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Learn More About the Partnership Loan

Before students and families consider a private loan, we strongly encourage them to understand and take advantage of all sources of student financial aid, including federal loans for students.

Once students and families have taken into account all student financial aid as well as their college savings, if they do not have enough money to cover all college costs, a supplemental private student loan may be needed.

The Partnership Loan Program^® is one type of private student loan. The borrower is the student (undergraduate or graduate) and one or more cosigners are often needed, but student applicants who meet the underwriting and credit criteria on their own do not need to provide cosigners. The Partnership Loan is for:

Iowa students attending colleges and universities across the country.
Students from any state attending Iowa schools.

Information about the loan is provided upfront and in clear terms on the following tabs so students and their families have a full picture of the loan before they begin the application process.

Options

View the different tabs below for loan details. While you're in school, if you want to make:

Full payments, select the Immediate Payment tab.
Interest payments, select the Interest-Only Payment tab.
No payments, select the Deferred Payment tab.

Compare financial information on all Partnership Loan options. (PDF)

Parents deciding whether to cosign their student's Partnership Loan or take out a loan in their own name, like a federal loan for parents, can use this Partnership and Direct PLUS loan comparison chart to determine which option is better for their situation.

The Immediate Payment options feature the lowest Partnership Loan interest rates, and making regular on-time payments during the in-school period prevents increases to the loan balance. These options:

Require that monthly payments of principal and interest begin immediately — while you are enrolled in school — after the loan is fully disbursed.¹
Have a 10-year (120-month) principal and interest repayment period.²

Fixed-Rate

Examples for a $10,000 Loan

If your FICO³ score is ...	Interest Rate	Origination Fee	Annual Percentage Rate	Finance Charge	Principal & Interest Monthly Payment
800 or more⁴	5.50%	0%	5.50%	$3,021	$109
760–799⁵	6.00%	0%	6.00%	$3,321	$111
720–759⁶	6.20%	0%	6.20%	$3,441	$112
670–719⁷	6.30%	0%	6.30%	$3,502	$113

Variable-Rate (Quarterly Rates Oct. 1–Dec. 31, 2018)

Examples for a $10,000 Loan

If your FICO³ score is ...	Current Interest Rate^8,9	Origination Fee	Annual Percentage Rate	Finance Charge	Principal & Interest Monthly Payment
800 or more¹⁰	5.63%	0%	5.63%	$3,099	$109
760–799¹¹	6.21%	0%	6.21%	$3,447	$112
720–759¹²	6.47%	0%	6.47%	$3,605	$113
670–719¹³	7.43%	0%	7.43%	$4,198	$118

¹ Borrowers with delinquencies during the principal and interest repayment period may have future disbursements and/or loans suspended or canceled.

² If a pre-disbursement loan cancellation results in a Partnership Loan of $1,000 or less, the maximum principal and interest repayment term is 37 months.

³ The FICO score used is the TransUnion FICO Score 4, which is based on data from TransUnion and may be different from other credit scores. FICO is a registered trademark of the Fair Isaac Corporation.

⁴ Annual percentage rate (APR), finance charge and monthly payments are based on borrowing $10,000, a 0% origination fee and a fixed interest rate of 5.50% during the 120-month principal and interest repayment period.

⁵ Annual percentage rate (APR), finance charge and monthly payments are based on borrowing $10,000, a 0% origination fee and a fixed interest rate of 6.00% during the 120-month principal and interest repayment period.

⁶ Annual percentage rate (APR), finance charge and monthly payments are based on borrowing $10,000, a 0% origination fee and a fixed interest rate of 6.20% during the 120-month principal and interest repayment period.

⁷ Annual percentage rate (APR), finance charge and monthly payments are based on borrowing $10,000, a 0% origination fee and a fixed interest rate of 6.30% during the 120-month principal and interest repayment period.

⁸ The rate is subject to increase after consummation. These interest rates are calculated using the three-month Libor index, which is defined as the daily average of the three-month London Interbank Offered Rate (Libor) (currency in U.S. dollars) that was published on the Wall Street Journal's website (or any generally recognized successor method or means of publication) on each business day during the 91-day period ending on the 20th day of March, June, September and December. The three-month Libor index for the quarter Oct. 1–Dec. 31, 2018, is 2.33%.

