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Did You Know Iowa Student Loan Dropped Their Fixed Student Loan Refi Rates?

Kathryn Morstad

Editor’s Note: Iowa Student Loan is now named ISL Education Lending.

If you’re one of those people who keeps an eye on macro student loan interest rate trends, then you have been watching as rates have continued their downward path. The question is how much lower will they go? We may be reaching the lows now — and it may be the best time to refinance and get the best rate available.

One of the most trusted names in student loan refinancing has dropped their fixed rate to a super low amount, and it may be a great time to consider refinancing your college loans.

ISL Education Lending is now offering a super low 2.55% fixed rate

A premier company in the student loan refinancing space, ISL Education Lending, has announced that they are offering fixed financing at 2.55%. That rate is applicable for loans from a minimum of $5,000 to a max of $300,000 and include the option of a repayment term of 5, 7, 10, 15, or 20 years. In fact, Iowa Student Loan is also waiving all loan processing, application, and origination fees.

If you have been watching student loan refi rates, then you know this is a solid offer for a fixed term loan.

The 4 Best Companies to Refinance Student Loans

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Fixed Rate

4.48% – 7.29% APR 4

Variable Rate

3.53% – 7.24% APR 4
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Fixed Rate

4.49% – 8.99% APR 3

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Fixed Rate

4.39% – 8.99% APR 2

Variable Rate

3.99% – 8.29% APR 2
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Fixed Rate

3.94% – 8.48% APR 5

Variable Rate

Not Offered

But what do you need to qualify for such a great offer?

Like most banks and financing companies, ISL Education Lending has some minimum eligibility requirements that they consider. Obviously, the better your personal statistics—the better the rate you can expect. These are the primary considerations most banks will look at:

  • A minimum credit score of 670 or a cosigner (parent or friend with excellent credit).
  • Stable income with long-term prospects.
  • 40% of less for your debt-to-income ratio which is figured by dividing all of your monthly debt payments by your gross monthly income.

The benefits of a fixed rate vs variable rate loan

In financing, you can get loans with either a fixed or variable interest rate. With a fixed rate loan, your interest rate will stay the same for the life of the loan. So, in terms of the ISL Education Lending fixed rate of 2.55%, no matter what changes in the economy, the rate will always stay the same.

With a variable rate loan, it’s more complicated. They usually start at a lower rate which is what entices people to use them. However, the rate is subject to change annually based on the lender’s prime lending rate plus or minus a predetermined amount.

For example, if the variable rate is Prime +/- 1%, the rate will change to whatever that amount is at that point in time. The downside to this is it’s re-determined annually, so the rate can continue to climb as the prime rate goes up negatively affecting loan interest.

While this has not been much of a factor in the last couple of years, when the economy begins to rebound the Fed will look to raise their lending rate which affects the prime rate for banks and, invariably, loan rates.

Why student loan refinance rates have dropped in 2021

With the country still reeling from the economic impact of the coronavirus pandemic, the Federal Reserve Bank (the Fed) recently reissued dovish (or slow growth) guidance in the quarterly testimony on the economic outlook before both houses of Congress. While the Fed maintained that there were many possible bright spots in the economy, it’s anticipated that 2021 will be the start of a slow recovery predicated on the success of the nationwide vaccine program.

When you couple that news with the extended federal loan deferment program that will now last until September 30, 2021, many private lenders are dropping their 2021 rate projections making it a great time to consider refinancing your student loans before rates rise again.

How to compare the best fixed refinance rates

If you have been keeping your eye on the refi rates waiting for an optimum time to refinance, then you have probably spent a lot of time bouncing from site to site to get the latest, most up-to-date information.

What if we told you there was a better way? At Purefy, we understand the difficulty in staying on top of interest rates offered by multiple companies.

To speed up and simplify the process, our Compare Rates tool quickly provides an in-depth side-by-side comparison of top lenders with their best offers, including ISL Education Lending.

How does it work? You enter some basic personal information and, based on your credit history and income, you receive pre-qualified offers that include interest rate options, terms available, and specific offers.

The lenders that work with Purefy offer loans with no fees and no prepayment penalties. And the best part, all of this information is free and doesn’t impact your credit report whatsoever.

