WARWICK – Fitch Ratings Ltd. has affirmed the “AAA,” stable rating on the R.I. Student Loan Authority 2008 senior bonds.
According to a RISLA release, Fitch affirmed the bonds as stable because the bonds are “performing in-line with expectations based on collateral performance data” as of Sept. 30, 2012.
The 2008 bond proceeds were used to fund RISLA’s fixed-rate Rhode Island Family Education loans.
“These high ratings help RISLA offer some of the lowest fixed rates on education loans in the country,” Charles P. Kelly, executive director of the student loan authority, said in a statement.
Kelly also attributed the low default rates of the student loan authority’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,” added Kelly.
The R.I. Student Loan Authority is a nonprofit state authority that provides $30 million annually in “safe, low-fixed-rate education loans to student and families.” According to a release, only 2.13 percent of RISLA’s family education loans that have entered repayment have defaulted in the authority’s 20-year history.