Raise.me pockets $12m to change student loans

College financing app Raise.me has scored $12m in Series A funding to offer micro-scholarships.

Redpoint Ventures led the round with GSV Acceleration, Owl Ventures, First Round Capital and SJF Ventures also participating.

The California company aims to incentivise more students to look for financial aid and apply to college by allowing them to earn towards their scholarship while at high school.

Rasie.me is partnered with more than 200 colleges to allow them to reward students for achievements such as good grades, volunteering or extra-curricular activities.

This serves to reduce the costs that colleges already incur in marketing and outreach to encourage students to attend and making them aware of the financial help the school offers.

The company says it has allowed colleges to award almost $1bn in student aid and attracted more than 650,000 students to the platform.

Raise.me previously raised $4.5m in a Seed round in April 2015 and will use the new capital to expand across the US.

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