Refinancing with Earnest
Refinancing rates from 2.47% APR. Checking your rates won’t affect your credit score.
Iowa ranks No. 19 in the nation when it comes to student loan debt, with four-year grads ending their college careers with an average $29,801 in debt, according to The Institute for College Access & Success (TICAS), a nonprofit educational advocacy organization.
Iowa student loans are practically a fact of life, with 65% of students carrying education debt, reported TICAS. And with changes underway in Iowa, including a potential 4% increase in tuition at public universities, the need for student loans to pay for school could increase.
If you hope to cover the cost of college, the right Iowa student loans can help. Here’s what you need to know.
Federal student loans for Iowa students
The first move to make when looking for college financial aid is to fill out the Free Application for Federal Student Aid (FAFSA). The information on your FAFSA is used by Iowa colleges and universities to determine your financial aid package, which includes the loans you’re eligible for on top of need-based grants and scholarships.
Direct Subsidized and Unsubsidized Loans
Low-income students can qualify for subsidized federal loans. With these loans, the government pays the interest while you’re in school and during other periods.
For those who don’t meet the eligibility criteria for subsidized loans, the federal government also offers unsubsidized loans. Anyone can get unsubsidized federal loans, regardless of income or credit history. Both subsidized and unsubsidized loans have a fixed interest rate of 4.45% for undergraduate students.
However, there’s an annual limit on how much you can borrow in federal student loans. Depending on the school you attend, federal loans might not be enough to cover your costs.
Parent PLUS Loan
Another option is to get help from your parents. If your parents are willing to borrow on your behalf (and go through a credit check), the federal government offers the Parent PLUS Loan. The interest rate is higher for these loans, though: 7.00%.
If receiving financial assistance from a parent or legal guardian isn’t an option, it’s possible for you to get loans in other ways, including private loans and special programs available only in Iowa.
Private Iowa student loans
If you need a little extra help paying for school, private student loans are a potential solution. Realize, however, that private education loans come with more stringent eligibility criteria. For example, you’ll need to submit to a credit check, and you might need a cosigner.
Here are two specific Iowa student loans that can help you privately fund your education:
The Partnership Loan program is available to both Iowa students attending school in the U.S. and to out-of-state students attending an Iowa college or university.
Interest rates are fixed or variable and start as low as 5.15%, as of April 2018. Your rate depends on your or your cosigner’s credit score, among other factors.
Additionally, the Partnership Loan program comes with repayment benefits, such as an interest rate reduction of 0.25% for automatic payments and cosigner release. There’s also a death or disability forgiveness option. It protects cosigners and the borrower’s estate in case of death or permanent disability.
College Family Loan
The College Family Loan is another Iowa-specific private option. It allows family members to help you pay for college, even if they aren’t your parents. There’s also the Parent Partnership Loan, which has the same criteria and terms as the College Family Loan.
For creditworthy family members, these loans can be a viable alternative to federal Parent PLUS Loans. Fixed rates start at 5.50%. Borrowers willing to enter repayment while the student is in school can get the best terms.
Additionally, there’s a death and disability forgiveness benefit for borrowers and cosigners.
Other private education loans for Iowa students
While private Iowa student loans can be a good choice for borrowers, it’s important to shop around for the best terms, especially if you have solid credit.
Some of the best private student loans come with flexible underwriting criteria and other benefits. Additionally, some lenders offer rates starting below 4.00%.
With private education loans, you won’t have access to federal repayment programs, such as income-driven repayment (IDR). So, carefully consider hardship programs when evaluating private student loans. It might make sense to go ahead and get federal loans so you have more repayment options later. Then, you can turn to private student loans to bridge any college funding gap.
Refinancing Iowa student loans
After you finish school and are ready to begin repayment, it can make sense to look into refinancing your student loans.
If you’re having difficulty making your federal student loan payments, consider getting on an IDR plan. Your monthly obligation can be capped at 10% of your income, making your payments more manageable.
For students who meet income and credit requirements (or who can get a cosigner who does), refinancing with a private lender can be the way to go. There are a number of lenders that refinance federal and private student loans in a way that saves you money.
For example, say you have $30,000 in student loan debt on a 10-year repayment plan with an average 5.00% interest rate. You can save $2,585 in interest with a lower rate of 3.50% and the same term, according to our student loan refinancing calculator.
Iowa Reset Refinance Loan
In addition to having its own private student loan programs, Iowa also offers a refinancing program, the Reset Refinance Loan. Rates start as low as 3.75%, based on your credit information, Iowa residency, and loan term.
