RISLA Student Loan Review: Pros, Cons, And Alternatives

The Rhode Island Student Loan Authority, or RISLA, offers a variety of services to support both Rhode Island (RI) residents and students throughout the United States.

Being a non-profit and quasi-state authority, RISLA prides itself in helping students make responsible financial decisions and furthering their careers. Where you're looking for a loan or are simply looking for career help, RISLA can be a wonderful resource.

Remember, always compare your options when shopping for a student loan. We recommend Credible, because you can compare up to eight different lenders (including RISLA) at once. Check out Credible here. As a bonus, College Investor readers are eligible for up to a $1,000 gift card bonus when they refinance at Credible.

Also, check out our list of the best places to refinance student loans and see how RISLA compares to other top lenders. Onto the RISLA review!

RISLA Student Loans

RISLA offers multiple student loan options. Loans range from a $1,500 minimum up to $45,000 per year (with an aggregate limit of $150,000) and are available to students in all 50 states. Here are some of their key features:

Immediate Repayment Student Loan

This is a fixed repayment student loan that requires repayment immediately, even if you're in school. However, it has the lowest rate of any loan offered by RISLA.

Currently, you can get a loan starting at 4.40% APR, with the 0.25% autopay discount. This loan has a standard repayment term of 120 months (10 years). 

If you're a Rhode Island resident or you're attending a college or university in Rhode Island, you can qualify for an even lower interest rate starting at 3.45%. RISLA calls this the Rhode Island Advantage and it's only available for eligible students who choose the 10-Year Immediate Repayment Plan.

Deferred Repayment Student Loan

If you're concerned about making student loan payments right away, because maybe you're in school still and don't have any income, look at their deferred repayment student loan. 

This loan has a fixed APR of as low as 5.99% with auto-pay. It has a longer repayment term of 180 months, or 15 years.

RISLA Parent Loan

This loan is for parent borrowers who want to take out a loan to pay for their children's education. We don't typically recommend these loans (see: Options If You Can't Afford Your Parent PLUS Loans). But we're also not your mom. And it's a viable option to pay for college.

This loan has as low as a 5.74% fixed APR with autopay, and it has a standard 120 month (10 year) repayment term. Remember, rates and terms are subject to change. Please visit RISLA's website for the most up to date information.

As is standard, interest accrues after the first disbursement. For students who choose the deferred repayment option, a statement of accruing interest is provided to students and can be paid off (which will reduce your interest cost over the long term).

Forgiveness And Rewards

In line with their career development oriented approach, RISLA offers a $2,000 loan forgiveness for students who participate in an eligible, for-credit internship and submit a simple 2-page application.

RISLA also provides a free internship-finding service (through bridge.jobs) to connect students with RI employers. This makes the loan forgiveness option easier to fulfill. Notably, the internship can be done in or out of state.

RISLA also provides rewards for nurses and nurse educators, with individual programs for each. Eligible nurses can get up to four years (48 months) of zero interest on the loans that they take out.

RISLA Student Loan Refinancing

RISLA also offers refinancing of student loans between $7,500 and $250,000, depending on the degree earned by the loan holder. You can apply to refinance with RISLA regardless of what state you reside in or the state your college was located in.

Rates are based upon your credit. Discounts are given for autopay, to borrowers who work and also to borrowers who went to school or live in Rhode Island.

The fixed rates are 6.34% - 8.54% APR. Remember, all rates and terms are subject to change. Please visit RISLA's website or Credible for the most up to date information.

Hesitant to refinance your student loans now because you might pursue a graduate degree down the road? Thankfully, this isn't a problem with RISLA. Borrowers who re-enter graduate school after refinancing can take advantage of 36 months of deferment.

What Borrower Protections Are Available?

When borrowers choose private student loans or student loan refinancing, they forfeit a variety of federal benefits. And one of those benefits that private lenders typically can't match is the ability to base your monthly payments on your current income.

However, RISLA is one of the few private lenders that does offer income-based repayment. Students who choose IBR with RISLA will never pay more than 15% of their monthly income towards loan payments. And if they have a remaining balance after 25 years, it will be forgiven. This is an incredible benefit that's almost unheard of in the private student loan space.

