An interest rate is the percentage of the amount borrowed (the principal) that a lender charges for providing the loan.

Topic: Interest & Repayment Basics

Interest accrues when loan funds are disbursed.

• For deferred loans, payments are not required while the student is in school or during the grace period.

• Any unpaid interest that accrues during this time is added to the principal balance when repayment begins — this is called capitalized interest.
  

• Once added to principal, interest accrues, resulting in unpaid capitalized interest, which is why many borrowers choose to pay during deferment.

• Capitalized interest may also occur during the repayment period after a period when the full payment is not due, such as during forbearance or Income-Based Repayment.

Topic: Interest & Repayment Basics

No. Interest begins to accrue only after the loan funds are disbursed, not when the application is approved.  

Topic: Interest & Repayment Basics

Yes. For deferred loans, borrowers and cosigners receive statements showing accrued interest.

• Either may choose to make payments during this time.

• Paying interest while in school can significantly reduce the total cost of the loan.

• For Immediate Repayment loans, principal and interest payments are required while the student is in school.

Topic: Interest & Repayment Basics

With an interest-only repayment option, monthly payments cover only interest while the student is in school and during the grace period after leaving school.

After the student leaves school and the grace period ends, full payments (principal and interest) are required for the remainder of the repayment term.

Topic: Interest & Repayment Basics

RISLA student loans are available to:

• Undergraduate and graduate students attending Title IV degree-granting public or nonprofit institutions
• Parents of eligible students
• Students enrolled at least half-time
• Borrowers and cosigners who are U.S. citizens or permanent residents (non-conditional green card)
• Students who are at least 18 years old by December 31 of the year that funds are disbursed

Topic: Eligibility & Requirements

Eligibility is based on a credit review and may include income verification, debt-to-income evaluation, and other financial criteria.

Topic: Eligibility & Requirements

Minimum income requirements vary by loan program.

• Borrowers or cosigners must have their own income.

• A spouse or domestic partner living at the same address may be included to meet the requirements.

Topic: Eligibility & Requirements

Repayment depends on the loan type:

• Immediate Repayment: Begins 30 days after final disbursement.
• Undergraduate Deferred Repayment: Begins six months after the student leaves school, not to exceed 78 months total (72 months in school + 6-month grace). Students must be enrolled at least half-time, as determined by the school, to qualify.
• Graduate Deferred Repayment: Begins six months after the student leaves school, not to exceed 42 months total (36 months in school + 6-month grace). Graduate students must be enrolled at least half-time.

Topic: Repayment Options

• Yes. You may pay more than the minimum monthly payment at any time.

• Additional payments reduce the principal balance, shorten the loan term, and lower total interest paid. There is no prepayment penalty.

• RISLA also has an online payment calculator that allows borrowers to determine the monthly payment needed to shorten the loan term to their preferred term.

Topic: Repayment Options

The minimum payment is calculated based on the loan amount, interest rate, and term. If the calculated payment is less than $50 per month, the minimum payment will be $50, and the loan term will be adjusted accordingly.

Topic: Repayment Options

Yes. RISLA offers:

• Internship Rewards Program: Eligible borrowers may receive a $2,000 principal reduction for completing a qualifying internship.
• Nursing Rewards Program: Qualified Rhode Island nurses may receive interest rates reduced to 0% for 48 months.

Topic: Rewards & Benefits

Loans may be deferred while the student is in school, with a six-month grace period after leaving school (subject to maximum program limits).

Topic: Deferment, Forbearance, & Hardship Support

Forbearance allows temporary payment relief for unforeseen circumstances such as unemployment, disability, or financial hardship.

• Loans disbursed before July 1, 2021, may qualify for 12 months of forbearance.

• Loans disbursed on or after July 1, 2021, may qualify for up to 24 months of forbearance.

Topic: Deferment, Forbearance, & Hardship Support

Yes. RISLA’s Income-Based Repayment (IBR) plan is available for borrowers experiencing financial hardship.

• Eligibility is reviewed annually using financial documentation.

• Borrowers are encouraged to use the IBR Payment Calculator before applying.

Topic: Deferment, Forbearance, & Hardship Support

RISLA encourages students to borrow only what they need after using scholarships, grants, and federal aid. A general guideline is not to borrow more than your expected first-year gross income in your chosen career field after graduation.

