RISLA Review: Student Loan Refinancing and Private Student Loans

RISLA offers income-based repayment, making it a good choice for borrowers who may require flexibility in the future.

Ryan Lane, Cecilia ClarkAugust 5, 2020

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Student loan ratings

RISLA

  • Student loan refinancing

  • Private student loan

The bottom line: The Rhode Island Student Loan Authority, known as RISLA, is a nonprofit state-based agency that refinances student loans and makes loans to undergrads, graduate students and parents. Its loans are available nationwide and best for borrowers who may need wiggle room on payments in the future.

Student loan refinancing review

RISLA Student Loan Refinance

RISLA Student Loan Refinance

4.5

NerdWallet rating 
Fixed APR

3.49 - 8.14%

Min. Credit Score

680

Pros

  • Income-based repayment plan available, with forgiveness after 25 years.

Cons

  • No co-signer release available.
  • You can't see if you’ll qualify and what rate you’ll get without a hard credit check.
  • Students cannot refinance a parent PLUS loan in their name.

Best for borrowers who want payment flexibility should they run into financial trouble.

Full Review

RISLA offers refinancing customers a rare option: an income-based repayment plan if they experience extended financial hardship. Other aspects of the product are less flexible: Loans are available at fixed interest rates only, and borrowers cannot release co-signers from the loan after a period of time.

RISLA student loan refinancing at a glance

  • Generous repayment flexibility for struggling borrowers.

  • Borrowers without a degree can refinance.

  • Does not offer personalized rate estimates via a soft credit check.

How RISLA could improve

RISLA could improve its student loan refinance product by offering:

  • Personalized rate estimates via a soft credit check.

  • More than 12 months of forbearance.

  • A co-signer release program.

How much can refinancing save?

RISLA student loan refinancing details

  • Soft credit check to qualify and see what rate you’ll get: No.

  • Loan terms: 5, 10 or 15 years.

  • Loan amounts: $7,500 to $250,000, depending on the highest degree earned.

  • Can transfer a parent loan to a child: No.

  • Application or origination fee: No.

  • Prepayment penalty: No.

  • Late fees: Yes, 6% of late payment amount.

Compare RISLA's range of interest rates with other private student loan lenders. Your actual rate will depend on factors including your — or your co-signer’s — credit history and financial situation. To see what rate RISLA will offer you, apply on its website.

Financial

  • Minimum credit score: 680.

  • Minimum income: $40,000.

  • Typical credit score of approved borrowers: 768.

  • Typical income of approved borrowers: Did not disclose.

  • Maximum debt-to-income ratio: 50%.

  • Can qualify if you’ve filed for bankruptcy: Yes, after five years.

Other

  • Citizenship: Must be a U.S. citizen or permanent resident.

  • Location: Available to borrowers in all 50 U.S. states.

  • Must have graduated: No.

  • Must have attended a school authorized to receive federal aid: Yes.

  • Percentage of borrowers who have a co-signer: 61%.

Many lenders are offering relief related to COVID-19. Check this list of private loan relief options to see what this lender offers.

  • Academic deferment: Postpone payments if you attend graduate school at least half-time. Not available for borrowers who return to school to finish undergraduate degrees.

  • Military deferment: Postpone payments if you're on active military duty.

  • Forbearance: Postpone payments for up to 12 months if you're experiencing economic hardship.

  • Income-based repayment: Pay a maximum of 15% of income per month if you're unable to afford your bill. The remaining balance will be forgiven after 25 years, though the forgiven amount will be taxed.

  • Co-signer release available: No.

  • Death or disability discharge: Yes.

  • Loan discharge if co-signer dies or becomes disabled: No.

Repayment Preferences

  • Allows greater-than-minimum payments via autopay: Yes.

  • Allows biweekly payments via autopay: No, but borrowers can make weekly payments.

  • Loan servicer: RISLA.

  • In-house customer service team: Yes.