⁹ The rate will not exceed 21.00%.

¹⁰ The current interest rate is calculated quarterly by adding the three-month Libor index to 3.30%. Annual percentage rate (APR), finance charge and monthly payments are based on borrowing $10,000, a 0% origination fee and maintaining a constant interest rate on a variable rate loan of 5.63% during the 120-month principal and interest repayment period. APR examples are based on quarterly interest rates for Oct. 1–Dec. 31, 2018.

¹¹ The current interest rate is calculated quarterly by adding the three-month Libor index to 3.88%. Annual percentage rate (APR), finance charge and monthly payments are based on borrowing $10,000, a 0% origination fee and maintaining a constant interest rate on a variable rate loan of 6.21% during the 120-month principal and interest repayment period. APR examples are based on quarterly interest rates for Oct. 1–Dec. 31, 2018.

¹² The current interest rate is calculated quarterly by adding the three-month Libor index to 4.14%. Annual percentage rate (APR), finance charge and monthly payments are based on borrowing $10,000, a 0% origination fee and maintaining a constant interest rate on a variable rate loan of 6.47% during the 120-month principal and interest repayment period. APR examples are based on quarterly interest rates for Oct. 1–Dec. 31, 2018.

¹³ The current interest rate is calculated quarterly by adding the three-month Libor index to 5.10%. Annual percentage rate (APR), finance charge and monthly payments are based on borrowing $10,000, a 0% origination fee and maintaining a constant interest rate on a variable rate loan of 7.43% during the 120-month principal and interest repayment period. APR examples are based on quarterly interest rates for Oct. 1–Dec. 31, 2018.

The Interest-Only Payment options feature lower interest rates than the Deferred Payment loans, and making regular on-time interest-only payments during the in-school period prevents increases to the loan balance. These options:

Require that monthly payments of interest begin immediately after the loan is first disbursed.¹
Feature a six-month separation period — once you graduate, leave school or drop below half-time enrollment and before the principal and interest repayment period begins — during which interest-only payments are required.¹
Have a 10-year (120-month) principal and interest repayment period.²

Fixed-Rate

Examples for a $10,000 Loan

If your FICO³ score is ...	Interest Rate	Origination Fee	Annual Percentage Rate	Finance Charge	Interest- Only Monthly Payment	Principal & Interest Monthly Payment
800 or more⁴	5.70%	0%	5.70%	$5,565	$48	$110
760–799⁵	6.10%	0%	6.10%	$5,975	$51	$112
720–759⁶	6.30%	0%	6.30%	$6,181	$53	$113
670–719⁷	6.42%	0%	6.42%	$6,305	$54	$113

Variable-Rate (Quarterly Rates Oct. 1–Dec. 31, 2018)

Examples for a $10,000 Loan

If your FICO³ score is ...	Current Interest Rate^8,9	Origination Fee	Annual Percentage Rate	Finance Charge	Interest- Only Monthly Payment	Principal & Interest Monthly Payment
800 or more¹⁰	5.83%	0%	5.83%	$5,698	$49	$110
760–799¹¹	6.41%	0%	6.41%	$6,295	$53	$113
720–759¹²	6.55%	0%	6.55%	$6,440	$55	$114
670–719¹³	7.53%	0%	7.53%	$7,463	$63	$119

¹ Borrowers who fail to stay current with any required interest-only payments may be unable to apply for and subsequently receive future loans.

² If a pre-disbursement loan cancellation results in a Partnership Loan of $1,000 or less, the maximum principal and interest repayment term is 37 months.

⁴ Annual percentage rate (APR), finance charge and monthly payments are based on borrowing $10,000, a 0% origination fee, deferring principal for 51 months and a fixed interest rate of 5.70% during the 51-month interest-only and the 120-month principal and interest repayment periods.

⁵ Annual percentage rate (APR), finance charge and monthly payments are based on borrowing $10,000, a 0% origination fee, deferring principal for 51 months and a fixed interest rate of 6.10% during the 51-month interest-only and the 120-month principal and interest repayment periods.

