Iowa offers a wonderfully detailed resource for you — the Iowa College Student Aid Commission. On the website, there are many different valuable sources of advice and information, such as the financial literacy success lessons, which will help you discern which types of student aid are most appropriate for you.
Programs such as Buttonwood also provide software for managing student loans, as well as web-based learning modules for understanding key concepts of personal-finance management.
The types of student loans you should consider are listed below:
Any federal loans should always be your first choice. You are automatically considered for these loans when you complete and file the FAFSA (Free Application for Federal Student Aid).
Here are some guidelines for completing this step of the process:
Don’t make the same mistake over 2 million others make every year, which is that they fail to submit the FAFSA because they assume they won’t qualify. The federal government’s student loans are quite comprehensive, and almost everyone qualifies for some kind of financial aid.
The State of Iowa packages a couple of attractive loan repayment programs for certain groups of students:
For 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, which are implemented to bring working professionals into the state’s health industry.
For 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 under-served school in the state.
Oregon students who are looking beyond the conventional federal sources of funding will be looking for either institutional loans or private loans. These two types of loans are closely related, and both will require credit checks and come with higher interest rates.
They will, however, be a suitable source of funding for many students. The key is to check out all the details with every organization you consider borrowing from, and make sure to find some figures on how much the total cost will be.
Some features to pay attention to are repayment deadlines and interest accrual periods, which are the main difference between student loans and other types of loans.
Institutional loans are loans that are offered by educational institutions to assist their students. Not surprisingly, you’ll need to contact your college or university for more detailed information on the loans that might be available.
Many institutional loans are given first to those students who can demonstrate a financial need for them, and just like private loans, you’ll often need to have good credit.
Standard banks like Wells Fargo, SallieMae, SunTrust, and Citi Bank will all offer student loan packages.
As discussed before, you’ll want to shop around, and pay attention to details like when repayment must begin after you leave school, and when interest will begin to accrue on your loan. Read the fine print, and don’t let the details slip by before you sign anything.
The Partnership Advance Education Loan is a supplemental private loan program that is only available to Iowa students. You will require a creditworthy cosigner for a Partnership Advance Education Loan, but other aspects of this loan can be much more affordable than standard private loans.
This loan program is offered in five options: three fixed-rate options and two variable-rate option.
Fixed-rate Option 1:
Fixed-rate Option 2:
Fixed-rate Option 3:
Variable-rate Option 4:
Variable-rate Option 1:
The Iowa Student Loan website offers clear summaries of the Partnership Advance Education loan, along with clear examples of how these rates would apply to a loan.
This type of forthcoming information is exactly what you should look for when applying for loan programs. If you are considering a company that is even slightly less than candid about the financial details, stop working with them.
The Iowa Alliance Private Student Loan Program is an exception among private loan programs, as it does not require a cosigner or stringent credit check. It is designed specifically for students who have been denied a traditional supplemental private student loan.
To qualify for an Iowa Alliance Private Student Loan, you must have been denied a private loan that requires a cosigner, and you must also meet the following underwriting criteria:
This criteria may not cover all cases, and more detailed information can be found here,
For more information on planning for student loans visit the Iowa College Student Aid Commission website.