Your Questions Answered
Why do you need so much information on the application?
It may seem like a lot of information, but all of that info helps us get to know you and your circumstances so we can evaluate your application based on more than just your credit score.6
Why do you need to check my credit report?
We have to check your credit report for two reasons. First, it helps us determine if we can provide you access to the money you need. Second, checking your credit report helps us validate information on your application.
Who is eligible for a raise^ private student loan?
When you apply, you must meet the credit and other guidelines in place, and you must be:
- A US citizen or permanent resident who, if you're the student, is a permanent resident of Alabama, Arizona, Arkansas, California, Colorado, Florida, Georgia, Indiana, Maryland, Minnesota, Missouri, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, South Carolina, Tennessee, Texas, Washington or West Virginia, or, if you're the cosigner, not a permanent resident of Wisconsin.
- Attending an eligible college or university at least half-time (a list of eligible schools can be found in the first section of the application).
- Earning income (or have a cosigner that does).
- Able to enter into a contract at the time of application4.
Which states do you lend in?
We lend in: Alabama, Arizona, Arkansas, California, Colorado, Florida, Georgia, Indiana, Maryland, Minnesota, Missouri, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, South Carolina, Tennessee, Texas, Washington or West Virginia. Your state not listed? Check back soon! We're working to expand where we lend.
Do I need to fill out a FAFSA?
Nope. To get a raise^ private student loan, a FAFSA isn't required, but we do recommend you fill one out so you can better compare all your financial aid options.
Do I need a cosigner?
Most students don't have much credit history which makes evaluating your eligibility a bit tricky. A cosigner with good credit history on the other hand, can help you qualify for a loan when you don't have the credit history to do so yourself. A cosigner could be a parent or grandparent, but certainly doesn't have to be. Just remember, a cosigner takes on the same responsibilities the borrower does on the loan.
Can I fill out the application on my smartphone or tablet?
Sure. Although, we recommend using something with a larger screen because there are plenty of important details and the best user experience is on a laptop or desktop.
How does my school get the money from my loan?
raise^ private student loans are disbursed directly to your school, so you don't have to go through the hassle of cashing a check to pay your school.
How can I check the status of my loan?
Who is the lender for the raise^ private student loan?
The loans are made by Cognition Lending.
What should I think about when evaluating my loan options?
There are lots of things to consider, but some of the big ones are:
- Your term: The term is the length of time you elect to repay your loan—for a raise^ private student loan, it's 5, 7, or 10 years7. The longer the term, the smaller your monthly payment will be, but the more you'll pay in interest over the term. For a shorter term, you'll make a larger monthly payment, but the overall cost of your loan will be less than it would be with a longer term. Also, a different term selection could affect your rate / APR. Choose the one that best meets your needs.
Your repayment option/type: This refers to how you repay your loan. The raise^ student loan gives you 2 options1.
- Immediate Repayment: With immediate repayment, you start making monthly principal and interest payments within 30-60 days following the final disbursement of your funds to your school.
- Interest-Only Repayment1: When you choose Interest Only, you'll make monthly interest payments while you're in school, but not principal payments. Once you graduate or drop below half-time status there will be a six-month grace period8, then you'll have to start making principal and interest payments9.
- Interest begins accruing when the first payment is sent to your school.
The repayment plan you choose can make a big difference in your loan's overall cost — so review your options carefully. Within the application, you can use a comparison tool that will help you compare different options that are available to you1; it will show you the impact of different repayment options and repayment term combinations on the loan's overall cost and estimated monthly payment amounts.
- Your APR: The APR shows you the annual estimated cost of your loan (including fees) on top of the principal loan amount. This is how many people compare different loans because it gives an overview of how much it will cost to borrow money each year.
What's the difference between an Annual Percentage Rate (APR) and an interest rate?
The interest rate is the annual rate at which your loan will be charged interest, which is the cost of borrowing money, whether or not you are making payments. Even though it is an annual rate, interest is charged using this rate on a daily basis and the rate may change each quarter as your index goes up or down. An annual percentage rate is an estimated cost of what your loan will cost you each year, including fees. It considers the fact that you will not be obligated to make payments during any applicable deferment period. The APR is not the rate at which interest accrues. This is generally what people use to compare different loans because it gives a more complete picture of how much you'll be paying to borrow the money.3
Get your initial
credit decision in as little as 10 minutes.
1 Any applicant who applies for the loan the month of, the month prior to, or the month after their graduation date, as stated on the application or certified by the school, will only be offered the immediate repayment option.
2 0.25% interest rate reduction applies when full payments (including both principal and interest) are automatically drafted from a bank account. Interest rate reduction(s) will remain on the account unless (1) the automatic deduction of payments is stopped (including during deferment or forbearance) or (2) there are three automatic deductions returned for insufficient funds within the life of the loan.
3 The variable interest rate currently ranges from % – % (APR % – %). The variable interest rate for each calendar month is calculated by adding the current One-month LIBOR index (published on the 25th day, or the next business day thereafter, of the month immediately preceding such calendar month, and rounded up to the nearest 1/8th of one percent) to your margin. Margins currently range from %-%. The current One-month LIBOR index is % on . LIBOR stands for London Interbank Offered Rate. The One-month LIBOR is published in the "Money Rates" section of the Wall Street Journal (Eastern Edition). The interest rate will be determined after you apply. The variable interest rate and Annual Percentage Rate (APR) depend upon (1) the student’s and cosigner's (if applicable) credit histories, (2) the repayment option and loan term selected, and (3) the requested loan amount and other information provided on the online loan application. If approved, applicants will be notified of the rate qualified for within the stated range. The variable interest rate will increase or decrease if the One-month LIBOR index changes, but will never exceed 16%. Rates and terms effective for applications received on or after . Interest will begin to accrue as of the first disbursement date.
4 The legal age for entering into contracts is 18 years of age in every state except Alabama (19 years old), Nebraska (19 years old, only for wards of the state), and Mississippi and Puerto Rico (21 years old).
5 Make interest only payments while student is enrolled at least half time in a Title IV eligible school. Principal payments will begin the earlier of six months from the date on which the student graduates or falls below half time at a Title IV eligible school, but no later than 66 months from the first disbursement date. Interest will begin to accrue as of the first disbursement date.
6 The initial credit review is based on all the information you and your cosigner (if applicable) provide during the application process and the information obtained from your credit report (and any cosigner’s credit report). If you pass the initial credit review, documentation will be requested to verify your identity and annual income. A signed Loan Packet, including the Credit Agreement, Approval Disclosure and Applicant Self-Certification Form is required before a final loan decision is made. Your school will be required to certify the loan amount for the upcoming academic year/semester prior to disbursement.
7 Payment examples (all assume a 45-month deferment period and a six month grace period before entering repayment): 5 year term: $10,000 loan disbursed over two transactions with interest only repayment a 5-year repayment term (60 months) and a % APR would result in a monthly principal and interest payment of ; 7 year term: $10,000 loan disbursed over two transactions with interest only repayment a 7-year repayment term (84 months) and a % APR would result in a monthly principal and interest payment of ; 10 year term: $10,000 loan disbursed over two transactions with interest only repayment a 10-year repayment term (120 months) and a % APR would result in a monthly principal and interest payment of .
8 Length of grace period may be shorter than six months for students enrolled in school for longer than 60 months. The immediate repayment option does not have a grace period.
9 Making interest only payments while in school will not reduce the principal balance of the loan. Interest will begin to accrue as of the first disbursement date.