⁶ Annual percentage rate (APR), finance charge and monthly payments are based on borrowing $10,000, a 0% origination fee, deferring principal for 51 months and a fixed interest rate of 6.30% during the 51-month interest-only and the 120-month principal and interest repayment periods.

⁷ Annual percentage rate (APR), finance charge and monthly payments are based on borrowing $10,000, a 0% origination fee, deferring principal for 51 months and a fixed interest rate of 6.42% during the 51-month interest-only and the 120-month principal and interest repayment periods.

⁹ The rate will not exceed 21.00%.

¹⁰ The current interest rate is calculated quarterly by adding the three-month Libor index to 3.50%. Annual percentage rate (APR), finance charge and monthly payments are based on borrowing $10,000, a 0% origination fee, deferring principal for 51 months and maintaining a constant interest rate on a variable rate loan of 5.83% during the 51-month interest-only and the 120-month principal and interest repayment periods. APR examples are based on quarterly interest rates for Oct. 1–Dec. 31, 2018.

¹¹ The current interest rate is calculated quarterly by adding the three-month Libor index to 4.08%. Annual percentage rate (APR), finance charge and monthly payments are based on borrowing $10,000, a 0% origination fee, deferring principal for 51 months and maintaining a constant interest rate on a variable rate loan of 6.41% during the 51-month interest-only and the 120-month principal and interest repayment periods. APR examples are based on quarterly interest rates for Oct. 1–Dec. 31, 2018.

¹² The current interest rate is calculated quarterly by adding the three-month Libor index to 4.22%. Annual percentage rate (APR), finance charge and monthly payments are based on borrowing $10,000, a 0% origination fee, deferring principal for 51 months and maintaining a constant interest rate on a variable rate loan of 6.55% during the 51-month interest-only and the 120-month principal and interest repayment periods. APR examples are based on quarterly interest rates for Oct. 1–Dec. 31, 2018.

¹³ The current interest rate is calculated quarterly by adding the three-month Libor index to 5.20%. Annual percentage rate (APR), finance charge and monthly payments are based on borrowing $10,000, a 0% origination fee, deferring principal for 51 months and maintaining a constant interest rate on a variable rate loan of 7.53% during the 51-month interest-only and the 120-month principal and interest repayment periods. APR examples are based on quarterly interest rates for Oct. 1–Dec. 31, 2018.

The Deferred Payment options postpone repayment until you graduate, leave school or drop below half-time enrollment. These options:

Feature a six-month separation period — once you graduate, leave school or drop below half-time enrollment and before the principal and interest repayment period begins — during which no payments are required.
Have a 15-year (180-month) principal and interest repayment period.¹

Fixed-Rate

Examples for a $10,000 Loan

If your FICO² score is ...	Interest Rate	Origination Fee	Annual Percentage Rate	Finance Charge	Principal & Interest Monthly Payment
800 or more³	5.80%	0%	5.56%	$8,695	$104
760–799⁴	6.30%	0%	6.02%	$9,630	$109
720–759⁵	6.52%	0%	6.22%	$10,053	$111
670–719⁶	7.22%	0%	6.86%	$11,437	$119

Variable-Rate (Quarterly Rates Oct. 1–Dec. 31, 2018)

Examples for a $10,000 Loan

If your FICO² score is ...	Current Interest Rate^7,8	Origination Fee	Annual Percentage Rate	Finance Charge	Principal & Interest Monthly Payment
800 or more⁹	6.13%	0%	5.87%	$9,308	$107
760–799¹⁰	6.71%	0%	6.39%	$10,423	$113
720–759¹¹	6.85%	0%	6.52%	$10,697	$115
670–719¹²	7.85%	0%	7.42%	$12,737	$126

¹ If a pre-disbursement loan cancellation results in a Partnership Loan of $1,000 or less, the maximum principal and interest repayment term is 37 months.

² The FICO score used is the TransUnion FICO Score 4, which is based on data from TransUnion and may be different from other credit scores. FICO is a registered trademark of the Fair Isaac Corporation.

³ Annual percentage rate (APR), finance charge and monthly payments are based on borrowing $10,000, a 0% origination fee, deferring principal and interest for 51 months and a fixed interest rate of 5.80% during the 51-month in-school and separation period and the 180-month principal and interest repayment period.

