- RISLA Overview: RISLA is a nonprofit, state-affiliated lender that offers in-school student loans and student loan refinancing across the US, with unique features like being its own loan servicer.
- Unique Income-Based Repayment Plan: RISLA provides the only private refinancing with an income-based repayment plan modeled after federal IBR, including loan forgiveness after 25 years.
- Fee-Free and Competitive Rates: RISLA charges no fees at all and offers fixed APRs ranging from 3.99% to 8.29%, with the lowest rates for Rhode Island-connected borrowers.
- Flexible Eligibility and Terms: Refinancing is available nationwide without a degree requirement, and borrowers can opt for 5, 10, or 15-year terms, with early co-signer release.
- Pros and Cons Summary: RISLA’s strengths include its borrower protections and self-service model, while limitations include fixed rates only, limited term options, and higher rates outside Rhode Island.
RISLA Overview
The Rhode Island Student Loan Authority (RISLA) is a nonprofit, state-affiliated educational lender that offers both in-school student loans and student loan refinancing nationwide. Founded to serve Rhode Island students, RISLA has expanded its refinancing program to all 50 states and Washington, D.C. Unlike most private refinancing lenders, RISLA is its own loan servicer, meaning borrowers deal with the same organization from application through repayment rather than being handed off to a third-party servicer like MOHELA or AES.
What makes RISLA genuinely unique in the private refinancing market is its income-based repayment (IBR) plan, modeled after the original federal IBR program. If a borrower experiences temporary financial hardship, RISLA will calculate a reduced payment based on income, household size, and federal poverty guidelines. If the borrower remains on IBR long-term, the repayment term can extend up to 25 years, and any remaining balance after 25 years is forgiven. No other private student loan refinancing lender in our review series offers income-based repayment or private loan forgiveness.
Important: Refinancing federal student loans with RISLA means losing access to federal income-driven repayment plans, Public Service Loan Forgiveness, and federal forbearance protections. However, RISLA’s own IBR and forgiveness provisions provide a partial replacement for these protections, making RISLA one of the lowest-risk options for borrowers concerned about losing federal safety nets.
Pros and Cons of RISLA Student Loan Refinancing
Pros
- Income-based repayment is available. The only private refinancing lender offering IBR is modeled after the federal program, with payments adjusted annually based on income and household size. Forgiveness of the remaining balance after 25 years.
- Zero fees of any kind. No origination, no application, no disbursement, no late fee, no returned payment fee, no prepayment penalty. The cleanest fee structure in the refinancing market.
- Low rate ceiling. Fixed APR caps at 8.29% (with autopay and RI Advantage), among the lowest ceilings in the refinancing market. Even without the RI Advantage discount, the ceiling remains competitive.
- No degree requirement for refinancing. Borrowers without a degree can refinance, though the degree level affects the maximum loan amount. This is rare among refinancing lenders, most of which require at least a bachelor’s degree.
- Co-signer release after 24 months. Available after 24 consecutive on-time payments with satisfactory credit criteria.
- Nurse interest forgiveness. New nurses employed at least half-time in Rhode Island pay zero interest for up to four years after graduation. Borrowers may also qualify for $2,000 in forgiveness for completing eligible internships.
- In-school refinancing (Pay Later). Students still enrolled at least half-time can refinance existing loans to a lower rate with payments deferred until six months after leaving school.
- Self-serviced loans. RISLA services its own loans rather than outsourcing to a third-party servicer, providing continuity from origination through repayment.
Cons
- Fixed rates only. RISLA does not offer variable rate options. Borrowers who want to take advantage of potentially declining rates will need to look elsewhere.
- Limited repayment terms. Only 5, 10, or 15 years for Pay Now loans (and 15 years for Pay Later). Competitors like Laurel Road and Splash offer terms up to 20 or 25 years.
- Best rates require a Rhode Island connection. The RI Advantage discount is available only to Rhode Island residents or students who attended Rhode Island schools. Non-RI borrowers pay higher rates than RISLA does not publicly disclose.
- Cannot transfer parent loans to child. RISLA refinances parent loans but does not allow debt transfer from parent to child, a feature offered by Laurel Road and SoFi.
- Not BBB rated or accredited. Unlike competitors backed by major banks, RISLA does not have a BBB profile, though it has zero CFPB complaints.
RISLA Student Loan Refinancing
RISLA (Rhode Island Student Loan Authority) earns a 4.0 out of 5.0 and is our top pick for student loan refinancing because it offers the only income-based repayment plan on a private refinanced loan. If you hit financial hardship, RISLA will recalculate your payment based on income and household size, and forgive any remaining balance after 25 years. No other private refinancing lender matches this level of borrower protection.
The fee structure is the cleanest in the market: zero origination, zero late fees, zero returned payment fees, and zero prepayment penalty. Fixed rates cap at 8.29% (with autopay and RI Advantage), meaning even worst-case pricing beats most competitors' mid-range. Co-signer release is available after 24 consecutive on-time payments. RISLA services its own loans, so you deal with the same organization from application through final payment.
