Iowa College Loan Information and Resources

Get the Guidance You Need to Make Smart Decisions

Student loans and financial aid can be confusing. You’ll hear a lot of mixed messages. So how do you know where to locate the RIGHT information? Your home state offers a reliable resource—the Iowa College Student Aid Commission.

The types of student loans you must consider:

  • Federal student loans, the Federal Family Education Loan program (FFELP)
  • State specific student loans and forgiveness programs
  • Private college loans

Your First Step: Federal Student Loans

The federal loans are almost a no-brainer. You automatically are considered for all when you complete and file the FAFSA (Free Application for Federal Student Aid). Don’t make the same mistake over 2 million others make every year: fail to bother to file the FAFSA because they assume they won’t qualify. The federal government’s student loans are quite comprehensive and there are far more students that qualify than there are those that do not.

  • The Stafford Loans are by far the single most disbursed of all. Subsidized Staffords are awarded to students based on need, while the unsubsidized are not. Many students qualify for both. These products feature low fixed interest rates, low fees and flexible repayment terms.
  • Perkins Loans are campus-based aid which means they are not available everywhere and usually are awarded on a first-come-first-served basis. The Perkins funds are reserved for only the neediest students.
  • Parent PLUS Loans give parents of undergrads the financial muscle to finish off paying for their child’s college expenses. These are credit-based, but borrowers with poor credit can certainly opt to sign with a co-borrower.
  • Graduate and Professional PLUS Loans are provided so that grad students maxxed out on their Stafford Loans still have access to affordable federal dollars.

The State of Iowa packages a couple of attractive loan repayment programs for certain groups of students:

Nursing students, the Iowa Registered Nurse and Nurse Educator Loan Forgiveness programs are attractive incentives. If you’ll be working or teaching in Iowa consider these programs an option for you.

Teaching students, the Iowa Teacher Shortage Loan Forgiveness program can help you pay back your Stafford Loans. You may qualify for up to 20% loan forgiveness for each year of teaching service at an underserved school in the state.

Private Loans in Iowa

Private or alternative student loans should be the last option in your arsenal of student loans. Why? Private loans may seem easier to secure—shorter application, can borrow from your hometown bank, you may be able to finance “education extras”—but beware the final cost of these loans. Many come bundled with risky interest rates and built-in fees that pack on thousands to the bottom line.

For more information on planning for student loans visit the Iowa College Student Aid Commission website.