Rhode Island Code of Regulations Title 850 - Student Loan Authority
Rhode Island Code of Regulations Title 850 — Student Loan Authority
Overview
Title 850 governs the Rhode Island Student Loan Authority (RISLA), a state agency responsible for managing and regulating student loan programs designed to assist Rhode Island residents in financing higher education. RISLA offers loan products, manages loan servicing, and administers borrower protections and assistance programs.
Purpose of Title 850
Facilitate Access to Higher Education: Provide affordable loan options to students and families.
Regulate Loan Programs: Establish rules for loan origination, repayment, default prevention, and borrower rights.
Protect Borrowers: Ensure transparency, fairness, and assistance for borrowers facing difficulties.
Manage Loan Servicing: Outline responsibilities for loan servicing, collections, and dispute resolution.
Key Provisions of Title 850
1. Loan Eligibility and Origination
Defines who qualifies for student loans, often Rhode Island residents enrolled in accredited institutions.
Specifies application procedures, required documentation, and loan approval processes.
Sets loan limits, interest rates, and terms.
2. Repayment Terms
Details repayment schedules, including deferment, forbearance, and income-based options.
Specifies interest accrual and capitalization rules.
Provides options for loan consolidation or refinancing within the Authority’s programs.
3. Default Prevention and Assistance
Requires notification procedures for delinquent borrowers.
Sets forth options for rehabilitation or reinstatement of defaulted loans.
Establishes borrower education programs to encourage timely repayment.
4. Loan Servicing and Collections
Outlines servicer responsibilities for account management, payment processing, and customer service.
Provides procedures for handling disputes, corrections, and refunds.
Specifies methods and limits on collection actions.
5. Borrower Rights and Protections
Ensures clear disclosures about loan terms and obligations.
Provides mechanisms for complaint resolution.
Protects borrowers from unfair or deceptive practices.
Enforcement and Compliance
The Authority monitors compliance with these rules among its loan servicers and administrators.
It may impose sanctions or corrective actions for violations.
Borrowers have avenues to appeal decisions or file complaints within the Authority.
Illustrative Case Law Principles (Hypothetical)
1. Johnson v. Student Loan Authority — Disclosure Violations
Facts: Johnson claimed the Authority failed to disclose changes in interest rates on his loan.
Holding: The Authority was required to provide clear, timely disclosures, and failure to do so invalidated certain charges.
Principle: Transparent communication is essential to protect borrower rights.
2. Smith v. Student Loan Authority — Default Rehabilitation
Facts: Smith sought reinstatement of his loan after defaulting.
Holding: The Authority’s refusal was overturned because it did not properly consider Smith’s rehabilitation efforts.
Principle: Borrowers are entitled to fair consideration of rehabilitation applications.
3. Brown v. Student Loan Authority — Dispute Resolution
Facts: Brown disputed the calculation of his repayment schedule.
Holding: The Authority was required to provide a prompt and thorough review of the dispute.
Principle: Effective dispute resolution mechanisms are vital for borrower confidence.
Summary
Title 850 governs the Rhode Island Student Loan Authority’s administration of student loans.
It sets rules for loan eligibility, repayment, servicing, and borrower protections.
Transparency, fairness, and assistance programs are central goals.
Enforcement mechanisms ensure compliance by loan servicers.
Borrowers have rights to disclosures, dispute resolution, and rehabilitation.
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