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Iowa Student Loan Review

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Iowa student loan

Once you’ve exhausted all of your federal financial aid options, getting additional money for school may mean turning to private lenders.

While private student loans don’t offer all of the protections that federal student loans provide, they can be a needed source of school funding. 

Not all private lenders are created equal. And it's important to research each lender's pros and cons to determine which one might be the best fit. In this article, we'll look at Iowa Student Loan and why you might want to consider them as a supplemental lender to your federal student loans.

See how they compare to our list of the best private student loans.

Iowa Student Loan logo

Quick Summary

  • Nonprofit private student loan lender
  • Will lend to eligible students nationwide
  • No origination fees or prepayment penalties
  • Can apply with up to two cosigners per loan

Iowa Student Loan Details

Product Name

Iowa Student Loan (ISL)

Loan Type

Private student loans

Student loan refinancing

Loan Terms

Private student loans: 10 or 15 years

Student loan refinancing: 5,7,10,15, or 20 years

Max Loan Amount

Private student loans: Up to the full cost of attendance

Student loan refinancing: $200,000

Rate Type

Fixed and variable

APR

3.50% to 8.03%

Promotions

None

Table of Contents
Who Is Iowa Student Loan?
What Do They Offer?
Are There Any Fees?
How Do I Apply?
Is It Worth It?
Iowa Student Loan Features

Who Is Iowa Student Loan?

Iowa Student Loan Liquidity Corporation is a non-profit organization or Section 501(c)(3). The company was established in 1979 and is based in West Des Moines, Iowa. The Chair of the organization is Christine Hensley.

While its name would indicate otherwise, you don't have to be an Iowa resident or be attending an Iowa school to take out an ISL undergraduate, family, or refinance loan. However, it does currently restrict its graduate student loan program to students who are attending an eligible Iowa college or university.

What Do They Offer?

Iowa Student Loan (ISL) provides private student loans and refinancing to current students for postsecondary education. Loans are offered directly to students and families via a co-signer. 

Because private student loans do not offer the same advantages as federal student loans, federal student loans should be considered first. ISL even mentions this on their website. They say that any ISL loans should only be used as a supplement after federal aid has been exhausted.

Loan Types

Iowa Student Loan offers loans for undergraduates, graduates, and medical school students. There are three loan types to choose from:

  • The Partnership Loan — for undergraduate and graduate loans. A cosigner isn’t required if the student meets the loan credit requirements. Rates on these loans are 3.57% - 5.55% APR for variable rates and 4.60% - 6.85% APR for fixed rates. Terms are 10-15 years.
  • College Family Loan — for undergraduate and graduate loans. Cosigners can be parents, family members and others, although cosigners are not required. Not available as a variable interest rate. Fixed rate ranges from 4.60% - 6.85% APR. Terms are 10-15 years.
  • No-Cosigner Loan for Graduates — for graduate-level students. Does not require a cosigner and comes at a fixed rate only from 5.30% APR–5.50% APR. Terms are 10-15 years.

Note that graduate students generally have unlimited federal assistance available in the form of Grad PLUS loans. Unlike Direct Subsidized and Unsubsidized loans (which have set yearly and aggregate limits), Grad PLUS loans allows students to borrow up to their school's full cost of attendance.

Loan Credit Requirements

From ISL’s website, the student or cosigner must meet the following:

  • Monthly payments for approved credit cannot exceed 40% of gross monthly income. If a mortgage or rent is not included, the maximum debt-to-income ratio (DTI) is 25%.
  • Continuous employment for at least the last two years. (exceptions may be made for retirees, disabled persons or those with a verifiable income.)
  • A FICO score of at least 670.
  • No more than two accounts reporting 30-day delinquencies and no delinquencies of 60 days or more from the last two years.
  • No charge-offs, repossessions, collection accounts, judgments, foreclosures, or garnishments.
  • No bankruptcy
  • No previous default on a student loan

Unfortunately, Iowa Student Loan doesn't have a prequalification tool for its Partnership Loan and No-Cosigner Graduate Loan. So if you want to get a rate quote for either of the loans, you'll need to submit a full loan application.

Cosigner Requirements

A cosigner is used when students can't meet the loan qualification requirements themselves. Iowa Student Loan has some stiff cosigner requirements, including a 670 minimum credit score. The credit score used by ISL is the TransUnion FICO Score 4.

One advantage for cosigners is that they are not required to meet the debt-to-income ratio (DTI) that students must meet. And the Partnership Loan does have a cosigner release provision. After 24 months of on-time payments, the borrower can apply to have the cosigner released from the loan.

