The following features may be available to Partnership Loan borrowers during the principal and interest repayment period.
Interest Rate Reduction
Partnership Loan borrowers can earn a 0.25% interest rate reduction1 when they sign up to have principal and interest payments automatically withdrawn.
Partnership Loan borrowers can release their cosigners from payment obligations:
- After the first 24 consecutive monthly principal and interest payments are received on time.
- If the borrower meets the underwriting and credit criteria at the time the cosigner release is requested.
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.
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.
Please 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.