Iowa College Student Aid Commission Lender Partners Commit to Providing
Education Loan Choices for Students and Families
Des Moines, IA, March 6, 2008 - Recent announcements concerning the instability of funding for federally insured student loans and private educational loans have caused many to be concerned about limited access to student loans for college students. These announcements come at a critical time as students and families are beginning to make plans for education financing for the 2008-2009 academic year. While there are signs of distress in financing loans obtained through the Federal Family Education Loan Program (FFELP), the good news is that Iowa students and families have many student loan financing options available to them next year.
"Many of our lender partners, both local and national, have stepped up to the plate to ensure that access to a college of choice remains attainable and affordable for Iowa students," stated Karen Misjak, Executive Director of the Iowa College Student Aid Commission (Commission). "The Commission works with over 250 lenders who participate in the Federal Stafford, Parent PLUS, and Grad PLUS loan programs. Many of these lenders also provide competitive private loan products. In addition, we have received requests from other lenders who would like to work with the Commission to help Iowa students and families pay for college," explained Misjak.
A list of lenders who have guaranty agreements with the Commission, and their contact information is available on the Commission's website at http://www.iowacollegeaid.gov/commissioncentral/participatinglenders.html. "All of our lender partners would be more than happy to provide further information regarding how their student loan products can provide education funding solutions to students and families," said Misjak.
FFELP lenders have historically provided attractive borrower benefits such as interest rate reductions for
on-time payments which ultimately reduce the cost of the loan. Unfortunately, the loan liquidity issue has
affected the benefits that some lenders will offer this year which may increase the cost of the loan to students. Students and parents should review loan terms before selecting a lender. Comparing lender repayment terms
may help parents and students save money in the end. Criteria to consider when selecting a lender, as well as calculators for determining the total cost of a loan, are available on the Commission's website at http://calculators.iowacollegeaid.gov/co/ICSAC/.
The Commission is dedicated to connecting Iowa students and families to the essential resources, services and information to help students succeed. In addition to providing scholarships, grants, and loan forgiveness to Iowa students, we also help students with career planning. Our new outreach unit is gearing up to help students, parents, and high school counselors understand all aspects of planning, preparing, and paying for college. The Commission offers free programs and services to ensure that a college education or advanced training programs are accessible to all Iowa families. Information about products provided by the Commission is available on the Commission's website at www.IowaCollegeAid.gov.
About the Iowa College Student Aid Commission
As the state's designated guaranty agency for the Family Federal Education Loan Program (FFELP), the Commission guarantees more than $526 million annually in student loans from private lenders to support over 79,000 Iowa students. In addition, the Commission administers state scholarship, grant, and loan forgiveness programs, provides borrowers with assistance to avoid the serious consequences of default, conducts research and distributes higher education data, and offers Iowans assistance in obtaining student financial aid and college-related information. More information is available at www.IowaCollegeAid.gov.
Posted 03/07/08 to www.NASFAA.org. Posting of press releases is done as a service to Members and does not imply endorsement or support by NASFAA. NASFAA does not review this information for content or accuracy.
