Rating agency affirms AAA rating on 2008 Student Loan Authority bonds
The ratings agency Fitch has affirmed the AAA rating on Rhode Island Student Loan Authority (RISLA) 2008 senior bonds. Fitch cites the Rating Outlook on the bonds as Stable, as the trust is performing in-line with expectations based on collateral performance data as of Sept. 30, 2012.
RISLA 2008 bond proceeds were used to fund RISLAs fixed rate Rhode Island Family Education Loans, which are originated and serviced at the Rhode Island Student Loan Authority in Warwick.
"These high ratings help RISLA offer some of the lowest fixed rates on education loans in the country," Charles P. Kelley, CFA, CPA, executive director of the Student Loan Authority, said in a statement. He also attributed the low default rates on the loans to RISLA's financial literacy and default prevention programs. "We believe it is critical to educate students and parents to borrow responsibly and what their repayment options are before they borrow.
The Rhode Island Student Loan Authority is a non-profit state authority providing $30 million annually in safe, low fixed rate education loans to students and families. Only 2.13 percent of RISLAs Rhode Island Family Education Loans that have entered repayment have defaulted over a 20-year history. Additional information is available at www.risla.com.