Private Student Loan Repayment Plans
Some private student loans serviced by Iowa Student Loan feature automatic deferment of principal and interest throughout the borrower’s in-school period (at least half-time enrollment) and the grace period, while others require monthly interest payments when the borrower is still in school. Please refer to your credit agreement for details about your specific loan.
You have the option of making payments while the loan is in deferment. While your loan is in the deferment stage, you will receive monthly statements that show the interest that is accruing on the loan.
Once your loan is out of deferment, repayment of principal and interest will begin, with payments due monthly. Iowa Student Loan will establish the minimum payment amount equal to the amount necessary to repay the loan in full. This equal or level repayment term is the default option for private loan repayment.
Alternative Repayment Plans
If you need an alternative repayment plan for your private loans, Iowa Student Loan offers a Graduated Repayment plan and a Select 2 Repayment plan.
| Repayment Plan |
Description |
| Graduated |
This repayment plan begins with a base minimum monthly payment, which increases by 10% every 24 months or two years. For variable interest rate loans, this increase is on top of any adjustments made due to increases in the interest rate. |
| Select 2 |
This plan allows you the option to pay primarily only the interest during the first 24 months or two years of repayment. The amount increases to an equal amount following the first 24 months. |
Find the Best Plan for You
To learn more about alternative repayment plans for any Iowa Student Loan private loan and to find the best plan for you, call (800) 243-7552 to speak with a loan counselor.
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