  • Process for escalating concerns: Yes.

  • Borrowers get assigned a dedicated banker, advisor or representative: No.

  • Average time from application to approval: 6 days.

Before refinancing with RISLA

You can apply for a RISLA refinanced student loan on its website. Before deciding on a student loan refinance lender, compare multiple student loan refinance options to make sure you’re getting the best rate you qualify for. In addition to interest rates, compare lenders’ repayment options and the flexibility they offer borrowers who are struggling to make payments.

If you aren’t eligible to refinance with RISLA

If RISLA denies your refinance application, the lender will let you know why. Depending on the reason, you may want to consider other lenders or need a co-signer.

NerdWallet recommends prequalifying with multiple refinance lenders before you apply. This will let you know which lenders you may be eligible with, without affecting your credit.

How does this loan compare?

College Ave Student Loan Refinance
Citizens One Student Loan Refinance
Check RateCheck Rate
Fixed APR

3.74 - 8.49%

Fixed APR

2.99 - 8.49%

Variable APR

3.64 - 8.49%

College Ave Student Loans products are made available through either Firstrust Bank, member FDIC or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply. All rates shown include the autopay discount. (1)The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. Variable rates may increase after consummation. (2)This informational repayment example uses typical loan terms for a refi borrower who selects the Full Principal & Interest Repayment Option with a 10-year repayment term, has a $40,000 loan and a 5.5% Annual Percentage Rate (“APR”): 120 monthly payments of $434.11 while in the repayment period, for a total amount of payments of $52,092.61. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary. (3)$5,000 is the minimum requirement to refinance. The maximum loan amount is $250,000 for those with medical, dental, pharmacy or veterinary doctorate degrees, and $150,000 for all other undergraduate or graduate degrees.

Variable APR

1.99 - 8.24%

Education Refinance Loan Rate Disclosure: Variable interest rates range from 1.99%-8.24% (1.99%-8.24% APR).Fixed interest rates range from 2.99%-8.49% (2.99%-8.49% APR).

Min. Credit Score

Upper 600s

Min. Credit Score

Does not disclose

Private student loan review

RISLA Private Student Loan

RISLA Private Student Loan

4.5

NerdWallet rating 
Fixed APR

3.64 - 5.46%

Min. Credit Score

680

Pros

  • Income-based repayment plan available, with forgiveness after 25 years.
  • You can see if you’ll qualify and what rate you’ll get without a hard credit check.
  • Partial loan forgiveness for eligible internships; interest forgiveness for qualifying nurses.

Cons

  • Fewer repayment terms available than other lenders.

Best for students who may need wiggle room on payments in the future.

Full Review

RISLA’s private student loan is a good option for borrowers who value payment flexibility. RISLA offers an income-based repayment plan that caps payments at 15% of income and forgives any remaining balance after 25 years, similar to the federal government’s income-driven repayment plans. RISLA also forgives up to $2,000 for borrowers who complete eligible internships, and covers interest costs for up to 48 months for qualifying nurses.

You previously had to live in Rhode Island or go to school there to qualify for a private student loan from RISLA. Its in-school offerings are now available nationwide.

RISLA private student loan at a glance

  • Rare repayment flexibility and forgiveness options.

  • Personalized rate estimates via a soft credit check.

  • Co-signer release after 24 on-time payments.

How RISLA could improve

RISLA could improve its private student loans by:

  • Offering more than 12 months of forbearance.

  • Allowing students with a visa to take out loans.

RISLA private student loan details

  • Soft credit check to qualify and see what rate you’ll get: Yes.

  • Loan terms: 10 years for immediate repayment plan; 15 years for deferred repayment plan.

  • Loan amounts: $1,500 to $45,000.

  • Application or origination fee: No.

  • Prepayment penalty: No.

  • Late fees: Yes, 6% of late payment amount.

Compare RISLA's range of interest rates with other private student loan lenders. Your actual rate will depend on factors including your — or your co-signer’s — credit history and financial situation. To see what rate RISLA will offer you, apply on its website.

