Iowa Student Loan Review: A Nonprofit Lender With Low-Interest Options

Advertiser Disclosure

Student Loan Hero Advertiser Disclosure

Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality and will make a positive impact in your life. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print understand what you are buying, and consult a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time. Please do your homework and let us know if you have any questions or concerns.

Iowa Student Loan

Students in college might think federal student loans or private student loans are their only borrowing options for school. But there’s a third option to consider: state-specific student loan programs.

One example is Iowa Student Loan, a nonprofit that helps students face their college costs head-on and gives borrowers a chance to refinance their student debt. Here’s what you need to know about Iowa Student Loan.

Iowa Student Loan Review

Iowa Student Loan offers private student loans to Iowa residents attending college around the country and students attending college in Iowa. Here’s an overview of what Iowa Student Loan offers:

Benefits and features of Iowa Student Loan options

Iowa Student Loan recommends that college students or those borrowing for a college student view these student loans as supplemental to other forms of student aid, including federal student loans.

Still, Iowa Student Loan offers many benefits for borrowers looking for affordable college financing options. Check out the major features available for each Iowa Student Loan option below.

Partnership Loan College Family Loan Reset Loan
Who can use this loan? Current undergraduate or graduate students from Iowa or attending an Iowa school Parents, relatives, or anyone looking to help an eligible student pay for college Student loan borrowers currently in repayment (both Iowa and out-of-state applicants accepted)
Student loan terms 10 or 15 years 10 or 15 years 5, 10, or 15 years
Repayment options in school Immediate, interest-only, or full deferment Immediate, interest-only, or full deferment Immediate
Minimum credit score 670 670 720
Loan fees None None None
Interest rate discounts 0.25% for autopay 0.25% for autopay 0.25% for autopay, 0.20% to 0.80% for IT or engineering professionals
Discharge for death or disability Yes Yes Yes
Option to add cosigner Yes Yes Yes
Cosigner release Yes No No

How Iowa Student Loan stacks up against other borrowing options

Thanks to affordable student loan rates and a lack of fees, Iowa Student Loan offers in-school borrowing options that are low-cost compared to most private student loans.

Iowa Student Loan rates also beat those offered on some federal student loans, such as PLUS Loans. Here’s a comparison of Iowa Student Loan in-school borrowing options versus federal student loans.

Partnership Loan College Family Loan Direct Unsubsidized Loan Parent PLUS Loan
Fixed rates* 5.80% to 7.22% 5.80% to 7.22% 4.45% 7.00%
Variable rates* 5.01% to 6.61% Not offered Not offered Not offered
Loan fee None None 1.07% 4.26%
Who is eligible? Students only Parents or family members of student Undergraduate students Parents of undergraduate students

*Loan rates assume a $10,000 balance and fully deferred repayment while in school.

Some private student loans enter full repayment as soon as they’re disbursed. Iowa Student Loan, however, offers a few repayment options for borrowers:

  • Immediate full repayment of principal and interest with a 10-year term
  • Interest-only payments while the student is enrolled, with a six-month grace period after enrollment ends before full payments are required and a 10-year term
  • Full deferment of payments while the student is enrolled, including a six-month grace period and a 15-year term

Both students and College Family Loan applicants require a minimum credit score of 670. You might need to meet additional requirements to have your Iowa Student Loan application approved. You also can add a creditworthy cosigner if you can’t qualify on your own.

Iowa Student Loan refinancing

Iowa Student Loan also offers student loan refinancing for both Iowa residents and nonresidents. Its flexible student loan refinancing terms ensure borrowers have the freedom to choose a student loan term that makes sense for them.

A shorter term will mean lower rates and less interest overall. A longer term, however, will come with lower monthly payments, which will be more affordable for borrowers with low income relative to their student loan balance.

Borrowers can refinance between $5,000 and $150,000 in student loans, with the following choices of loan lengths and rates:

  • Five-year student loan with rates from 3.75% to 5.25%
  • 10-year student loan with rates from 4.75% to 6.55%
  • 15-year student loan with rates from 5.25% to 6.75%

Note that the rates above are current as of January 2018. They assume a $25,000 loan balance and a 0.25% discount for Iowa residents.

Iowa Student Loan offers an additional rate discount of 0.25% for enrolling in automatic payments as well as a discount of 0.20% to 0.80% for applicants who work in information technology or engineering fields.

Nonresidents will face slightly higher student loan refinancing rates. Your rates also might differ based on your creditworthiness and refinancing amount.

Here are the eligibility requirements you must meet to qualify for Iowa Student Loan refinancing:

  • A current debt-to-income (DTI) ratio of 40 percent or less, including mortgage or rent
  • A credit score of 720 or higher, with better scores qualifying for lower student loan refinancing rates
  • A credit history free of recent derogatory marks such as delinquencies, charge-offs, repossessions, collections, foreclosures, etc.

If you don’t meet the above requirements, you can add a cosigner to improve your chances of approval for student loan refinancing with Iowa Student Loan.

Iowa Student Loan charges no student loan refinancing origination fees or prepayment penalties.

Iowa Student Loan applications

Iowa Student Loan offers online applications for all three of its student loan products. You’ll need to apply for a Partnership Loan, College Family Loan, or Reset Loan to get an approval and offer for a student loan from Iowa Student Loan.

Each type of loan has an “Apply Now” option listed beneath it on the site’s menu. Click it, and you’ll be taken to a form to apply for student loans online.

Iowa Student Loan doesn’t provide custom rate estimates with a soft credit check like many other private student lenders do. So you might have to complete a full student loan application and incur a hard credit inquiry that could ding your credit to know what rates you would pay.

However, Iowa Student Loan provides fairly comprehensive rates tables that outline the loan offers for different repayment terms and credit scores. It also has a student loan refinance estimator that will give a custom outline of payments based on the state you live in and the amount you want to refinance.

Iowa Student Loan customer service

If you have questions about Iowa Student Loan or the application process, you can contact Iowa Student Loan customer service through the channels below:

As you’re shopping for the best private student loans, compare Iowa Student Loan rates to other offers. The state-based nonprofit could give Iowa students and residents the best deal for taking out or refinancing student loans.

Need a student loan?

Here are our top student loan lenders of 2018!
LenderRates (APR)Eligibility 

1 = Citizens Disclaimer.

2 = CollegeAve Autopay Disclaimer: All rates shown include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. Variable rates may increase after consummation.

* The Sallie Mae partner referenced is not the creditor for these loans and is compensated by Sallie Mae for the referral of Smart Option Student Loan customers.

3 = Sallie Mae Disclaimer: Click here for important information. Terms, conditions and limitations apply.
4.04% -
12.66%
2
Undergraduate, Graduate, and ParentsVisit CollegeAve
4.11% - 12.19%Undergraduate and GraduateVisit Ascent
3.87% - 11.85%*3Undergraduate and GraduateVisit SallieMae
2.93% -
9.67%
Undergraduate, Graduate, and ParentsVisit CommonBond
3.78% -
11.99%
1
Undergraduate, Graduate, and ParentsVisit Citizens
4.51% - 9.69%Undergraduate and GraduateVisit LendKey
3.91% - 11.45%Undergraduate and GraduateVisit Connext
Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality and will make a positive impact in your life. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print understand what you are buying, and consult a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time. Please do your homework and let us know if you have any questions or concerns.