The following features may be available to College Family Loan borrowers.
Interest Rate Reduction
College Family Loan borrowers can earn a 0.25% interest rate reduction1 when they sign up to have principal and interest payments automatically withdrawn.
Armed Forces Interest Reduction
Iowa Student Loan recognizes and appreciates the sacrifices made by members of the military and their families. To assist service members with their student loan, we offer the Iowa Student Loan Armed Forces Interest Reduction Program.
Death or Disability: In the unfortunate event of a borrower's death or qualifying total and permanent disability, Iowa Student Loan will forgive the loan and not require cosigners or the borrower's estate to satisfy the loan obligation. Iowa Student Loan will also forgive the loan and not require the borrower or cosigners to satisfy the loan obligation if the student, for whom the loan funds were borrowed, dies or suffers a qualifying total and permanent disability.
In addition, if a cosigner suffers a qualifying total and permanent disability, Iowa Student Loan will release the cosigner from his or her obligation. In the event of a cosigner's death or qualifying total and permanent disability, the borrower will not be required to find a new cosigner for an existing loan.
You will want to consult a tax professional or the IRS for information about possible tax consequences of loan forgiveness.
1 The 0.25% interest rate reduction will apply to loans once payments begin to be automatically deducted. The reduction will remain in effect as long as automatic payments continue without interruption during the repayment period. The 0.25% interest rate reduction will not lower the monthly payment amount but will instead reduce the interest amount that accrues. The interest rate reduction will be suspended during approved assistance or if automatic payments are rejected due to insufficient funds.