Iowa Student Loan: A Leader in Helping Students and their Families

It has proven advantageous to Iowans that Iowa Student Loan is the main holder of student loans in the state. Iowa Student Loan offers students the lowest possible interest rates. The company ensures that available earnings on these loans are returned to Iowans through reinvestments in Iowans, in accordance with its nonprofit mission. In addition, all Iowans benefit from the local jobs, economic growth and tax revenue generated from Iowa Student Loan’s work in Iowa.

In the years between 1997 and 2006, Iowa Student Loan utilized over $120 million of its resources on the following programs to help Iowans:

1991 – Iowa Student Loan and the Iowa College Student Aid Commission initiated the Iowa Partnership Loan Program, as authorized under State statute. This private student loan provides access to college for Iowans who cannot get enough financial aid from other federal and state sources.

1997 – Iowa Student Loan was one of the first student loan organizations to pay the federally-required 3% origination fee on student loans on behalf of borrowers, allowing them to have more money to pay for college. Moreover, the competitive pressure created by Iowa Student Loan and other nonprofit secondary markets in paying these fees forced nearly all loan providers to follow suit. Cumulatively, Iowa Student Loan has paid $45 million in fees on behalf of students, as a means to use its resources to provide more financial aid to students.

1997 – Iowa Student Loan began making “credit ready” private loans for students who did not have creditworthy cosigners. These students cannot get loans elsewhere as they are perceived to be too high of a credit risk. As a nonprofit organization, Iowa Student Loan will make loans to these students who might not otherwise be able to attend college. Over the past year, Iowa Student Loan absorbed over $12 million in loan losses on private loans.

1998 – Iowa Student Loan launched the College Planning Center in West Des Moines, Iowa, to help Iowa high school students, parents and guidance counselors navigate the college selection, admissions and financial aid process. In 2006, a second College Planning Center was added in Cedar Rapids, Iowa. Now over 20,000 Iowans per year utilize the centers’ free services. The outreach to students and their families includes more than 800 presentations per year at Iowa high schools. Iowa Student Loan invests $2 million a year to provide this service and ensure that college-bound students and their families have the best information and resources available.

1999 – Iowa Student Loan developed software to help colleges and lenders originate loans on an automated basis, and along with the Iowa College Student Aid Commission, opened iLink, one-stop customer service for colleges and universities. iLink has greatly improved the speed, efficiency and accuracy in loans made to students. Developing and maintaining this software has cost Iowa Student Loan $3.9 million and operating the iLink Customer Service Center costs Iowa Student Loan nearly $1 million annually.

2004 – Iowa Student Loan dedicated $8 million to forgive loans of nurses who stay in Iowa to help lessen Iowa’s health-care crisis.

2006 – Iowa Student Loan dedicated $10 million to forgive loans of teachers willing to stay in Iowa and teach in critical shortage areas. Students will be better prepared to succeed in college as a result.

2006 – Iowa Student Loan began offering an Armed Forces Interest Reduction Program to provide 0% interest on private student loans for its borrowers serving in the U.S. Armed Forces during wartime efforts since Sept. 11, 2001.

2007 – An economic impact study concludes that Iowa Student Loan, its business activity and 370 employees have a significant, positive impact on the state’s economy.