If you have student loan debt, you know how painful it can be — and how hard it can be to repay those loans. Whether you’re stuck with sky-high interest rates, causing your loan balance to balloon out of control, or you’re just struggling to make payments, it may seem like there’s no light at the end of the tunnel when it comes to loan repayment
One way to tackle your debt is to refinance your current student loans. If you’ve been considering student loan refinancing, one lender to look at is Iowa Student Loan. Despite its name, the company works with borrowers from all over the country, and it offers low interest rates and some unique perks.
Iowa Student Loan: Refinance your student loans
If you’re struggling to keep up with your payments, or simply want to pay off your debt as quickly as possible, student loan refinancing makes a lot of sense. When you refinance, you work with a private lender like Iowa Student Loan to take out a new loan and pay off your existing debt. The new loan has different terms, including a fresh interest rate and a repayment period of your choice.
You could qualify for a loan with a lower interest rate, helping you save money. Or, if you want to reduce your monthly payment and get more breathing room in your budget, you can extend your repayment term.
With Iowa Student Loan’s Reset Refinance Loan, you can choose a repayment term that works for you. If you have good credit, you could qualify for an even lower rate.
Types of refinancing available
Iowa Student Loan offers student loan refinancing for the following loan types:
- Federal loans for students, including Direct Loans and Perkins Loans
- Federal PLUS Loans taken out by graduate students or parents
- Private student loans
- Previously refinanced or consolidated loans
Other types of consumer loans, such as loans taken out for coding bootcamps or specialized training programs, are not eligible for refinancing.
Interest rates and fees
You can see what rate you would qualify for, and compare it with other top lenders, by using Purefy’s rate comparison tool. Iowa Student Loan offers a 0.25% interest rate reduction for setting up automatic payments. There are no origination fees, prepayment fees, or late charges.
To qualify for the lowest rates, you’ll need to select a shorter loan term. Iowa Student Loan offers terms of 5, 7, 10, 15, and 20 years.
To qualify for a Reset Refinance Loan, you must meet the following requirements:
- You must have between $5,000 and $300,000 in student loans
- Your monthly credit payments, such as rent, car payments, and credit card payments, cannot exceed 40% of your gross monthly income. All student loan debt will be treated as if it’s in repayment, even if you’re still within the loan grace period.
- Your FICO credit score must be at least 670.
- You must not have more than two accounts reporting 30-day delinquencies, and you must not have had any delinquencies of 60 days or more within the past two years.
- You must not have any collection accounts, judgments, or wage garnishments in your tax history
- You must not have declared bankruptcy in the past
If you don’t meet the eligibility criteria on your own, you do have the option of adding a cosigner. A cosigner is usually a friend or relative with good credit and a stable income who applies for a loan with you. If you fall behind on the payments, the cosigner is responsible for payments (and any missed payments could hurt their credit, too). Since having a cosigner lessens the risk to the lender, you’re more likely to qualify for a loan — and get a lower interest rate — than you would on your own.
What sets Iowa Student Loan apart?
There are many different refinancing lenders out there. If you’re considering refinancing your loans through Iowa Student Loan, there are four things to keep in mind:
1. Graduated repayment plans are available
If you have trouble affording your payment under a standard 10, 15, or 20-year plan, you may get some relief by signing up for a graduated repayment plan. With this approach, your payments start out low and gradually increase over the length of your loan. You’ll pay more in interest over time with a graduated repayment plan, but that tradeoff may be worth it to get a lower payment while you’re building your career.
2. Financial hardship programs are available
Many refinancing lenders don’t offer financial hardship programs, meaning you have to keep up with your payments or risk delinquency, even if you lose your job. Iowa Student Loan is different. You may qualify for assistance based on your situation. For example, you may be able to postpone making payments temporarily, or make interest-only payments while you get back on your feet. If you need help, contact the lender right away at 855-811-9849.
3. Active duty servicemembers can qualify for reduced interest rates
If you are a member of the U.S. military and are in active service, Iowa Student Loan will offer you a reduced interest rate of 0.00% during your service term. This program will last through June 30, 2021. If you’re on active duty, contact the company as soon as possible so you can qualify for the reduced interest rate.
4. Iowa Student Loan offers loan discharges in cases of death or permanent disability
There are nightmare stories of people taking out loans and passing away or becoming disabled. Many lenders don’t offer discharges in those situations, so the co-signers of those individuals have to keep making payments long after the tragedy occurred.
However, Iowa Student Loans does offer loan discharges in cases of death or permanent disability. If the borrower dies or becomes permanently disabled, the company will completely forgive the loan.
If the cosigner is the one that becomes disabled or permanently disabled, Iowa Student Loan will release the cosigner from their obligation on the loan. In addition to this, the primary borrower will not be required to find another cosigner.
How to apply for the Iowa Student Loan Reset Refinance Loan
You can compare Iowa Student Loan’s rates with other top lenders using Purefy’s rate comparison tool. If you select Iowa, you’ll be taken straight to their website to apply.
You’ll have to provide the following information:
- Phone number
- Mailing address
- You must be a U.S. citizen or permanent resident of the United States
- Social Security number
- Information on your student loans, including amount and loan servicer
- Employer and income information
- Information on your debt, such as credit card or mortgage payments
The application process takes just a few minutes to complete. If approved, you’ll receive a loan offer. Once you accept the offer, Iowa Student Loan will pay off your current loans and you’ll have just one loan going forward.
Once your loans have been refinanced, your new loan will be serviced by Aspire Servicing Center, a subsidiary of Iowa Student Loan.
Refinancing your student loans
If you’re thinking about refinancing your student loans, Iowa Student Loans is a smart option. It offers low interest rates, generous repayment terms, and different payment plans to meet your needs.
However, it’s always a good idea to compare offers from multiple student loan refinancing lenders to make sure you get the lowest rates. With Purefy, you can get offers from several lenders at once, helping you make an informed decision.