Skip to main content

Supplemental Private Loans

We use our nonprofit status and access to tax-exempt bonds to offer supplemental private loans with competitive rates and a variety of repayment options to help students and their families as well as those who are out of college and looking to improve student loan repayment.

Private Student Loans

As a nonprofit, Iowa Student Loan Liquidity Corporation has the ability to issue federally tax-exempt Private Activity Bonds, in the form of Qualified Student Loan Bonds (QSLBs). We issue these tax-exempt bonds to fund competitively priced loans, which are a key way we help Iowa students and families obtain the resources necessary to succeed in postsecondary education. We issue taxable bonds to fund loans with no Iowa connection.

As a nonprofit, we also have the ability to invest our resources into borrowers. In the recent past, that has meant helping shortage area workers in the state — specifically teachers and nurses — with grants and loan forgiveness programs. We also honor the sacrifices our borrowers serving in the military make by reducing the interest rates on their private loans while they serve.

Using Bonds to Offer Competitively Priced Options to Pay for College

Through our use of QSLBs, we are able to offer students and families access to loans with rates that are with competitive with the federal Direct PLUS Loan. Used by parents of undergraduate students as well as taken out by graduate and professional degree students, the PLUS Loan also has loan fees of more than 4%. For parents or students with creditworthy cosigners, our student and family loans currently offer borrowers a way to pay less in interest and fees than they would by taking out a PLUS Loan or many private loans offered by national lenders.

Infographic Preview: The importance of retaining Qualified Student Loan Bonds in tax leglisation

View full infographic.

Helping Students in School

Our Partnership Advance Education Loan and College Family Loan help students and families pay for college when savings, earnings and financial aid are not enough to cover college costs.

Information about both loans is provided in full detail — from underwriting criteria to examples detailing the annual percentage rate, estimated finance charges and approximate monthly payment amount for each interest rate and in-school payment option — on each loan’s pages. This includes guidance that strongly encourages students and families to explore and exhaust all sources of student financial aid before applying for either of the loans as they are both supplemental private loans.

Options for Refinancing

Through QSLB financing, we also offer a suite of refinance loan options for borrowers with education loans who are seeking different options for repaying that debt. Interested student loan refinance consumers and their potential cosigners can pre-qualify to view the rates and estimated monthly payment amounts they are eligible for. This way, they can determine if they would benefit from refinancing their debt and/or changing their repayment term before completing an application.

Reducing Private Loan Interest Rates for Military Service

To meet the needs of borrowers who are serving our country, we continue to offer reduced interest rates of 0.00% on private loans for service members while serving on active duty.

Who: 658 service members on active duty

Duration: Through June 30, 2025

Total reduction: More than $575,000 in interest reductions for participating service members since 2001

Armed Forces Interest Reduction Program

Through the Iowa Student Loan Liquidity Corporation Armed Forces Interest Reduction Program, service members may have the interest reduced on their private student loans to 0.00% for up to 24 months.

Service members deployed since September 11, 2001, are eligible for the program if, while on federal active duty, they have non-defaulted private student loans owned by Iowa Student Loan during the period of eligibility.