With direct subsidized and unsubsidized loans offering interest rates below 4% (for undergraduate students), it’s tough to justify private student loans.
However, people who need money for college who missed their FAFSA deadline (or didn’t borrow as much as they actually needed) might be in the market for private loans.
If you’re in that situation, you may want to consider Raise^ Private Student Loans.
We also recommend that borrowers shop around for the best rate for a private loan. Check out Credible and see what you'd qualify for.
These private student loans are designed specifically for students who earn an income, and who need private student loans. The rates on Raise^ loans aren’t spectacular, but they may be helpful for students in a pinch.
Raise^ Student Loan Interest Rates
Raise^ Student Loan interest rates range from 5.33% for the most qualified applicants to 15.73%. The interest rate also varies based on the type of loan you choose and the loan term. Raise^ offers loans ranging from 5 to 10 years of repayment time.
If you’re still a student, you can also choose an “interest only” loan where you only make interest payments while you’re in school.
Many student loans don’t require you to make any payments while you’re in school, but this option can be an advantage. First, paying the interest will keep your debt from ballooning out of control while you’re in school.
Secondly, making payments while you’re in school will help you build credit.
Below, you’ll see a table with the interest rate ranges for each of Raise’s six loan products.
Interest Rate Change
5 year immediate repayment
5 year interest only
7 year immediate repayment
7 year interest only
10 year immediate repayment
10 year interest only
Raise^ Student Loan Grace Periods
As a Raise^ borrower, you can opt for an immediate repayment schedule (where you start making payments while you’re in school) or an interest only repayment schedule.
With the interest only repayment schedule, you can pay only the interest on your loans as long as you are a full time student in an accredited higher education institution.
Once you drop below a half-time enrollment, you’ll have six months of a grace period before you have to start making your full payment. If you stay in school for more than five years (60 months), Raise^ may not give you the full six months for a grace period.
Do I Need A Cosigner For Raise^ Student Loans?
Raise^ doesn’t require a cosigner for you to take on a student loan, but they have minimum credit and income requirements. If they don’t think you’re qualified to make the interest only payments while you’re in school, they’ll probably require you to take on a cosigner.
Remember, a cosigner agrees to all the same obligations as a borrower, so cosigning a loan is a huge responsibility. We rarely recommend that anyone cosign a loan (except for a spouse).
Where Does Raise^ Lend?
Right now, Raise^ isn’t a nationwide lender. You must attend school in one of these state’s to take out a loan from Raise^: Alabama, Arizona, Arkansas, California, Colorado, Florida, Georgia, Indiana, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, South Carolina, Tennessee, Texas, Washington or West Virginia.
Who Should Consider a Raise^ Private Student Loan?
In general, we recommend avoiding student loan debt as much as possible. While a little bit of debt can help you graduate fast and invest in your career, too much debt mortgages your future.
Right now, the primary group who should consider a Raise^ loan are people who didn’t complete the FAFSA on time (and therefore don’t qualify for Federal Aid) or people who can get a great rate without a cosigner.
The rates and terms at Raise^ are decent, especially if you qualify at the low end, but they aren’t spectacular.
If you do need to take on private student loans, be sure to compare rates from multiple lenders. Student loans are not something you want to overpay. We recommend Credible to shop for a private student loan in minutes. Learn more here.
What do you look for in a student loan company?