Private loans may be used as a source of financial aid when federal aid options have been exhausted. A private loan is subject to credit analysis and may require a co-signer. When determining what private loan program of choice, some of the following factors should be examined:
- Does the loan require a co-signer?
How much is the origination fee on the loan?
An origination fee is the amount of money that the lender keeps off the top of the loan proceeds. For instance, if $1000 is borrowed with a 5% origination fee, the borrower will actually have $950 disbursed towards their account, as the lender keeps $50. When the loan is repaid, payments are based on borrowing $1000.
- How much is the interest rate on the loan? Will it change during repayment?
- When does the loan repayment start? Can the loan be deferred if the student goes back to school?
Preferred Lender List Disclosures
The following list of lenders are those selected by the Iowa State University Office of Student Financial Aid as its' preferred lenders. A student is not required to borrow from a lender on this list, and may apply for a private student loan with any lender. As required by state and federal law, the preferred lender list has the following disclosures:
- This list was selected through a Request For Information process. Lenders submitted information to the Office of Student Financial Aid concerning their loan products.
- Lenders were evaluated based on efficiency of loan processing, customer service, interest rates, origination fees, and repayment incentives.
- Lenders were selected based on efficiency of loan processing, customer service, interest rates, origination fees, and repayment incentives.
- Each lender on this preferred lender list is unaffiliated with the other.
- A student is not required to borrow from a lender on this list, and may apply for a private student loan with any lender.
The maximum available federal grant is:
- Pell Grant - $5645
- SEOG - $4000 (Award amounts are dependent on federal funding. Awards available at Iowa State University may be less.)
- TEACH Grant - $4000
The maximum available federal loan is:
- Stafford Loan - $5500 freshman; $6500 sophomore; $7500 junior and seniors; $20500 graduate student; and $40500 Veterinary Medicine student. Independent undergraduate students receive an additional $4000 as freshman and sophomores, and $5000 as juniors and seniors.
- Perkins Loan - $5500 undergraduates. (Award amounts are dependent on federal funding. Awards available at Iowa State University may be less.)
- PLUS Loan - Borrower is eligible to borrow Cost of Attendance minus other Financial Aid. The PLUS Loan is subject to credit analysis.
- Required Truth in Lending Act (TILA) disclosures are provided for each lender on the preferred lender list. TILA disclosures are attached as a PDF file for the borrower to download. View Private Lenders