Once you choose a lender

When the time is right and you have chosen a lender, Purefy offers a free consultation with one of our student loan experts who can help you with any questions and with filling out your loan application. Once complete, you will work directly with the lender to finalize the loan and disperse the funds to your current loan holder. Simple, easy, and free.

Summing Up

Fixed rates are often preferred for student loan refinancing over riskier variable rates, and current refinance fixed rates are super low (2.55% with ISL Education Lending). It’s easy to compare lenders and rates and get a side-by-side report that gives you all the financial details that you need to make an informed decision about your future.

Try our Comparison Rate Tool today and take advantage of low interest rates at Purefy.

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ELFI Rate Disclosure

4 ELFI Rate Disclosure:

Education Loan Finance is a nationwide student loan debt consolidation and refinance program offered by Tennessee based SouthEast Bank. ELFI is designed to assist borrowers through consolidating and refinancing loans into one single loan that effectively lowers your cost of education debt and/or makes repayment very simple. Subject to credit approval. See Terms & Conditions. Interest rates current as of 12/01/2022. The interest rate and monthly payment for a variable rate loan may increase after closing, but will never exceed 9.95% APR. Interest rates may be different from the rates shown above and will be based on the term of your loan, your financial history, and other factors, including your cosigner’s (if any) financial history. For example, a 10-year loan with a fixed rate of 6% would have 120 payments of $11.00 per $1,000 borrowed. Rates are subject to change.

SoFi Rate Disclosure

3 SoFi Rate Disclosure:

Fixed rates range from 4.49% APR to 8.99% APR with a 0.25% autopay discount. Variable rates from 4.49% APR to 8.99% APR with a 0.25% autopay discount. Unless required to be lower to comply with applicable law, Variable Interest rates on 5-, 7-, and 10-year terms are capped at 8.95% APR; 15- and 20-year terms are capped at 9.95% APR. Your actual rate will be within the range of rates listed above and will depend on the term you select, evaluation of your creditworthiness, income, presence of a co-signer and a variety of other factors. Lowest rates reserved for the most creditworthy borrowers. For the SoFi variable-rate product, the variable interest rate for a given month is derived by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the nearest one hundredth of one percent (0.01% or 0.0001). APRs for variable-rate loans may increase after origination if the SOFR index increases. The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. This benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. The benefit lowers your interest rate but does not change the amount of your monthly payment. This benefit is suspended during periods of deferment and forbearance. Autopay is not required to receive a loan from SoFi.

Earnest Rate Disclosure

2 Earnest Rate Disclosure:

Actual rate and available repayment terms will vary based on your income. Fixed rates range from 4.64% APR to 9.24% APR (excludes 0.25% Auto Pay discount). Variable rates range from 4.24% APR to 8.54% APR (excludes 0.25% Auto Pay discount). Earnest variable interest rate student loan refinance loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent. The rate will not increase more than once per month. The maximum rate for your loan is 8.95% if your loan term is 10 years or less. For loan terms of more than 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95%. Please note, we are not able to offer variable rate loans in AK, IL, MN, NH, OH, TN, and TX. Our lowest rates are only available for our most credit qualified borrowers and contain our .25% auto pay discount from a checking or savings account.

ISL Rate Disclosure

5 Iowa Student Loan Rate Disclosure:

Fixed Rate Loan Terms: 5 years/60 monthly payments, 7 years/84 monthly payments, 10 years/120 monthly payments, 15 years/180 monthly payments, or 20 years/240 monthly payments. Annual Percentage Rate [APR] is the cost of credit calculating the interest rate, loan amount, repayment term and the timing of payments. This rate is expressed as an APR. Fixed APRs range from 3.94% to 8.48% APR [low to high range with 0.25% auto-debit rate reduction]. Rates are subject to change without notice. Fixed rates will not change during the term. Since there are no fees associated with this loan offer, the APR is the same percentage as the actual interest rate of the loan including a 0.25% auto-debit rate reduction. These rates are subject to additional terms and conditions, and rates are subject to change at any time without notice. All estimates are based on information provided by you and are for informational purposes only, accuracy is not guaranteed and may not reflect actual rates or savings and do not constitute an offer of credit. Your actual rate, payment and savings may be different based on credit history, actual interest rate, loan amount, and term, including your cosigner [if applicable]. If applying with a cosigner, we use the higher credit score between the borrower and the cosigner for approval purposes. All loans are subject to credit approval.

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