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Iowa residents and students may qualify for rates starting at 5.5%.
This nonprofit lender offers affordable funding to students from Iowa and those attending school in the Hawkeye State. Rates are comparable to federal loans — plus, there’s no application or origination fees. But eligibility requirements are tight, and you might not qualify without a cosigner — or two.
Iowa resident or non-Iowa resident attending an eligible school in Iowa at least half time, satisfactory academic progress, 670+ credit score, DTI of 40% or lower, continually employed for past two years, US citizen or permanent resident, strong credit history
Attending an eligible school in Iowa at least half time,
Anna Serio is a staff writer untangling everything you need to know about personal loans, including student, car and business loans. She spent five years living in Beirut, where she was a news editor for The Daily Star and hung out with a lot of cats. She loves to eat, travel and save money.
First, am I eligible?
Iowa Student Loan Partnership Loans are designed for students to apply with at least one cosigner. Students must meet some requirements on their own, but can have help meeting credit and employment requirements.
Students must meet the following requirements to be eligible:
Iowa resident or student. You need to be either from Iowa or attend a school in the state.
Attend an eligible school. Iowa residents must attend a degree-granting Title IV school, and out-of-state borrowers must be enrolled at an eligible Iowa school.
Enrolled at least half time. You need to be enrolled or planning on enrolling at least half time — as defined by your school.
Make satisfactory academic progress. You must be making satisfactory academic progress, according to your school’s standards. Typically, this means at least a C average or a 2.0 GPA.
Briar Cliff University
Buena Vista University
Des Moines Area Community College
Des Moines University
Divine Word College
Eastern Iowa Community College
Ellsworth Community College
Emmaus Bible College
Faith Baptist Bible College and Theological Seminary
Grand View University
Hawkeye Community College
Indian Hills Community College
Iowa Central Community College
Iowa Lakes Community College
Iowa State University
Iowa Wesleyan College
Iowa Western Community College
Kirkwood Community College
Maharishi University of Management
Marshalltown Community College
Mercy College of Health Sciences
Mount Mercy University
Northern Iowa Area Community College
Northwest Iowa Community College
Southeastern Community College
Southwestern Community College
St. Ambrose University
St. Luke’s College
University of Dubuque
University of Iowa
University of Northern Iowa
Upper Iowa University
Wartburg Theological Seminary
Western Iowa Tech Community College
William Penn University
Student or cosigners must meet the following requirements:
670 credit score or higher. You must have good to excellent credit to qualify.
40% debt-to-income (DTI) ratio or lower. Your monthly bills can’t be more than 40% of your monthly income before taxes. If you don’t have rent or mortgage payments, your DTI must be 25% or lower.
Employed for past two years. You must have continually worked for the past two years, unless you’re retired or receive disability benefits.
Minimal late payments. You can’t have more than two payments more than 30 days late or one payment more than 60 days late on your credit report over the past two years.
No bankruptcies. You won’t qualify if you filed for any type of bankruptcy in the past.
No overdue accounts. You can’t have any charge-offs, repossessions, judgments, collection accounts, garnishments, foreclosures or tax liens.
No defaults on student loans. You won’t qualify if you failed to repay private or federal student loans in the past.
How do Iowa Student Loan Partnership Loans work?
Iowa Student Loan Partnership Loans are supplemental student loans, meaning they’re meant to cover educational costs left after federal aid. While you’re not required to fill out the FAFSA to qualify, it’s encouraged.
Student loans start at $10,001 and can cover up to 100% of your educational costs, after deducing financial aid and federal loans. However, they come with a lifetime limit of $80,000.
How much do Iowa Student Loan Partnership Loans cost?
Iowa Student Loan Partnership Loans don’t come with any fees, so the main cost you need to worry about is interest. Borrowers have a choice between fixed and variable rates.
Fixed rates range from 5.5% to 7.22%, depending on your credit score and repayment plan — immediate repayments come with lower rates than interest-only or deferred repayments. Variable rates run from 5.88% to 8.1% and can get as high as 21%, depending on the state of the economy.
It does. Borrowers can qualify for a 0.25% interest rate discount if you sign up for automatic repayments.
What are my repayment options?
Iowa Student Loan has three different repayment options that each come with different rates and terms:
Fixed rates: 5.5% to 6.3%
Variable rates: 5.88% to 7.68%
Loan term: 10 years
This option requires you to make full repayments as soon as your school receives your funds. Immediate repayments come with the lowest rates of the three. But it has a shorter term, which translates into higher monthly repayments.