Understand, though, that if you refinance federal loans, you lose the protections that come with them. Plus, you’ll be ineligible for federal loan forgiveness programs and IDR plans.
If you’re worried about maintaining federal protections, consolidate your federal loans separately and refinance only your private loans to a lower rate.
Know your Iowa student loan options
As you strategize about how to pay for college, consider your student loan options. For some students, securing both federal and private funds is the ideal approach. Be sure to explore your options, especially before asking a parent or other family member to cosign a loan.
Don’t forget about student loan refinancing, either. Getting student loans is the first step. After you graduate, refinancing your Iowa student loans can help you save money over time and make your education more cost-efficient.
Interested in refinancing student loans?Here are the top 6 lenders of 2018!
|Lender||Variable APR||Eligible Degrees|
|Check out the testimonials and our in-depth reviews!
1 Important Disclosures for Earnest.
To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.
Earnest fixed rate loan rates range from 3.89% APR (with Auto Pay) to 7.89% APR (with Auto Pay). Variable rate loan rates range from 2.47% APR (with Auto Pay) to 6.97% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of Month/Day/Year, and are subject to change based on market conditions and borrower eligibility.
Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.
The information provided on this page is updated as of 08/21/18. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at firstname.lastname@example.org, or call 888-601-2801 for more information on ourstudent loan refinance product.
© 2018 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.
2 Important Disclosures for Laurel Road.
Laurel Road Disclosures
APR stands for “Annual Percentage Rate.” Rates listed include a 0.25% EFT discount, for automatic payments made from a checking or savings account. Interest rates as of 11/8/2018. Rates subject to change.
Variable rate options consist of a range from 3.27% per year to 6.09% per year for a 5-year term, 4.64% per year to 6.14% per year for a 7-year term, 4.69% per year to 6.19% per year for a 10-year term, 4.94% per year to 6.44% per year for a 15-year term, or 5.19% per year to 6.69% per year for a 20-year term, with no origination fees. APR is subject to increase after consummation. The variable interest rate will change on the first day of every month (“Change Date”) if the Current Index changes. The variable interest rates are based on a Current Index, which is the 1-month London Interbank Offered Rate (LIBOR) (currency in US dollars), as published on The Wall Street Journal’s website. The variable interest rates and Annual Percentage Rate (APR) will increase or decrease when the 1-month LIBOR index changes. The variable interest rates are calculated by adding a margin ranging from 0.98% to 3.80% for the 5-year term loan, 2.35% to 3.85% for the 7-year term loan, 2.40% to 3.90% for the 10-year term loan, 2.65% to 4.15% for the 15-year term loan, and 2.90% to 4.40% for the 20-year term loan, respectively, to the 1-month LIBOR index published on the 25th day of each month immediately preceding each “Change Date,” as defined above, rounded to two decimal places, with no origination fees. If the 25th day of the month is not a business day or is a US federal holiday, the reference date will be the most recent date preceding the 25th day of the month that is a business day. The monthly payment for a sample $10,000 loan at a range of 3.27% per year to 6.09% per year for a 5-year term would be from $180.89 to $193.75. The monthly payment for a sample $10,000 loan at a range of 4.64% per year to 6.14% per year for a 7-year term would be from $139.65 to $146.76. The monthly payment for a sample $10,000 loan at a range of 4.69% per year to 6.19% per year for a 10-year term would be from $104.56 to $111.98. The monthly payment for a sample $10,000 loan at a range of 4.94% per year to 6.44% per year for a 15-year term would be from $78.77 to $86.78. The monthly payment for a sample $10,000 loan at a range of 5.19% per year to 6.69% per year for a 20-year term would be from $67.05 to $75.68.
However, if the borrower chooses to make monthly payments automatically by electronic funds transfer (EFT) from a bank account, the variable rate will decrease by 0.25%, and will increase back up to the regular variable interest rate described in the preceding paragraph if the borrower stops making (or we stop accepting) monthly payments automatically by EFT from the designated borrower’s bank account.
3 Important Disclosures for SoFi.
4 Important Disclosures for LendKey.
Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.
5 Important Disclosures for CommonBond.
Offered terms are subject to change. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900). If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown.
All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 2.28% effective October 10, 2018.
6 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
|2.24% – 7.24%3||Undergrad & Graduate|
|2.47% – 6.97%1||Undergrad & Graduate|
|2.51% – 8.09%4||Undergrad & Graduate|
|3.02% – 6.44%2||Undergrad & Graduate|
|2.69% – 7.21%5||Undergrad & Graduate|
|2.79% – 8.39%6||Undergrad & Graduate|