RISLA Review: Student Loan Refinancing and Private Student Loans
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Student loan ratings
4.5
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.
RISLA Student Loan Refinance review
Pros
Income-based repayment plan available, with forgiveness after 25 years.
Cons
No co-signer release available.
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.
How RISLA could improve
RISLA could improve its student loan refinance product by offering:
More than 12 months of forbearance.
A co-signer release program.
How much can refinancing save?
RISLA student loan refinancing details
- Interest rates, fees and terms
Soft credit check to qualify and see what rate you’ll get: Yes.
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.
- Requirements
Financial
Minimum credit score: 680.
Minimum income: $40,000.
Typical credit score of approved borrowers: 748.
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: Did not disclose.
- Repayment options
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.
- Customer service
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.
STUDENT LOAN REFINANCE RATINGS METHODOLOGY
Our survey of more than 29 banks, credit unions and online lenders offering student loans and student loan refinancing includes the top 10 lenders by market share and the top 10 lenders by online search volume, as well as lenders that serve specialty or nontraditional markets.
We consider 41 features and data points for each financial institution. Depending on the category, these include the availability of biweekly payments through autopay, minimum credit score and income requirement disclosures, availability to borrowers in all states, extended grace periods and in-house customer service.
The stars represent ratings from poor (one star) to excellent (five stars). Ratings are rounded to the nearest half-star.
Read more about our ratings methodologies for student loan refinance and our editorial guidelines.
RISLA Private Student Loan review
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
- Interest rates, fees and terms
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.
- Requirements
Financial
Minimum credit score: 680.
Minimum income: $40,000.
Typical credit score of approved borrowers or co-signers: 785.
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.
DACA borrowers: Not eligible.
Location: Available in all 50 U.S. states.
Must be enrolled half-time or more: No.
Loan can be used for past due tuition: No.
Types of schools served: Any school authorized to receive federal aid.
Percentage of borrowers who have a co-signer: Did not disclose.
- Repayment options
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.
- Customer service
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 LOAN RATINGS METHODOLOGY
Our survey of more than 29 banks, credit unions and online lenders offering student loans and student loan refinancing includes the top 10 lenders by market share and top 10 lenders by online search volume, as well as lenders that serve specialty or nontraditional markets.
We consider 40 features and data points for each financial institution. Depending on the category, these include the availability of biweekly payments through autopay, minimum credit score and income requirement disclosures, availability to borrowers in all states, extended grace periods and in-house customer service.
The stars represent ratings from poor (one star) to excellent (five stars). Ratings are rounded to the nearest half-star.
Read more about our ratings methodologies for student loans and our editorial guidelines.
Frequently asked questions
- Is RISLA good for student loans?
RISLA is a 4.5 star lender based on NerdWallet's student loan rating system. Our ratings prioritize low interest rates and flexible repayment options that allow borrowers to repay loans faster and avoid default.
- Do you have to live in Rhode Island for a RISLA loan?
No. RISLA lends to students in all 50 states.
- Who should get a RISLA student loan?
A RISLA student loan is good option for borrowers who value payment flexibility. RISLA also offers incentives for qualifying nursing students.
