Bill Empowers RI Student Loan Authority to Offer Crushing College Debt Relief

RHODE ISLAND—Rhode Islanders struggling to pay off college loans will soon have new options through the Rhode Island Student Loan Authority to refinance and consolidate debt to get lower interest rates.

Governor Gina Raimondo on Wednesday signed into law legislation that gives the quasi-state agency the power to issue bonds and buy and invest in its own bonds and notes for the purposes of student debt consolidation.

The agency, which already offers state-based education loans and college admissions and financial aid help, will be able to offer debt-saddled Rhode Islanders a chance to lock in lower interest rates and better terms, according to the prime sponsors of the House and Senate bills.

“After introducing this legislation for the past couple of sessions, the signing of this bill is excellent news for Rhode Island graduates and students struggling with their educational debt,” said Representative Marcello (D-Dist. 41, Scituate, Cranston), in a press release. “With the costs of higher education rising on a yearly basis and wages remaining stagnant year in and year out, too many of our students are coming out of college with crippling amounts of debt that remains with them for decades after graduation and this is completely unacceptable. This legislation will allow RISLA to help our state’s current and former students manage the growing debt that has had a stagnating effect on their adult lives.”

Cranston Sen. Hannah Gallo said the RISLA is already successful in the sense that it has one of the lowest bond rates and student loan rates in the country.

"This legislation will help them enhance the great work they're already doing," Gallo said.

Read the House bill: http://webserver.rilin.state.r...

Read the Senate bill: http://webserver.rilin.state.r...