This initiative aims to replicate the success of Bilt’s model for rent payments but focuses on student tuition. Unlike Bilt points which transfer to various airline and hotel loyalty programs and can be redeemed for travel at 1.25 cents per point through their portal, Rise points hold a redemption value of one cent each.
Cardholders can earn up to 100,000 Rise points annually from tuition payments equivalent to $100,000 in tuition spend per year. However, room and board payments are not eligible.
Users receive an account number and routing number linked to their account enabling them to pay schools as if making an ACH payment. Funds can either be charged to the credit card or pulled from a bank account while still earning rewards. Financing options for tuition payments are also available.
While this product may be advantageous for direct tuition payments, it is not seen as a replacement for traditional college borrowing methods such as student loans which generally have lower interest rates than credit cards or private placement loans. Moreover, certain programs may offer partial or full forgiveness of student loans unlike credit card debt which is dischargeable in bankruptcy.
For those paying private school or university tuition directly, this product could be beneficial. However, its appeal outside of tuition-related expenses appears limited unless significant revolving credit usage can be generated.
The development stage of the product remains unclear. According to their CEO's resume and Twitter activity starting this month suggests the venture began in January.
When contacted about the bank issuer status for the card, their CEO stated: “We don’t yet have an issuing bank. We’re planning on getting one after we can show the consumer demand for the product from our waitlist.”
Interested individuals can join the waitlist and will receive reminders when applications become available.
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