Topic: Borrowing Guidance

• Minimum: $1,500
• Annual maximum: Up to Cost of Attendance minus other financial aid
• Aggregate maximums:
  • Individual: $180,000
  • Family: $200,000
  • Graduate program maximums vary by program

Topic: Borrowing Guidance

RI Advantage is an exclusive student loan rate discount for:

• Rhode Island residents attending college anywhere in the U.S.
• Students attending any Title IV college or university in Rhode Island.
• Eligible schools include Brown University, Bryant University, Community College of Rhode Island (CCRI), Johnson & Wales, New England Institute of Technology (NEIT), Providence College, Rhode Island College, Rhode Island School of Design (RISD), Roger Williams University, Salve Regina University, and the University of Rhode Island.

Topic: RI Advantage Discount

Yes. As a nonprofit education lender, RISLA offers borrower protections, including loan forgiveness in cases of the student borrower's or the benefiting student's death or permanent disability, as well as alternative repayment options, such as Income-Based Repayment and Forbearance.

Topic: Borrower Protections

Yes. Under the SCRA, active-duty military borrowers receive an interest rate cap of 6% on RISLA loans originated before military service. Service members in active duty may also qualify for military deferment.

Topic: Borrower Protections

Yes. Multi-year loans are available, subject to annual credit review and eligibility approval for both the borrower and cosigner.

Topic: Multi-Year Loans

RISLA’s refinance loan allows borrowers to pay off one or more existing qualified student loans in full, combining the balances into a single refinance loan. Qualified student loans can be federal or private. Borrowers can choose which existing loans to include (or exclude) in the refinance loan, but most borrowers choose all of the loans with a higher interest rate than the refinance loan. By combining multiple loans into one RISLA refinance loan with a lower interest rate, borrowers save money by paying lower interest amounts and save time and effort by only paying one servicer - RISLA.

As the prior existing loans are completely paid off, any benefits associated with those loans are no longer applicable to the new RISLA refinance loan. Only the RISLA benefits of the RISLA refinance loan apply to the new loan. Also, any cosigners on the prior loans are no longer obligated on the new refinance loan, allowing the borrower to select a new cosigner (which lowers the interest rate) or choose not to have a cosigner.

Topic:  Refinancing Student Loans

RISLA’s refinance loan allows borrowers to pay off one or more existing qualified student loans in full, combining the balances into a single refinance loan.

RISLA allows borrowers to refinance while still attending school or after leaving.

• Pay Now - Reduce the interest rate on current student loan repayments to save. Loan terms are available for 5-, 10-, or 15-year terms.
• Pay Later - This is only available to students still enrolled at least half-time to help them reduce the cost of accruing interest on their student loans. Repayments for the refinanced loan begin 6 months after the student is no longer in school. This is a 15-year loan.

Note: Different interest rates apply for the pay now or pay later refinance loans.

Topic: Refinancing Student Loans

• The repayment term chosen by the borrower is 5-,10-, or 15-year

• Borrower’s and/or cosigner’s (if applicable) credit score

• Eligibility status for RI Advantage discount – see below. Whether there is a cosigner (having a cosigner lowers the interest rate)

Funds are awarded on a first-come, first-served basis. An additional 0.25% can reduce the fixed rate received at that time if you use the auto-pay feature during repayment.

Topic:  Refinancing Student Loans

No, as long as you meet the other loan qualifications, you are not required to meet any minimum degree level. However, your degree level may affect your maximum loan limit. 

Topic:  Refinancing Student Loans

• The benefiting student must be an RI resident looking to refinance a qualifying education loan

• Non-resident students attending or having attended a Rhode Island college or university who are looking to refinance a qualifying student loan are also eligible.

Topic:  Refinancing Student Loans, RI Advantage

The singular difference between an RI Advantage refinance loan and an RISLA loan is the ability to offer an exclusive discount on the interest rate because of the borrower’s Rhode Island affiliation. See above. All borrower benefits and borrower protections are the same for both loan programs. 

Topic:  Refinancing Student Loans, RI Advantage

RISLA Refinance is a private student loan refinance program in which you can combine outstanding loan balances of any private and/or Federal qualified education loans into one loan with the goal of reducing the interest rate to save on the total cost of the loan. In addition to lowering your interest rate, by selecting the loan term you want, you may also be able to lower your monthly payment with the convenience of just one monthly payment versus several. Private student loan refinancing offers an interest rate primarily based on the borrower’s (or cosigner’s, if applicable) credit score and may include other program discounts, if eligible.

Federal Loan Consolidation is a government program allowing the combination of ONLY existing Federal student loans. The interest rate for a Federal Consolidation loan is automatically determined by calculating the weighted average of the loans being consolidated and then rounded up to the nearest one-eighth of 1%. The credit score is not used in this process.

