Cole was on the pitch when, at 18, he bagged his first senior goal in a 4-3 win over Barnsley.
Cole believes the move can help the midfielder establish himself at Anfield. He told the Daily Mail: The landscape has changed in English football for young lads like Ryan.
"There's a process they have to go through now to get a game for one of the big clubs.
“As part of their development, they're being loaned out to Championship, League One or Scottish Premiership clubs.
“Sometimes they'll even go to places like Holland before a big English club will even consider them.
“It's such a tough environment for these boys in the Premier League now because of the finances and the standard of player.
“Ultimately, Ryan has to be better than the likes of Salah or Mane at Anfield, which is a big ask.
“But that's not to say he can't be as good as those boys one day in the future. It's just a different route they have to take, compared to when I came through.
“Ryan's career is progressing steadily and this is the perfect next step for his development.
“It suits all parties and the Rangers fans are going to be excited by watching him play.
“He's one of those players who gets supporters off their feet."