Local Student Loan Provider Lowers Rates on Private Student Loans
Iowa Student Loan Reduces Rates on Its Partnership Loan
Aug. 3, 2016
Iowa Student Loan® recently reduced some fixed interest rates for its private student loan program, the Partnership Advance Education Loan® (Partnership Loan). The reduction will keep Partnership Loan fixed rates in most cases lower than the rate for federal PLUS Loans and provide many families an attractive option to pay for college.
"Our goal is to provide the best rates we can offer to students who need to supplement their financial aid with a private student loan," said Steve McCullough, president and CEO of Iowa Student Loan. "Some families may find that our Partnership Loan rates are lower for them than the PLUS annual percentage rate. In addition, with the Partnership Loan the student is the actual borrower which provides an opportunity for them to start building their credit profile."
In keeping with its mission to help Iowa students and families obtain the resources necessary to succeed in postsecondary education, Iowa Student Loan informs Partnership Loan applicants if other options may be better for them. Applicants who qualify for a Partnership Loan with a higher annual percentage rate than what the corporation calculates for a PLUS Loan are notified that their families may want to consider the PLUS Loan or other loan options with lower rates. The PLUS Loan is a supplemental federal loan for parents of undergraduate students and for graduate or professional students.
The Partnership Loan was designed to supplement — not replace — other sources to fill funding gaps for students and parents. Iowa Student Loan encourages students and parents to work with financial aid professionals at their respective colleges and universities to explore and exhaust all sources of student financial aid before seeking a Partnership Loan.
The Partnership Loan features different options so that students and their families can choose between immediate repayment, interest-only payments or deferred payment while the student is in school, whichever may be the right choice for their financial situation. Making payments — whether they are principal and interest or interest only — while the student is in school prevents interest from capitalizing and increasing the loan amount while the student is enrolled. Full details, including credit score requirements for different rates and eligibility criteria are provided online at www.IowaStudentLoan.org/Partnership.
In addition to offering the Partnership Loan, Iowa Student Loan offers students free resources, including the online Smart Borrowing tools: College Funding Forecaster, Student Loan Game PlanSM and Return on College Investment.
# # #
Megan Garrett, Corporate Communications & Media Relations, (515) 273-7145, firstname.lastname@example.org
Download the PDF version of this news release.