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Best for:
- Refinancing federal loans with a safety net (income-based repayment if you lose your job)
- Workers who are thinking about going back to grad school
The Rhode Island Student Loan Authority (RISLA) stands out from the crowd by offering a safety net to borrowers who refinance their student loans in the form of income-based repayment. Although based in Rhode Island, RISLA offers student loan refinancing to borrowers in all 50 states.
In this post:
- RISLA interest rates and loan details
- RISLA student loan refinancing review
- How RISLA compares to other lenders
- How to refinance student loans with RISLA
RISLA interest rates and loan details
As a nonprofit state student loan authority, RISLA offers student loan refinancing rates that can be very competitive. You’ll need a credit score of at least 680 and a minimum of $40,000 in annual income. While you have a choice of a five, 10, or 15-year repayment term, RISLA only offers fixed-rate loans — there’s no option to refinance into a variable-rate loan.
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| Fixed rates | 3.49%+ |
| Loan amounts | $7,500 up to $250,000 (depending on highest degree earned) |
| Loan terms | 5, 10, 15 years |
| Loan types | Private and federal student loans (including parent PLUS loans) |
| Min. credit score | 680 |
| Min. income | $40,000 |
| Residency | Resident of any U.S. state |
| Transfer parent loan to child? | No |
| Cosigner release | Not offered |
| Death discharge available | Yes |
| Fees |
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| Prepayment penalty | None |
| Key benefits |
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| Education | Degree not required |
| Loan servicer | RISLA |
| Best for |
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All APRs reflect autopay and loyalty discounts where available |
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RISLA student loan refinancing review
If you’ve been thinking about refinancing your federal student loans but were reluctant to give up certain borrower benefits, RISLA is an interesting option.
RISLA offers three special borrower benefits:
- Income-based repayment (IBR): If you refinance private or federal student loans and later run into financial hardship, RISLA offers IBR. As with some federal income-driven repayment programs, your monthly payments are capped at 15% of your discretionary income (or yours and your cosigner’s). Your repayment term will automatically be stretched out to as long as 25 years if you qualify. If you still haven’t paid off your loan in that time, the balance is forgiven.
- Defer payments if you return to grad school: You can apply to defer your payments for up to 36 months if you decide you want to go back to graduate school after refinancing. However, interest will still rack up on your loans while your payments are on hold.
- Death or disability discharge: RISLA will also forgive the balance of your loan if you die or become totally and permanently disabled, using the same standards that the U.S. Department of Education applies to federal loans.
How to qualify
RISLA will refinance private and federal student loans, including PLUS loans, for borrowers nationwide. But to qualify to refinance student loans with RISLA, you’ll need to be the one responsible for the loan(s) — you can’t transfer PLUS loans taken out by your parents into your own name, for example.
If you don’t meet RISLA’s minimum 680 credit score and $40,000 income requirements, you can apply with a cosigner. The rate you’ll be offered will be based on factors that include the repayment term of the loan, whether you’re applying with a cosigner, and your credit score and financial history.
Repayment
When refinancing your student loans with RISLA, you can choose a repayment term of five, 10, or 15 years. The shorter the repayment term, the lower the interest rate you’ll qualify for. But shorter loan terms also mean larger monthly payments.
If you agree to have payments automatically withdrawn from your bank account each month, you’ll qualify for a 0.25% rate reduction. You can also use a website provided by University Accounting Service to make payments, view statements, and manage your RISLA account.
Learn More: Student Loan Repayment Calculator
How RISLA compares to other lenders
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| Rates from (APR) | Fixed: 3.49%+ Variable: N/A | Fixed: 4.89%+2 Variable: 3.89%+2 | Fixed: 3.49%+¹ Variable: 2.72%+¹ |
| Loan repayment terms (Years) | 5, 10, 15 | 5 to 20 years | 5, 7, 10, 15, 20 |
| Loan amount | $7,500 to $250,000 | $5,000 to $300,000 | $10,000 to $500,000 (depending on level of education) |
| Cosigner release? | No | Not offered for refinancing | Yes, applications accepted after 36 months of consecutive payments |
| Transfer parent loan to child? | No | No | No |
| Loan servicer | RISLA | University Account Service (UAS) | Firstmark Services |
| Best for | Borrowers who are worried about their job security | Graduates seeking flexible loan terms | Refinancing large loan balances |
All APRs reflect autopay and loyalty discounts where available | 1Citizens Bank Disclosures | 2College Ave Disclosures | 3 ELFI Disclosures | 4SoFi Disclosures | 5EDvestinU Disclosures |
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Citizens Bank Education Refinance Loan Rate Disclosure: Variable rate, based on the one-month London Interbank Offered Rate ("LIBOR") published in The Wall Street Journal on the twenty-fifth day, or the next business day, of the preceding calendar month. As of May 1, 2020, the one-month LIBOR rate is 0.44%. Variable interest rates range from 2.72%-8.38% (2.72%-8.38% APR) and will fluctuate over the term of the borrower's loan with changes in the LIBOR rate, and will vary based on applicable terms, level of degree earned and presence of a co-signer. Fixed interest rates range from 3.49% - 8.63% (3.49% - 8.63%APR) based on applicable terms, level of degree earned and presence of a co-signer. Lowest rates shown are for eligible, creditworthy applicants with a graduate level degree, require a 5-year repayment term and include our Loyalty discount and Automatic Payment discounts of 0.25 percentage points each, as outlined in the Loyalty and Automatic Payment Discount disclosures. The maximum variable rate on the Education Refinance Loan is the greater of 21.00% or Prime Rate plus 9.00%. Subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change. Please note: Due to federal regulations, Citizens Bank is required to provide every potential borrower with disclosure information before they apply for a private student loan. The borrower will be presented with an Application Disclosure and an Approval Disclosure within the application process before they accept the terms and conditions of their loan. |
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Learn More: How to Pay Off Student Loans
How to refinance student loans with RISLA
As a nonprofit state student loan authority, RISLA offers competitive rates and a good lineup of. But because many lenders compete to refinance student loans, it’s a good idea to compare the rates, terms, and features offered by several lenders. Credible lets you request personalized rates in minutes from some of the best companies to refinance your student loans.
See Your Refinancing Options
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How RISLA can improve
RISLA offers several borrower benefits that some private lenders can’t match. But it could improve by:
- Providing variable-rate loans
- Being willing to approve higher loan limits
- Offering cosigner release once borrowers are able to qualify on their own
Find Out: How Long Will It Take to Pay Back My Student Loans?
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