RISLA Student Loan Refinancing Review

The Rhode Island Student Loan Authority (RISLA) offers nationwide private student loans and student refinance loans. RISLA is a nonprofit lender, so its rates and terms are generally more favorable to borrowers than those offered by many other private student loan refinance lenders.

This RISLA student loan refinancing review will help you decide if refinancing your educational debt with this lender is right for you.

RISLA student loan refinance review

Best for: Income-based repayment

Most private student loan lenders do not offer income-based repayment options to borrowers. This is a benefit traditionally associated only with federal student loans. But RISLA has a short-term income-based option if you are experiencing a period of temporary financial hardship.

The ability to cap payments at a percentage of income is a major advantage for borrowers who are worried that repaying their loans could become unaffordable in the future if they face job loss or other financial hardship.

Pros and cons

Current private student loan refinance rates

Eligibility

Like most lenders, RISLA has minimum and maximum loan limits. The least you can borrow is $7,500, and the most is between $100,000 and $250,000, depending on your degree. This minimum loan limit is higher than some competitors.

There are also certain requirements to be eligible to refinance your student loans with RISLA. Though the lender has Rhode Island in its name, borrowers from any state may be eligible. Here's what you need to qualify for a RISLA refinance loan:

• You must pass a credit check.
• You must meet liquidity requirements, which means that you must have a certain amount of money in savings.
• You must meet debt-to-income ratio requirements, which means your debt cannot exceed a certain percentage of your income.
• A borrower and cosigner who reside at the same address must have a combined household income of at least $40,000 per year. If they live separately, at least one of the two must earn a minimum of $40,000 annually.

RISLA does not disclose specifics on its minimum credit score, savings, or debt-to-income ratio. If you are unable to fulfill these criteria on your own, you can apply with a cosigner who meets the lender's criteria.

Cosigner release is not available for RISLA's refinance loan. This means the cosigner will continue to share responsibility for repayment until the loan is paid in full or until the primary borrower takes out a new refinance loan without a cosigner.

Repayment

RISLA offers a choice of two repayment options. When you refinance, you can choose one of the following:

• Immediate repayment: With this plan, your loan is repaid 30 days after the funds have been disbursed.
• Deferred repayment: This option is available if you are still attending school and you want to refinance to reduce your rate. RISLA's deferred plan enables you to put off payments until 6 months after you have graduated or until you've exceeded the maximum deferment time (72 months for undergraduates and 36 months for grad students).

You also have a choice of repayment terms for your loan. You can select a five-, 10-, or 15-year repayment timeline, depending on whether you prefer a longer term with lower monthly payments or want to make higher payments to pay less interest and become debt-free sooner.

Notable benefits

There are many benefits to refinancing your student loans with RISLA. Here are some of the biggest advantages:

• RISLA doesn't charge any fees. The only time you may be charged a fee is if you default on the loan.
• Borrowers have the option to refinance while still in school and defer payments until after graduation, which not all lenders offer.
• RISLA offers income-based repayment and forbearance options to reduce or pause payments during times of financial hardship.
• You can get an autopay discount of 0.25 percentage points.
• You don't have to meet a minimum degree level to refinance.

What to consider before refinancing with RISLA

Before you move forward with applying to refinance with RISLA, there are a few key things to think about:

• Cosigner release is not available. While many other lenders allow you to release your cosigner from the loan after you make a certain minimum number of on-time payments, this is not an option with RISLA.
• Only fixed-rate loans are available. There's no variable-rate loan option.
• The minimum loan limit of $7,500 is higher than some competitors require.
• While there's no minimum degree level to refinance, your degree level can affect your maximum loan limit.

Check Out: Best Student Loan Refinance Companies

How to apply

If you're interested in refinancing your loans with RISLA, here are the steps you'll need to take:

• Prequalify: You can get prequalified for a refinance loan quickly with no impact on your credit score. Click on "Get Started" on the RISLA website to submit your information for prequalification. You'll need to provide some basic personal and financial details. You can also call 800-758-7562 to get assistance.
• Confirm your rate and terms: You'll be given details on different loan options to choose from after you prequalify. These options will be personalized based on your financial credentials. Compare the rates, term lengths, and payments for each loan option to select the best one for your situation.
• Complete your final application and electronically sign your loan documents: You will need to complete a full application. If approved, review and sign your loan agreement.

Why you can trust our Credible experts

The Credible editorial team is independent and unbiased. Partners do not influence our editorial content. To help you find the best student loan for your situation, we conduct thorough research and analyze thousands of lender data points. Using data-driven methodologies, we score criteria that are important to you. This allows us to objectively rank student loan lenders and products. To learn more, read our methodology below.

Methodology

To determine RISLA’s lender rating, Credible collected more than 1,000 points of data on two dozen private student loan refinance companies and evaluated them on several different categories: repayment options, eligibility, interest rates, loan terms, and customer support. We assigned a score out of five stars to each lender based on our findings. Below are the weightings assigned to the general categories for the best student loan refinance companies — which comprise individual criteria that are also weighted.

• Repayment options: 30%
• Eligibility: 25%
• Interest rates: 20%
• Loan terms: 15%
• Customer support: 10%

While the best lender for you will depend on your unique needs and financial circumstances, these findings should help answer your questions and assist you in your search for the best student loan.

Learn more about our methodology.