee, Texas, Washington or West Virginia, and also if you are not a cosigner, but a permanent resident of Wisconsin.

You should also be attending an eligible college or university for at least half a time. The first section of the application contains a list of eligible schools. You should either be earning or have a co-signer instead.

You should also be able to enter into a contract at the time of application. You should also be able to meet credit and other guidelines at the time of your application.

1) Features of Raise Student Loans

The fixed rates of Raise Loans range from 5.33%-15.73%. The loan terms for the same vary from 5, 7 or 10 years and the loan amounts range from $1,000-$65,000.

We know that Federal loans are the best when it comes to student loans because federal loans have lower interest rates than private student loans.

2) Why do borrowers choose the Raise Student Loans?

Borrower protections and favorable repayment options are also granted to the borrowers by federal loans.

However federal loans would not just be sufficient to cover the cost of tuition and living expenses.

Thus it becomes necessary for borrowers to consider private student loans. In this situation, Raise Loans will be a good option for you.

Private student loans are granted to creditworthy borrowers, who would need additional help in covering their college costs and the related expenses.

3) What makes Raise Student Loans stand out?

Raise uses traditional lending criteria to generate a credit score or use a cosigner to apply for the loan.

Raise also promotes a simplified underwriting process. The loan application can be made online and the process only takes nearly 10 minutes.

After filling in the basic information you can choose between various loan and related repayment options.

Additional information might be sent to confirm your information on the application. Interest rates range between 6.317% and 11.225% APR.

The rate of your qualification depends on your credit history and your repayment options.

As the rate is variable you should be prepared for the monthly payment amount to vary at times.

You can choose to make repayments immediately after taking out the loan or to make interest-only payments while one is at school.

4) States in which Raise Student Loans delivers its service?

States including Alabama, Arizona, California, Arkansas, Florida, Colorado, Georgia, Maryland, Indiana, Minnesota, Massachusetts, Nebraska, Missouri, New Hampshire, New Jersey, New York, New Mexico, North Carolina, South Carolina, Ohio, Texas, Tennessee, West Virginia and Washington receive benefits and services of the Raise Loans.


There are several reasons why Raise Student Loans are selected by borrowers.

The benefits of the Raise Loans are given below.

  • The easy underwriting process is one of the biggest benefits of Raise Loans. The whole process of the application happens online and you’ll have to verify if you are approved for a loan.

  • The origination fee is changed and this, in turn, reduces the overall cost of your loan.

  • Traditional underwriting criteria are used by Raise and no alternative underwriting criteria are used.


Every lender would have a set of drawbacks. People tend to choose lenders whose benefits outpour the drawbacks.

Some of the criticisms that the Raise Student Loan have faced are given below. 

  • Getting approved for a student loan would be difficult because of the lack of strong credit history. In this case, they would most often have to depend on cosigners to prove their ability to repay the loan.

  • An incredible amount of financial risk is usually taken by a co-signer to support the loan. Thus there are times when not even the parents of students are either unwilling or unable to pay the loans.

  • Loans from Raise cannot be deferred until the graduation of the student. Thus it becomes a difficulty of some borrowers to immediately begin repaying their loans, even though only interest payments are to be made. No principal amount has to be repaid.

  • Raise is also not available in every state. Refinancing your student loan through Raise would hence be difficult.

  • To win a good deal, it is necessary to understand student loans really well.


Comparison of rates with other private student loans is necessary to get the lowest rate.

The lowest interest rate can also be found with other lenders especially if the borrower has good credit.

Multiple opinions from different lenders are required before you commit to anything. Any possible grant options or scholarships should be used up before applying for any private loans.

Though Raise Loans are worth considering, you should consider several other possible opinions before applying to the Raise Loans.

It is likely that most students would not have extra spending while they are in school and hence non-deferment until loans until graduation will be difficult.

With an increasing student loan debt, it is necessary to find the best solution for your loan related problem.

How to apply

The steps involved in the application process is given below. 

Step 1 - Application Submission

Information including name, birth-date, social security number, State issued ID number, Current home address, phone number, email-id, income, and debt payments are to be submitted along with the application.

Additional documentation including documents of tax returns, bank statements, pay stubs, and more can help loan underwriters to verify your income.

Bank statements are also proof of how much you owe and the amount you are paying each month.

Cosigners are also allowed to pay your amount. If you are able to afford your loans, then your loan will be approved.

Step 2 - Accepting the terms of loans

Once your loan is approved, the time is apt to accept the terms of the loans. A few offers with different repayment terms and interest rates will be offered.

The amount of monthly payment should also be mentioned. The offer and its acceptance conditions should be considered.

When your loan is accepted, a complete module or a course designed for debt analysis is considered.

This offering helps you to prepare better for the future.

Step 3 - Verification of the loan amounts

After the loan terms are accepted, the amount of loan is verified with the school.

The loan funds will be disbursed, only after the school has certified your loan.

