RISLA Student Loans Review 2024

RISLA was founded in 1981 and is governed by a six-member board of directors, five of which are appointed by the state governor. It’s a quasi-state authority, meaning it still operates independently despite being supported by the Rhode Island state government.

RISLA offers undergraduate loans, parent student loans, certificate program loans and refinance loans nationwide. It bases underwriting on income and credit histories, so most undergraduate students need a co-signer to qualify for a loan.

This organization offers several benefits, including no origination fees, multi-year loan options and loan forgiveness options.

Loan Amounts and Terms

• Loan amounts. You can borrow $1,500 to $50,000 annually. The loan amount can’t exceed the total cost of attendance, minus any federal aid you might’ve received. Be sure to maximize your federal student loan allowance before applying.
• Terms. Loan terms can reach up to 15 years, depending on your loan amount and repayment capabilities.

Loan Costs and Fees

• Annual percentage rate (APR). RISLA’s fixed rates start at 4.40% to 8.45% (with autopay) for undergraduate and graduate borrowers with an immediate repayment plan. Borrowers with RISLA deferred repayment plans have a rate of 5.79% to 8.86%.
• Origination fees. RISLA doesn’t charge origination or application fees.
• Late fees. RISLA charges a 6% late fee.
• Prepayment fees. RISLA charges no prepayment penalty fees.

Repayment Options

RISLA offers two repayment options for undergraduate borrowers, including:

• Immediate repayment. Payments begin 15 days after the loan’s disbursement. The repayment period lasts for 10 years and has the lowest overall cost.
• Deferred repayment. Repayment begins six months after you graduate or leave school with a 15-year repayment term. This plan has a higher overall cost than immediate repayment.

Perks and Features

RISLA stands out from other lenders because of its unique repayment plans and rewards programs, including:

• Partial loan forgiveness for internships. If you complete a qualifying internship and earn academic credits, you can qualify for up to $2,000 in student loan forgiveness.
• No interest in nurses. Under RISLA’s nursing rewards program, the interest rate is 0% for 48 months of loan repayment. This program is available to Rhode Island residents and individuals attending eligible state schools.
• Income-based repayment. This extends your repayment term to 25 years and limits your payments to 15% of your discretionary income. If your loan isn’t paid at the end of your term, the remaining balance is forgiven.
• Co-signer release. RISLA allows borrowers to apply for co-signer releases after 24 consecutive, on-time monthly payments.

Loan Amounts and Terms

• Loan amounts. Refinance loan amounts range from $7,500 to $250,000, depending on your degree level. You can receive a lower interest rate and reduced monthly payments.
• Terms. RISLA offers five-, 10- or 15-year repayment terms based on your loan amount and qualifications. A 15-year term is standard for deferred repayment plans.

Loan Costs and Fees

• APR. RISLA’s fixed refinance interest rate for an immediate repayment plan is 6.34% to 8.24%. The RISLA deferred payment plan brings a minimum interest rate of 7.30% to 8.52%. Both of these rates include a 0.25% autopay discount.
• Origination fees. RISLA doesn’t charge origination or application fees.
• Late payment fees. RISLA charges a 6% late fee.
• Prepayment fees. RISLA charges no prepayment penalty fees.

Repayment Options

RISLA offers two repayment options for student refinance loans, including:

• Immediate repayment. With this plan, your payment begins 30 days after your loan is disbursed. You can have the flexibility to reduce or change your payments to meet your needs.
• Deferred repayment. Repayment begins six months after you graduate or leave school. However, interest will continue to accrue during the deferral period, making the loan more expensive over time.

RISLA also offers forbearance benefits for military members and borrowers facing financial stress or unfortunate accidents. You’ll need to demonstrate your circumstances to receive these benefits.

Perks and Features

RISLA offers several unique features and benefits to student loan refinance borrowers, including:

• Income-based repayment. If you qualify for this alternative payment plan, your loan term is extended and your payments are calculated based on a percentage of your discretionary income.
• Graduate school deferment. If you decide to pursue a master’s or doctoral degree, you can postpone your loan payments for up to 36 months.
• Forbearance. RISLA has a hardship forbearance program for refinancing borrowers. If you qualify, you can pause your payments for up to 24 months.

Eligibility Requirements

RISLA’s underwriting takes into account your income, assets, credit history and debt-to-income (DTI) ratio. Your DTI ratio—which measures how much of your income goes toward debt obligations—should rest below 40% to qualify. RISLA doesn’t disclose its minimum credit score. However, RISLA will conduct a credit check to determine your eligibility. A minimum income of $40,000 is also required.

To be eligible, you must be a U.S. citizen or permanent resident. Students can qualify for RISLA’s undergraduate loans if they’re enrolled full-time, half-time or part-time.

Co-signer Options

RISLA allows undergraduate and graduate applicants to add co-signers to their student loan applications. Your co-signer will need to provide financial information, such as tax forms, financial statements or more to confirm their eligibility.

Co-signer releases are not available for refinance loans.

Unlike many other private lenders, RISLA doesn’t have a prequalification tool. The only way to check your eligibility and interest rates is to complete an application and consent to a hard credit inquiry.

You can apply for undergraduate student loans and refinancing loans entirely online. You will need to provide:

• Valid Identification
• A Social Security number
• Employment and income verification
• Bank account information

Once you complete the application, RISLA will conduct a hard credit check to evaluate your eligibility, which could lower your score. Once approved, you’ll receive instructions on how to accept your loan via email. You’ll need to provide an electronic signature to complete the application.

RISLA’s site has an online chat feature where you can contact their team with any questions or concerns. You can also call RISLA at 401-736-3170 (local) or 800-758-7562 (toll-free) Monday through Friday from 8 a.m. ET to 5:30 p.m. ET. Refinancing applicants can call 866-268-9419 for assistance.

You can also email customerservice@risla.com for inquiries.

We reviewed RISLA based on 16 data points in the categories of interest rates, fees, loan terms, hardship options, application process and eligibility. We rated RISLA based on the weighting assigned to each category:

• Hardship options. 30%
• Application process. 16%
• Loan terms. 14%
• Eligibility. 14%
• Interest rates. 13%
• Fees. 13%

Specific characteristics taken into consideration within each category included number of months of forbearance available, economic hardship repayment options available beyond traditional forbearance, perks like cash-back rewards upon graduation, discounts, time to default, disclosure of credit score and income requirements, and other factors.

Lenders who offered interest rates below 10% scored the highest, as did those who offered more than the standard 12 months of forbearance, who made their loans available to non-U.S. citizens, who offered interest rate discounts beyond the standard 0.25% for automatic payments, who offered multiple loan terms maxing out at 15 years and who charged minimal fees.

In some cases, lenders were awarded partial points, and a maximum of 3% of the final score was left to editorial discretion based on the quality of consumer-friendly features offered.

To learn more about how Forbes Advisor rates lenders, and our editorial process, check out our Loans Rating & Review Methodology.