⁴ Annual percentage rate (APR), finance charge and monthly payments are based on borrowing $10,000, a 0% origination fee, deferring principal and interest for 51 months and a fixed interest rate of 6.30% during the 51-month in-school and separation period and the 180-month principal and interest repayment period.

⁵ Annual percentage rate (APR), finance charge and monthly payments are based on borrowing $10,000, a 0% origination fee, deferring principal and interest for 51 months and a fixed interest rate of 6.52% during the 51-month in-school and separation period and the 180-month principal and interest repayment period.

⁶ Annual percentage rate (APR), finance charge and monthly payments are based on borrowing $10,000, a 0% origination fee, deferring principal and interest for 51 months and a fixed interest rate of 7.22% during the 51-month in-school and separation period and the 180-month principal and interest repayment period.

⁷ The rate is subject to increase after consummation. These interest rates are calculated using the three-month Libor index, which is defined as the daily average of the three-month London Interbank Offered Rate (Libor) (currency in U.S. dollars) that was published on the Wall Street Journal's website (or any generally recognized successor method or means of publication) on each business day during the 91-day period ending on the 20th day of March, June, September and December. The three-month Libor index for the quarter Oct. 1–Dec. 31, 2018, is 2.33%.

⁸ The rate will not exceed 21.00%.

⁹ The current interest rate is calculated quarterly by adding the three-month Libor index to 3.80%. Annual percentage rate (APR), finance charge and monthly payments are based on borrowing $10,000, a 0% origination fee, deferring principal and interest for 51 months and maintaining a constant interest rate on a variable rate loan of 6.13% during the 51-month in-school and separation period and the 180-month principal and interest repayment period. APR examples are based on quarterly interest rates for Oct. 1–Dec. 31, 2018.

¹⁰ The current interest rate is calculated quarterly by adding the three-month Libor index to 4.38%. Annual percentage rate (APR), finance charge and monthly payments are based on borrowing $10,000, a 0% origination fee, deferring principal and interest for 51 months and maintaining a constant interest rate on a variable rate loan of 6.71% during the 51-month in-school and separation period and the 180-month principal and interest repayment period. APR examples are based on quarterly interest rates for Oct. 1–Dec. 31, 2018.

¹¹ The current interest rate is calculated quarterly by adding the three-month Libor index to 4.52%. Annual percentage rate (APR), finance charge and monthly payments are based on borrowing $10,000, a 0% origination fee, deferring principal and interest for 51 months and maintaining a constant interest rate on a variable rate loan of 6.85% during the 51-month in-school and separation period and the 180-month principal and interest repayment period. APR examples are based on quarterly interest rates for Oct. 1–Dec. 31, 2018.

¹² The current interest rate is calculated quarterly by adding the three-month Libor index to 5.52%. Annual percentage rate (APR), finance charge and monthly payments are based on borrowing $10,000, a 0% origination fee, deferring principal and interest for 51 months and maintaining a constant interest rate on a variable rate loan of 7.85% during the 51-month in-school and separation period and the 180-month principal and interest repayment period. APR examples are based on quarterly interest rates for Oct. 1–Dec. 31, 2018.

Repayment Benefits

The following features may be available to Partnership Loan borrowers.

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.

Cosigner Release

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 cosigners 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 contact us for details.

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 first disbursed on or after June 1, 2013, and 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.

Eligibility and Underwriting Criteria

The Partnership Loan is for borrowers and one or more creditworthy cosigners. Note: Applicants who are creditworthy (meet the underwriting and credit criteria) are not required to provide cosigners.

Eligibility Criteria

To be eligible for this supplemental private student loan program, you must:

Be of majority age pursuant to applicable law at the time of application or be an emancipated minor. A student not of majority age may apply with an eligible cosigner.
Not have defaulted on any private or government student loan.
Be an Iowa resident attending any nonprofit, Title IV eligible, degree-granting, accredited college or university or nonprofit school of nursing approved by the Iowa Board of Nursing; OR be a non-Iowa resident attending any nonprofit, Title IV eligible, degree-granting, accredited Iowa college or university or nonprofit school of nursing approved by the Iowa Board of Nursing. View list of eligible schools in Iowa.
Be accepted, enrolled or attending on at least a half-time basis, as defined by the school, and be making satisfactory academic progress in an eligible education program.
Be a citizen or permanent resident of the United States. Cosigners must be citizens or permanent residents of the United States and must reside in the United States. Military addresses are considered U.S. addresses if designated as an APO or FPO.

