Partnership Advance Education Loan Borrower Guidance Statement

Iowa Student Loan's Partnership Advance Education Loan is designed to supplement — not replace — other sources to fill funding gaps for students and parents. Students and parents should 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 Advance Education Loan.

  1. Federal loans for students are always better than private loans. Iowa Student Loan's Partnership Advance Education Loan is a private loan. Federal loans for students, such as Direct Subsidized and Unsubsidized loans, are almost always less expensive than private loans. Also, private loans cannot be consolidated with federal loans under the federal student loan consolidation program. Students and their families should exhaust all available federal student financial aid before seeking a private loan.
  2. Parents can reduce student borrowing costs. Before taking out a private student loan, families with dependent undergraduate students should consider Iowa Student Loan’s College Family Loan or the federal Direct PLUS (parent) Loan. These loans enable parents to borrow on their student's behalf without obligating the student to repay the loan. If a student does take out a private loan, then the parents should consider cosigning the loan with the student. Private loans with cosigners typically are more readily available and have lower costs than other private loans. However, families should still exhaust all federal student financial aid before considering either a PLUS Loan or private loan.
  3. Iowa Student Loan publishes all criteria that borrowers must meet to obtain the different interest rates and fees for its Partnership Advance Education Loan. Borrowers should try to obtain as much information as possible before applying for a private student loan. They should be cautious of lenders who do not follow this practice of providing upfront and transparent interest rates and terms.

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