Topic:  Refinancing Student Loans, Federal Loan Consolidation

Qualified:

• Any school-certified private student loans
• All federal loans
  • Direct Subsidized
  • Direct Unsubsidized
  • Grad PLUS
  • Parent PLUS
    

Not Qualified:

• Private loans taken out before 02/14/10 do not qualify for RI Advantage.
• Education loans that have been previously refinanced with a private loan lender typically do not qualify for RI Advantage rates.

IMPORTANT NOTE: Before considering refinancing any federal or private student loans, carefully review the federal or private benefits that will be lost once the loans are refinanced with a different lender. View Federal student loan benefits at: https://studentaid.gov/understand-aid/types/loans/federal-vs-private

Although the RISLA refinance loan benefits apply to the new refinance loan, all benefits applicable to any prior loan are relinquished.

Topic:  Refinancing Student Loans, RI Advantage

No. There are no application, origination, disbursement, or late fees on RISLA refinancing loans. 

Topic:  Refinancing Student Loans, Fees

No, you may pay off your loan early without any penalty.

Topic:  Refinancing Student Loans, Penalties

Cosigners are not required if you meet the loan's qualifications, but having a cosigner who meets the qualifications lowers the interest rate.

Topic:  Refinancing Student Loans, Cosigner

Yes. The borrower may apply for cosigner release if monthly payments are made on time and consecutively for at least 24 months. The borrower’s cosigner release application will then be evaluated to determine whether the borrower's individual underwriting qualifications are met to release the cosigner.

Due to current State laws, the Cosigner Release Program is not available to residents of Colorado, Connecticut, Maine, Nevada, and Washington, D.C.

Topic:  Refinancing Student Loans, Fees

No. There are no application, origination, disbursement, or late fees on RISLA refinancing loans. 

Topic:  Refinancing Student Loans, Fees

• Minimum: $1,500

• The maximum amount you are eligible to borrow is based on the highest degree earned by the borrower, with a maximum of $350,000.

Aggregate maximums:

• Undergraduate: $200,000
• Parent: $200,000
• Graduate program maximums vary by degree program
• Graduate $250,000 (Master's or Doctorate)
  • Professional $300,000 (PA, DPT, PharmD, NP, DVM, JD, OTD)
  • Select Professional $350,000 (MD, DO, DMD, DDS)

Topic: Refinancing Student Loans, Loan Limits

The following items will be requested for your application. Note: items in BOLD are additional documentation required for borrowers who want to take advantage of the RIAdvantage discounted rate.

• Most recent paycheck stub showing year-to-date earnings for the borrower and cosigner.
• Most recent W2 for borrower and cosigner. If overtime, bonus, or commission are going to be used as part of your income, include your two most recent W-2s.
• Please provide the most recent billing statement dated within 30 days for all loans you want to refinance, showing no past-due balances.
• If applicable, self-employed borrower/cosigner: Include 2 years of Federal Tax Returns, including Schedules C and E.
• If applicable, retired borrower/cosigner: Include the most recent 1099s for all retirement income and the most recent proof of payment being deposited.
• Application and Promissory Note (including the Private Education Loan Applicant Self-Certification form)
• Benefiting Student's proof of address. Acceptable documentation is a current driver’s license or State ID (front and back for both), a mortgage statement, or a major utility bill.
• The School Certification Form for the underlying loans being refinanced is available from the college or university’s financial aid office.

Submit the loan details page of the loan(s) to be refinanced, which displays the school attended and the loan type. 

Topic:  Refinancing Student Loans, Required Supporting Documents 

For Immediate Refinance Loans (Pay Now) and Deferred Refinance Loans (Pay Later):
Forbearance is available for instances such as unemployment, disability, and hardship. Refinance Loans are currently eligible for up to 24 months of forbearance time.

For Immediate Refinance Loans (Pay Now):
Deferment is available if you are enrolled at least half-time in a graduate degree-granting program and provide proof of enrollment. Also, you must make at least one payment before a deferment can be granted. The maximum deferment time for graduate students is 36 months. RISLA Immediate Refinance Loans do not have a grace period.

For Deferred Refinance Loans (Pay Later): Deferment is available during the time you are enrolled at least half-time in an undergraduate or graduate degree-granting program. The maximum deferment time for undergraduates is 48 months. The maximum deferment time for graduate students is 36 months. Repayment begins after a 6-month grace period once the student leaves school.

Topic:  Refinancing Student Loans, Forbearance, Deferment

No. There are no application, origination, disbursement, or late fees on RISLA refinancing loans. 

Topic:  Refinancing Student Loans, Fees

No. There are no application, origination, disbursement, or late fees on RISLA refinancing loans. 

Topic:  Refinancing Student Loans, Fees