Lowest Fixed Interest Rates in RI Student Loan Authority’s History: Kelley on Financing College LIVE
Monday, June 28, 2021
Rhode Island Student Loan Authority Executive Director Charles Kelley appeared on GoLocal LIVE where he spoke to the tools available to families -- during the lowest fixed interest rates in the organization's history.
"RISLA has been around for 40 years, and I confess, I’ve been there about 30," said Kelley. "Our mission has sort of grown over the years — before we just provided education loans, but we saw a need for financial literacy, planning for college, help with financial aid forms."
"So we established the college planning center in the Warwick Mall which was virtual all of this past year, but our mission is still to provide some of the lowest fixed rate education loans in the country, which helps lower the cost for higher education for our students and families," he added.
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Lowest Interest Rates in RISLA History
"This is the lowest fixed interest rate in our history," said Kelley. "So this year for a typical ten-year repayment loan, if someone pays via automatic ACH, it’s 2.99% percent, so basically a fixed-rate loan for the life of the loan, and we do have deferred options and we raise our money through the tax-exempt bond market, so we’re able to borrow very inexpensively and we pass those savings on to students and families."
"Many families feel they can’t afford to make payments while they’re in school, so we have what’s called a 15-year no payments until the student’s out of school and for six months, and then it’s repaid after 15 years — and that’s at 4.7%," he added.
Post-Pandemic Planning
Kelley spoke to students returning to school full time following the pandemic — and what that means for borrowers.
“If there is a resurgence — and I hope it doesn’t happen — we can adjust down what they need to borrow for the second semester, if they’re going to be living from home and studying remotely, they’re not going to be charged interest until funds are actually disbursed," said Kelley of borrowers.
"For years, we’re even the only one — other than the federal government — to offer income based repayment, so should there be hardships from unemployment, medical issues, whatever, we can adjust the individual’s monthly payment to fit their income and situation," he added. "Currently that has been a tremendous help during COVID. "
To learn more about RISLA -- and its programs -- go here.
RISLA appeared as part of a paid content partnership.
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