Responding to growing concern by students and parents faced with the daunting cost of a college education, the non-profit Rhode Island Student Loan Authority (RISLA) is pleased to unveil an affordable loan program that will help thousands of families pay for college this fall. The Rhode Island Family Education Loan Program features a low fixed rate of 7.76% for the fifteen year life of the loan. The fixed rate loan protects families from increasing monthly payments that variable rate loans are subject to as interest rates rise. The program has the added advantage of being offered by RISLA, a trusted non-profit organization that has helped thousands of students realize the dream of a higher education.
“As students and parents face rising college costs and a turbulent economy, I commend the non-profit Rhode Island Student Loan Authority for working hard to develop a loan program that makes higher education affordable,” said General Treasurer Frank T. Caprio, also a board member of RISLA. “Education loan borrowers are looking for the safety of a fixed-rate loan, and because we finance these loans with tax-exempt bonds, RISLA offers a very competitive rate which is lower than what Rhode Island parents can receive anywhere else,” said Treasurer Caprio.
The RI Family Education Loan Program is exclusively available to students attending eligible colleges in the state, or to Rhode Islanders attending most out of state institutions. Dr. Anthony Santoro, Chairman of RISLA, stated “One of RISLA’s goals is to save families the high cost of interest that typically accrues while the student is in school.” Repayment of the RI Family Education Loan begins within 60 days of final disbursement (typically in March for a regular academic year), immediate repayment will save the average family $10,090 in interest (based on $20,000 of borrowing) versus a deferred loan and also enables RISLA to offer families that low 7.76% fixed rate. Families can borrow up to $35,000 or the cost of education less other financial aid, whichever is less. The loan also offers a stable and predictable monthly payment of $100.08 per $10,000 borrowed and there is no penalty for prepayment!
Families can quickly apply online at http://www.risla.com to see if they may qualify. There is no application fee or the need to demonstrate financial need. For further information and full details on the Rhode Island Family Education Loan Program, please call 401-468-1700, or visit www.RISLA.com. Students and families should explore all Federal loan options before choosing to borrow a non-Federal education loan.