Financial

  • Minimum credit score: 680.

  • Minimum income: $40,000.

  • Typical credit score of approved borrowers or co-signers: 768.

  • Typical income of approved borrowers: Did not disclose.

  • Maximum debt-to-income ratio: 50%.

  • Can qualify if you’ve filed for bankruptcy: Yes, after five years.

Other

  • Citizenship: Must be a U.S. citizen or permanent resident.

  • Location: Available in all 50 U.S. states.

  • Must be enrolled half-time or more: No.

  • Types of schools served: Any school authorized to receive federal aid.

  • Percentage of borrowers who have a co-signer: 90%+.

Many lenders are offering relief related to COVID-19. Check this list of private loan relief options to see what this lender offers.

In-school repayment options

  • Immediate: Begin making full monthly payments as soon as the loan is disbursed. This option will save you the most in interest.

  • Deferred: You won’t be required to make any payments until your six-month grace period ends, but you can choose to make payments if you’d like. Interest will accrue while you’re in school and will capitalize, or get added to your principal balance, at the end of your grace period.

Post-school repayment options

  • Grace period: 6 months, but only for the deferred repayment plan.

  • Academic deferment: Postpone payments if you return to school. Graduate students must attend at least half-time.

  • Military deferment: Postpone payments if you're on active military duty.

  • Forbearance: Postpone payments for up to 12 months if you're experiencing economic hardship.

  • Co-signer release: Yes, if the borrower makes the first 24 monthly payments on-time and meets additional eligibility criteria.

  • Forgiveness for interns: Get $2,000 in loan forgiveness if you complete a three-credit internship and apply for forgiveness within one year of graduation. The forgiven amount is taxable as income.

  • Interest forgiveness for nurses: Licensed registered nurses in Rhode Island can make 48 months of payments interest-free.

  • Income-based repayment: Pay a maximum of 15% of income per month if you're unable to afford your bill. The remaining balance will be forgiven after 25 years, though the forgiven amount will be taxed.

  • Death or disability discharge: Yes.

  • Loan discharge if co-signer dies or becomes disabled: No.

Repayment preferences

  • Allows greater-than-minimum payments via autopay: Yes.

  • Allows biweekly payments via autopay: No, but borrowers can make weekly payments.

  • Loan servicer: RISLA.

  • In-house customer service team: Yes.

  • Process for escalating concerns: Yes.

  • Borrowers get assigned a dedicated banker, advisor or representative: No.

  • Average time from application to approval: Typically one business day.

Before applying for a RISLA student loan

Before taking out a RISLA student loan or any other private student loan, exhaust your federal student loan options first. Submit the Free Application for Federal Student Aid, known as the FAFSA, to apply.

» MORE: NerdWallet’s FAFSA Guide

Compare your private student loan options to make sure you’re getting the best rate you qualify for. In addition to interest rates, look at lenders’ repayment alternatives and the flexibility they offer to borrowers who struggle to make payments.

If you aren’t eligible for a RISLA student loan

If RISLA denies your student loan application, the lender will let you know why. Depending on the reason, you may want to consider other lenders or, if you haven’t already, try applying with a co-signer.

If you don’t have access to a co-signer — or still aren’t eligible with one — consider lenders that don’t require co-signers or specialize in bad or no credit student loans.

STUDENT LOANS RATINGS METHODOLOGY

NerdWallet believes the best student loan is one you can repay at the lowest interest rate you can get. That's why NerdWallet’s student loan ratings reward lenders that offer a variety of loan terms, limit their fees and penalties, and extend borrowers multiple options to avoid default. Points are also awarded for soft credit checks, underwriting transparency and other consumer-friendly features. Use these ratings as a guide, but we encourage you to shop around for the lowest interest rate you can qualify for. NerdWallet does not receive compensation for its reviews. Read our editorial guidelines

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