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As the prior existing loans are completely paid off, any benefits associated with those loans are no longer applicable to the new RISLA refinance loan.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 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.

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, Cosigner

• 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

Refinancing with a private lender may eliminate some benefits and protections of your current student loans.