The loan can be canceled before the funds are sent to the school and hence you should continuously look for ways to pay your cost.

Rather than giving the money to pay for your school, the funds are directly sent straight to the school.

The money received by the school is applied for tuition, fees and other extra expenses incurred at school.

The remaining amount is disbursed to you in order to for expenses including books, room, transportation and more.

Step 4 - Agreeing on the Loan Repayment Terms

Loan repayment depends on your terms. You also stand a chance to win a few offers with variable repayment terms and interest rates.

You should also be informed about your monthly payment. The offer is to be considered and decisions on acceptance should also be considered.

To prevent credit from being impacted, make your payments on time. Lack of high credit score results in higher payments.

A good interest rate is a resultant of good income and good credit.

Student Loan Underwriting versus other loan underwritings

Your collateral is considered with mortgage lenders and the value of your asset limits your loan amount.

Though your collateral is considered with mortgage lenders, your loan amount might be limited by the value of your asset.

When a mortgage loan approval is received, the interest rate is received in ways as private student loans.

Mortgage payments can be lower in case they make a higher down payment.

Sometimes closing costs are to be included in the loan itself.

How does Raise Student Loan work?

Student loan programs, funds and originates loans for the Cognition Financial Corporation.

After student loans already applied for federal aid and still came up short, private student loans were redesigned.

Though they can lend any amount between $1,000 and $65,000, it would have to match with their school-certified costs.

A lifetime limit of $1,50,000 is offered in student loan borrowing to prevent students from over-borrowing.

The only choice is a variable rate and can go up and down from month to month.

The rate of Raise range between 6.074% to 15.075%. This is due to how Raise calculates the variable rates.

A small fixed rate from 3.95% to 12.95% is assigned as a margin.

Variable rates at Raise are capped at 16%.

In case you sign up for an autopay, you’ll be entitled to a 0.25% discount on interest.

Modes of Repayment

Immediate repayment and interest-only repayment are two modes of repayments while you are in school.

Due to immediate repayment, you’ll be eligible for full loan repayment for 30 to 60 days, after your school gets your funds.

In case you decide to go back to your school, you might be able to qualify for deferment or forbearance.

Why choose the Raise Loans?

The reasons why Raise stands out from the rest of the lenders is as given below.

  • There is no application or origination fee – Raise wouldn’t ask you to pay for your Raise Loan application.

  • The presence of a configuration tool to aid borrowers in identifying how their loan works, the interest rate of loans, term of loan and loan amount are appreciable.

  • The process of application process takes only 10 to 15 minutes and we also get an immediate response to get approved.

  • By signing up for autopay, you can lower your interest rate by 0.25%.


The reasons that would prevent borrowers from applying for Raise Loans are as given below.

  • Absence of fixed-rate interests – Only variable interest rates are offered by Raise. This is one big risk for those borrowers who can’t afford their interest payments.

  • The repayment period is comparatively short term. The longest term that you can get with Raise loan is 10 years.

  • The Raise loans are available only in 24 states. The firm insists that the cosigner cannot be from Wisconsin.

  • No cosigner release is granted. The only possibility to take the cosigner’s name off is to refinance your loan.

  • Raise also does not have Trustpilot pages 

Though Raise is a small company its parent firm is Cognition Financial.

The financial was founded in 1991 and aims at widening student access to financing when federal aid doesn’t play its part.

Though the rates are high, the terms are relatively short.

Raise student loans can’t be applied more than four months before the first day of school.


  What is the best time to apply for a Raise Student loan?

It is not possible to apply for a Raise student loan before 4 months at the beginning of classes at school. On-time applications can ease the process of enrollment at school.

  Can a Raise student loan be used for costs other than tuition and fee?

All expenses included in the cost of attendance such as textbooks, computers, transportation, housing, lab fees and more are covered up by Raise Student Loan.

  In which cases should I depend on a co-signer?

A co-signer is required for easy sanctioning of jobs in case you don’t have a job or a strong credit history. It is only an option to include a co-signer in case you are already employed or your application is made more competitive.

  What are ways to reduce interest rates?

Interest rates can be reduced by 0.25% in case you agree to make up automated payments.

  What is the minimum loan amount granted by the Raise Student Loan?

The minimum amount granted by the Raise Student Loan is $1,000.

  What is the maximum loan amount granted by Raise?

The maximum loan amount granted by Raise is $65,000.

  Is a fixed interest rate for loans promoted by Raise?

Only the variable interest rate is available for student loans at the Raise.

  What is the minimum loan rate for Raise?

The minimum Loan Term for Raise is 5 years.

  What is the maximum loan rate for Raise?

The maximum loan rate for Raise is 10 years.

  What is the minimum age for Raise Student Loan Application in Alabama?

The minimum age for Raise Student Loan Application is 19 years in Alabama. For all the other states it is 18 years.

  Is Wisconsin an eligible state for Raise Student Loan Application?

No. Wisconsin is not an eligible state for Student Loan Application.