The limitations are fixed rates only (no variable option), only three term lengths (5, 10, or 15 years), and the best rates reserved for Rhode Island-connected borrowers through the RI Advantage discount. Non-RI borrowers will see higher rates. NerdWallet reports a minimum credit score of 680 and minimum income of $40,000, which are above average for refinancing.
- Fixed APR: 3.99% – 8.29% (with autopay & RI Advantage)
- Only private refi lender offering income-based repayment with forgiveness after 25 years
- Zero fees of any kind: no origination, no late, no prepayment penalty
- No degree requirement for refinancing (degree level affects max loan amount)
- Co-signer release after 24 consecutive on-time payments
Rates and Fees
RISLA offers fixed rates only. Pay Now (immediate repayment) rates range from 3.99% to 8.29% APR, and Pay Later (deferred repayment for in-school borrowers) rates range from 5.99% to 8.57% APR. The lowest rates include the 0.25% autopay discount and the RI Advantage discount for Rhode Island-connected borrowers. Non-RI borrowers will pay higher rates, though RISLA does not disclose the exact differential.
The fee structure is the cleanest in the refinancing market. RISLA charges zero fees of any kind: no origination, no application, no disbursement, no late fee, no returned payment fee, and no prepayment penalty. The only financial penalty is potential collection fees in the event of default. This makes RISLA’s effective cost perfectly aligned with the stated APR, with no hidden costs.
Loan Terms and Repayment
Pay Now borrowers can choose 5, 10, or 15-year terms. Pay Later borrowers receive a 15-year term with payments deferred until six months after leaving school. First payments on Pay Now loans are due approximately 30 days after disbursement. Loan amounts range from $7,500 to $250,000, depending on the highest degree earned.
The income-based repayment plan is RISLA’s most distinctive feature. Borrowers experiencing temporary financial hardship can apply for reduced payments calculated using income, co-signer income, household size, and federal poverty guidelines. If the calculated payment is lower than the standard payment, the borrower qualifies for IBR for one year, renewable annually. The repayment term can extend up to 25 years on IBR, with forgiveness of any remaining balance. This provides a meaningful safety net that partially replaces the federal IBR protections lost through refinancing.
Additional protections include temporary forbearance for financial hardship, military benefits under the Servicemembers Civil Relief Act, and discharge upon permanent disability or death of the student borrower.
Eligibility and Accessibility
RISLA refinancing is available nationwide to U.S. citizens and permanent residents. No minimum degree level is required, though degree level affects the maximum loan amount. Soft-pull prequalification is available with no impact on credit score.
Rhode Island residents and students who attended Rhode Island schools are eligible for the RI Advantage discount, which reduces interest rates by up to 1.75% (per RISLA’s 2024 claims). Private loans taken out before February 14, 2010, do not qualify for RI Advantage rates. Loans previously refinanced with another private lender typically do not qualify either.
Customer Experience
RISLA has an excellent consumer reputation. The lender has an excellent rating on Trustpilot and zero CFPB complaints in 2024. RISLA operates its own loan servicing, so borrowers deal with the same organization throughout the loan lifecycle. Customer support specialists are available by phone at 866-268-9419 for refinancing questions.
The primary limitation is limited operating hours and the absence of a BBB rating. RISLA’s nonprofit, state-affiliated structure provides mission-driven lending but lacks the branch access and scale of bank-backed competitors. The scholarship program (four $2,000 scholarships monthly through Knowledge for College) and college planning services add value beyond the loan product.
Final Verdict on RISLA
RISLA earns a 4.0 out of 5.0 in our refinancing review framework, the highest score in our refinancing series. Its combination of income-based repayment, zero fees, low rate ceiling, no degree requirement, co-signer release, and self-serviced loans is unmatched in the private refinancing market. For borrowers who are hesitant to give up federal protections when refinancing, RISLA’s IBR plan and 25-year forgiveness provision provide the closest private-market equivalent.
The trade-offs are fixed rates only, limited-term options, and best rates restricted to Rhode Island-connected borrowers. The 680 credit score and $40,000 income minimums are above average. Borrowers outside Rhode Island should still prequalify to see their rates, but may find that competitors offer lower floors.
Bottom line: RISLA is the safest private refinancing option for borrowers who worry about losing federal protections. If income-based repayment on a private refinance loan matters to you, RISLA is the only game in town.
Frequently asked questions
Answers to your questions about RISLA student loan refinancing.
No. RISLA offers fixed rates only. If you want a variable rate, consider SoFi, Earnest, or Splash Financial.
No. RISLA does not require a minimum degree level, though your degree level may affect your maximum loan amount. This is rare among refinancing lenders.
It is modeled after the original federal IBR program. RISLA calculates payments based on income, household size, and federal poverty guidelines. If you stay on IBR long-term, the term can extend up to 25 years, with forgiveness of any remaining balance. However, the tax treatment of forgiven amounts may differ from federal forgiveness.
Yes. Co-signer release is available after 24 consecutive on-time monthly payments, provided the borrower meets RISLA’s credit criteria at the time of the request.