Underwriting Criteria

To qualify for a Partnership Loan, you or your cosigners must have:

Monthly payments for approved credit (mortgages, rent, car loans, credit cards and other forms of credit, including the loan for which the student has submitted an application) that do not exceed 40% of gross monthly income (if a mortgage or rent is not included, debt-to-income ratio cannot exceed 25%). All student loan debt will be treated as though it is in repayment.
Continuous employment over the last two years. (This requirement may be waived for retirees, disabled persons or those receiving a verified income.)
A FICO score of at least 670. (The FICO score used is the TransUnion FICO Score 4, which is based on data from TransUnion and may be different from other credit scores. FICO is a registered trademark of the Fair Isaac Corporation.)
No more than two accounts reporting 30-day delinquencies and no delinquencies of 60 days or more during the previous two years.
No charge-offs, repossessions, collection accounts, judgments, foreclosures, garnishments by credit providers or tax liens.
No previous bankruptcies.
Not defaulted on any private or government student loan.

Note: For joint cosigned loans, at least one cosigner must meet all credit underwriting criteria with the exception of the debt-to-income ratio.

Please note that the list of criteria above may not be exhaustive. Iowa Student Loan may require you or your cosigners to meet additional criteria in order to qualify for a loan. Iowa Student Loan reserves the right to change the list of criteria in any way from time to time.

If you cannot meet these qualifications, please discuss your options with your financial aid office.

Loan Limits

The Partnership Loan must be:

No more than the cost of attendance minus other aid annually.
No more than $80,000 cumulative.
At least $1,001.

Interest

Interest capitalizes at:

The end of any qualifying deferment period for all loan options.
The start of repayment status for loans that do not require principal and interest or interest-only payments while the borrower is enrolled and during the separation period.
The final disbursement of loans that require monthly principal and interest payments while the borrower is enrolled in school and that have more than one disbursement.

Compare Rates to National Lenders

Many lenders provide a range of rates for their private loans but do not offer details on credit requirements for specific rates. That means you won't know the rate you may receive until after you have applied for and been approved for the loan. At Iowa Student Loan, we believe in providing you with as much information as possible upfront, before you even start an application.

The following tables compare the annual percentage rates (APRs) offered by Iowa Student Loan for the Deferred Payment Partnership Loan to APR ranges offered to students by three national lenders. Please Note:

Not all three national lenders offer options where principal and interest payments or interest-only payments are required during the in-school period, so comparisons for those options are not available.
According to FinAid.org¹, about 80% of borrowers do not qualify for a lender's lowest interest rate, so APRs are presented in ascending order of the highest rates.

Fixed-Rate APR Comparison

Lender	Fixed Interest Annual Percentage Rate (APR)²
(listed in ascending order of highest rate)
Iowa Student Loan³	5.56%	or	6.02%	or	6.22%	or	6.86%
Wells Fargo⁴	5.94%			up to			11.26%
Discover	6.28%			up to			11.83%
Sallie Mae	5.74%			up to			11.85%

Variable-Rate APR Comparison

Lender	Variable Interest Annual Percentage Rate (APR)²
(listed in ascending order of highest rate)
Iowa Student Loan³	5.87%	or	6.39%	or	6.52%	or	7.42%
Wells Fargo⁴	4.80%			up to			10.72%
Discover	4.44%			up to			11.00%
Sallie Mae	4.25%			up to			11.10%

¹ http://www.finaid.org/loans/privatestudentloans.phtml

² Annual Percentage Rates (APRs) were retrieved from the lenders' websites on Oct. 4, 2018, for loans where repayment is deferred while the student is enrolled at least half time.

³ Iowa Student Loan provides specific rates on its website; other lenders provide ranges.

⁴ Wells Fargo's lowest rates include a 0.25% customer discount for having a prior student loan with Wells Fargo or a qualified Wells Fargo consumer checking account.

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