Some Good Financial News in RI for College Students and Their Families
Some Good Financial News in RI for College Students and Their Families
The Rhode Island Student Loan Authority (RISLA), via its “RI Advantage” program, can now offer significant savings as a result of a new, lower-interest rate student loan refinance program.
For over 30 years, RISLA has issued tax-exempt bonds to fund low-cost education loans for Rhode Island residents and students attending school in Rhode Island. Year in and year out, these loans from RISLA have been the lowest or amongst the lowest interest rate loans available in the country.
New Development for Students
Recently, the IRS issued guidance which now makes it possible for RISLA to refinance loans with these same tax-exempt bonds. What this means is that RISLA’s cost of funds on the bonds we issue is now approximately 1.5% lower than what was previously and we pass this savings directly to our customers.
Chad Pastorius, Deputy Director of RISLA on GoLocal LIVE said, “New this year, the IRS issued some guidance last year that allows us to use tax-exempt bonds to fund education refinance loans and in December we issued $50 million in bonds for that purpose and rates will start under 4%. We expect our average borrower who refinances with us to pay around 5% depending on the loan term and other factors.”
"Refinance rates are now available as low as 3.99% and borrowers are eligible to refinance while still enrolled in school. This reduced rate loan feature, which we call the 'RI Advantage,' is available to Rhode Island residents and for out-of-staters who borrowed loans to attend school in Rhode Island," he added. "For qualified students or parents managing student loan repayment with high-cost private student loans or Federal PLUS loans, this program could save them thousands.
Major Savings
“We're here and hoping that more people will learn about it and take advantage of it...[especially with] rates this year for people who borrowed in the last year or two, you know the Parent PLUS Loan is over 9%, and many loans from other private lenders are 10%, 12% or even higher,” said Pastorius.
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