Fixed rates: 5.7% to 6.42%
Variable rates: 6.08% to 7.78%
Loan term: 10 years, starting after the grace period
This option allows you to only pay off the interest that adds up while you’re in school and for six months after you drop below half time. Making minimal repayments that you can afford as a student means you’ll have a smaller loan balance when you’re on the hook for full repayments.
Fixed rates: 5.8% to 7.22%
Variable rates: 6.38% to 8.1%
Loan term: 15 years, starting after the grace period
With deferred repayments, you can hold off on repaying your student loans until six months after you drop below half time. It has the highest rates out of the three options and is the most expensive.
That’s because interest starts adding up as soon as you start taking out the loan. When your repayments begin, all that unpaid interest gets added to the loan balance. Essentially, you’re paying interest on interest.
Does Iowa Student Loan offer deferment or forbearance?
It does. Students can apply for deferment with its servicer Aspire under the following circumstances:
Medical residency or internship program
You can get started on your application by contacting Aspire’s customer service team. Typically, you need to provide documents showing that you meet Aspire’s deferment criteria.
Compare more private student loans
Updated September 19th, 2019
Top reasons to consider Iowa Student Loan
From its competitive rates to its comprehensive website, here are a few perks of borrowing from Iowa Student Loan:
Rates compare to federal loans. Depending on your options and credit rating, you might even be able to get a better deal with Iowa Student Loan.
Multiple cosigners. You can apply with more than one cosigner to strengthen your application even more.
Cosigner release. You can apply to take your cosigner off your loan after making 24 on-time repayments in a row.
Students under 18 OK. Minors can qualify for a student loan as long as their cosigner is the age of majority.
Comprehensive website. You can find all of the essential information about Iowa Student Loans on its website without having to contact customer service.
Drawbacks to borrowing from Iowa Student Loan
Consider these potential drawbacks before taking out an Iowa Student Loan Partnership Loan:
Limited term options. You only have a choice between 10- and 15-year terms. And even those options aren’t available with all repayment plans.
Only for Iowans. You can only qualify for this loan if you’re an Iowa resident or attend an eligible school in Iowa.
Strict employment requirement. You or your cosigners must have had steady employment for the past two years in order to qualify.
What do borrowers say about Iowa Student Loan?
As of February 2019, there’s nearly nothing online about Iowa Student Loan. While it gets an A+ rating from the Better Business Bureau (BBB), it only has four customer reviews that scored it an average of 1 out of 5 stars. Most were complaints about the quality of its customer service.
Iowa Student Loan doesn’t appear on Trustpilot, and borrowers are even silent about their experiences on popular forums like Reddit. This is likely due to the limited clientele it serves.
What to expect when signing up
Before applying, make sure you meet Iowa Student Loan’s eligibility requirements. Follow these steps to get started online:
Go to the Iowa Student Loan website.
Scroll down and click Private Student Loans.
In the left-hand menu, click Apply Now under Partnership Loan.
Answer a few questions and click Apply Now.
Read the loan application and credit agreement before clicking Enter Applicant Information.
Read and acknowledge the application disclosures before checking the acknowledgement box and clicking Next.
Follow the directions to complete and submit your application.
Wait to hear back from Iowa Student Loan for further instructions.
Cosigners can apply by following steps one through four and clicking If you’re a cosigner, begin the addendum now.
Who is Iowa Student Loan's servicer?
Iowa Student Loans uses Aspire to service its student loans. Aspire is a subsidiary of Iowa Student Loans, though it also handles repayments from other student loan providers.
As an old-school servicer, it still mostly relies on paper forms, meaning it might take a little longer to make changes to your account. But it’s also one of the few that lets you stop by and solve your problem in person or pay with a debit card.
More about Iowa Student Loan
Iowa Student Loan is a nonprofit corporation that aims to help residents of the Hawkeye State have more access to higher education. Founded in 1979, this Des Moines-based lender has funded nearly 400,000 student loans. While it’s a self-funded organization, the governor of Iowa appoints its board of directors.
Iowa Student Loan Partnership Loans could be an affordable supplement to federal aid if you live or go to school in the state. But its lack of loan terms means you might not have as much flexibility when it comes to repayments as you would with other providers.
If you signed up for immediate or interest-only repayments and are delinquent, you could have future loans from Iowa Student Loan canceled or suspended.
Iowa Student Loan bases its variable rates on the three-month LIBOR index, which reflects the interest rates banks are charging their most creditworthy customers. This means interest rates are subject to change every March, June, September and December.
Iowa Student Loan calculates its variable rates by adding the three-month LIBOR index rate to a fixed rate of 3.3% to 5.52%.
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