And that's not the only way that RISLA protects borrowers. It also offers academic and military forbearance, death and disability forgiveness, and up to 12 months of economic hardship forbearance. When it comes to offering flexibility and downside protection, RISLA is genuinely one of your best private lending options.

How Does RISLA Compare?

RISLA stands out in a crowded private student loan space by offering an income-based repayment option. But if you aren't planning to take advantage of this benefit, you might want to choose another private lender if it can offer you a better interest rate. Check out how RISLA compares in this quick comparison chart:

Who Qualifies To Apply?

RISLA’s loans are credit-based, meaning that students just going into college or without a good credit score (>680) and consistent income (>$40,000) will likely need a cosigner. Fortunately, RISLA offers a co-signer release option after 2 years of on-time payments.

If you're applying for a private student loan with RISLA, you won't be able to check your rate without submitting a full application. However, refinance borrowers can use RISLA's pre-qualification tool to check their estimated rate without it having any affect on their credit score. You can also check and compare RISLA's refinance rates at Credible.

Are There Any Fees?

RISLA doesn't charge any upfront fees (application or origination fees). And it doesn't charge prepayment penalties either. However, it does charge a late fee of 6% of the late payment amount, which is on the high side.

How Do I Contact RISLA?

This is one of the areas where RISLA really excels. First, it self-services all of its loan accounts. And the customer testimonials on RISLA’s site generally applaud the personal attention RISLA provides as well as the counseling that goes above and beyond your typical loan provider.

To test this, I called RISLA’s customer service to ask a few questions about their student loans. After a short hold, I was redirected to the nicest receptionist who quickly answered all of my questions about credit scores and the cosigner process. The whole process took less than a minute.

Here are the various ways that you can get in touch with RISLA:

Phone:

• College loan origination: 800-758-7562
• Student loan refinancing origination: 866-268-9419
• Loan servicing: 888-897-4752

Email: customerservice@risla.com

General mailing address:

PO Box 81071
Warwick, RI 02888-0089

Address for sending payments:

PO Box 150501
Hartford, CT 06115-0501

Why Should You Trust Us

I am America’s Student Loan Debt Expert™ and have been actively writing about and covering student loans since 2009. Myself and the team here at The College Investor have been actively tracking student loan providers since 2015 and have reviewed, tested, and followed almost every provider and lender in the space.

Furthermore, our compliance team reviews the rates and terms on these listing every weekday to ensure they are accurate. That way you can be sure you're looking at an accurate and up-to-date rate when you're comparison shopping. 

Who Is This For And Is It Worth It?

Overall, RISLA provides both competitive rates as well as excellent borrower protections, including an income-based repayment option. For new or existing borrowers who are seeking a more personal-oriented experience that is harder to find with federal loans or private banks, RISLA is certainly a strong competitor.

To read more reviews about student loan refinancing lenders, check out our Student Loan Refinancing Tool. You can also compare your rates at Credible. And don't forget that you can get up to a $1,000 gift card bonus when you refinance with Credible!

RISLA FAQs

Let's answer a few common questions about RI Student Loan Authority:

Does RISLA offer income-based repayment?

Yes, both private student loan and refinance borrowers can choose to pay 15% of their monthly income and any outstanding balance will be forgiven in 25 years.

Do you have to live in Rhode Island do apply for a RISLA loan?

No, RISLA loans are available to students and existing borrowers in all 50 states. However, Rhode Island residents or non-residents attending an eligible Rhode Island school can qualify for a lower interest rate on immediate repayment loans.

Is RISLA federal or private?

As a private nonprofit corporation, RISLA loans don't come with federal benefits. But it may be able to offer better rates or benefits than some for-profit private lenders.

Do you need a degree to apply for refinancing with RISLA?

No, anyone with student loans can apply for refinancing with RI Student Loan Authority, including non-graduate borrowers.

Does RISLA have any bonus offers or incentives?

Yes, refinance borrowers can receive a gift card bonus of up to $1,000 if they apply through Credible. And Rhode Island residents (or attendees of Rhode Islands schools) can qualify for a significantly reduced interest rate on an immediate repayment college loan. 

RISLA Features