Financial literacy program helps families save on their college loans

RISLA will offer zero origination fees on deferred repayment loans for 2012/13 to students who complete an approved financial literacy course.

Warwick, RI – April 20, 2012…Rhode Island Student Loan Authority, a non-profit state authority, has introduced a new program that will help families reduce the cost of borrowing while becoming more financially literate.

Students and parents who take out a deferred repayment Rhode Island Family Education Loan can have the 4% origination fee waived by taking a RISLA-approved financial literacy course.
All immediate repayment Rhode Island Family Education Loans for the 2012/13 academic year offer zero origination fees.

“Choosing the immediate repayment option saves the average family thousands of dollars in financing costs. We always encourage families to explore this option first, but it isn’t always an option for everyone.” stated Charles Kelley, Executive Director of the Rhode Island Student Loan Authority. “We want to give families who choose to defer payments the opportunity to save on fees while ensuring they fully understand credit, budgeting and education financing first.”

The Rhode Island Family Education Loan is a state-based program that offers low fixed interest rates. Students and parents who choose the immediate repayment option receive a fixed interest rate of 6.49% and have a ten year repayment term. Families who choose the deferred repayment option receive a fixed interest rate of 7.49% and have a 15 year repayment term.

This loan program offers rewards for nursing students and nurse educators after graduation and is forgiven in the unfortunate incident of student death. There are no pre-payment penalties on the Rhode Island Family Education Loan.

Rhode Island Student Loan Authority (RISLA) is a non-profit state authority that has been helping families pay for college for thirty years. RISLA gives back to the community with free college planning and financial aid counseling through its College Planning Center of Rhode Island and by offering free financial literacy sessions at colleges and organizations statewide. For more information on RISLA or to apply for a Rhode Island Family Education Loan, please visit risla.com.