Related: How To Get A Private Student Loan With No Cosigner

Repayment Options

Partnership Loans and College Family Loans comes with three repayment options:

  • Immediate repayment — payments begin immediately after the loan is disbursed.
  • Interest-only repayment — students who are enrolled in school make smaller interest-only payments.
  • Deferred repayment — no payment is due until after graduation.
Header
Iowa Student Loan logo
Ascent Student Loans
Commonbond Logo

Rating

Undergraduate Student Loans

Graduate Student Loans

Refinancing

Prequalification

Yes, for some loans

Yes, for all loans

Yes, for all loans

Cosigner Release

Yes, after 24 on-time monthly payments

Yes, after 24 on-time monthly payments

Yes, after 24 on-time monthly payments

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Student Loan Refinancing

Iowa Student Loan does offer student loan refinancing. Keep in mind that if you're refinancing a federal student loan, it will become a private loan and you’ll lose all federal loan benefits.

Refinancing is available for the following loans:

ISL's refinance loans come with more repayments terms than their in-school loans. Borrowers can pay back their loans over 5,7,10,12, 15, or 20 years. These loans come with fixed interest rates ranging from 3.50% to 8.03% APR.

Customer Service

You can reach customer service by secure email or by phone at (855) 811-9849. Their hours of availability are 8 a.m.–4:30 p.m. (CT) Monday–Friday. For loan application assistance, call (800) 542-6005.

Are There Any Fees?

No — ISL doesn’t charge any application or origination fees. You simply pay the loan interest. There is an additional 0.25% rate reduction for automatic payments.

How Do I Apply?

You can visit https://www.iowastudentloan.org to apply for a loan with ISL.

Is It Worth It?

Yes — given that they charge no loan fees, their interest rates are competitive, and hardship options are available, Iowa Student Loan may be worth checking if you need private student loans. It could be an especially strong option if you or your cosigner have a high credit score.

However, ISL may not be a good choice if your credit score is less than stellar since its 670 minimum credit score is on the high side. Also, it should be noted that while ISL's refinance loan offers good payment flexibility, their in-school student loans only come in 10 or 15 year terms. You'll need to look elsewhere if you were hoping for more repayment term options.

In summary, Iowa Student Loan could be worth considering as a supplement to federal financial aid. But, remember, there are variety of private student loan lenders available today. Before choosing ISL, be sure to shop around to give yourself the best chance of finding the lowest rate.

Iowa Student Loan Features

Loan Type

  • Private student loans
  • Student loan refinancing

Loan Terms

  • Private student loans: 10 or 15 years
  • Student loan refinancing: 5,7,10,15, or 20                years

Max Loan Amount

  • Private student loans: Up to the full cost of            attendance
  • Student loan refinancing: $200,000

Auto-Pay Discount

0.25%

Rate Type

Fixed and Variable

APR

Partnership Loan


  • Fixed: 4.60% - 6.85%
  • Variable: 3.57% - 5.55% APR

College Family Loan


  • Fixed: 4.60% - 6.85% APR

No-Cosigner Loan for Graduates


  • Fixed: 5.30% APR–5.50% APR.

Reset Refinance Loan


  • Fixed: 3.50% to 8.03% APR

Prequalification Tool

Partnership Loan: No

College Family Loan: Yes

No-Cosigner Graduate Loan: Yes

Reset Refinance Loan: Yes

Origination Fees

None

Prepayment Penalty?

None

In-School Payments

  • Immediate payments
  • Interest-only payments
  • Deferred payments

Cosigners Allowed?

Yes

Cosigners Release Option

Yes, after 24 on-time monthly payments

Grace Period

6 months

Eligible Schools

For most loans, any school in the United States.


However, for the no-cosigner graduate loan, students must attend an Iowa college or university. 

Loan Servicer

Aspire Servicing Center

Customer Service Phone Number

1-800-243-7552

Customer Service Hours

8 AM–7 PM (CT), Mon–Thurs

8 AM–5 PM (CT), Friday

General Mailing Address

6775 Vista Drive
West Des Moines, IA 50266-9305

Address For Sending Payments

Aspire Servicing Center
P.O. Box 659701
West Des Moines, IA 50265-0970

Promotions

None

Iowa Student Loan Review
  • Loan Options
  • Customer Service
  • Rewards and Perks
  • Rates and Fees
  • Ease of Use
Overall
3.5

Summary

Iowa Student Loan (ISL) is a nonprofit that offers private student loans and student loan refinancing. Learn all the details in our review!

Pros

  • Solid in-school payment flexibility
  • Graduate loans don’t require a cosigner
  • Can apply for cosigner release after 24 months
  • No application or origination fees

Cons

  • Limited repayment terms for in-school loans
  • Minimum credit score is on the high side
  • Graduate loans only available for students at Iowa schools
Editorial Disclaimer: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, or other advertiser and have not been reviewed, approved or otherwise endorsed by any of these entities.
Comment Policy: We invite readers to respond with questions or comments. Comments may be held for moderation and are subject to approval. Comments are solely the opinions of their authors'. The responses in the comments below are not provided or commissioned by any advertiser. Responses have not been reviewed, approved or otherwise endorsed by any company. It is not anyone's responsibility to ensure all posts and/or questions are answered.
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