Iowa Student Loan (ISL) Education Lending Student Loans Review

Iowa Student Loan (ISL) Education Lending Student Loans: Quick Look

Pros Explained

• In-school loans don’t necessarily require a co-signer: If you can meet ISL Education Lending’s requirements on your own, you can borrow without a co-signer. Iowa and Illinois students are also eligible for no-co-signer loans, which similarly have credit requirements but only come with fixed interest rates. 
• No application, origination, or late fees: Beyond interest charges, you won’t have to pay additional fees on an ISL Education Lending loan. 
• Any family member can borrow on behalf of a student: ISL’s family loans are not limited to parents, but instead are available to any family member or sponsor looking to help a student pay for their education costs. 
• Co-signer release option after 24 months: If you apply for a student loan or refinance loan with a co-signer, you may be able to remove them from the loan after two years of on-time consecutive payments. 

Cons Explained

• High minimum credit score: To get an in-school loan or refinance existing education debt, you’ll need a credit score of 660 or higher.
• No clearly stated forbearance or deferment programs: While ISL Education Lending may offer assistance to students who run into financial hardship, it doesn’t clearly state forbearance or deferment options on its website. 
• Some loan types limited to Iowa and Illinois residents: ISL’s no-co-signer undergraduate loans are restricted to students of Iowa and Illinois colleges, while its no-co-signer graduate loans are only available in Iowa. 
• Variable interest rates not available on some loan types: ISL’s no-co-signer loans and family college loans only come with fixed rates. You won’t get the option to choose between a fixed and variable rate. 

Student Loans Offered by Iowa Student Loan (ISL) Education Lending 

Partnership Advance Education Loan for Undergraduates 

If you need some help paying for college, an ISL Partnership Advance Education Loan might be a good choice. You can borrow up to your school’s cost of attendance, minus any other financial aid you’ve already received, and choose between a fixed and variable interest rate. ISL also lets you postpone payments until after you’ve graduated, though opting to make in-school payments could save you money on interest in the long run. 

Partnership No-Co-Signer Loan for Undergraduates 

If you’re attending college in Iowa or Illinois, you might opt for ISL’s no-co-signer loan option. You’ll need a minimum credit score of 660 and a cumulative GPA of at least 2.75. As an undergraduate, you can borrow up to $17,500 or your school’s cost of attendance, whichever is lower. The minimum loan amount is $2,001 in most states with the exception of Massachusetts, where the minimum is $6,001. 

Partnership Advance Education Loan for Graduate Students 

If you’re pursuing your master’s, PhD, or another advanced degree, ISL’s student loan for graduate students could help you cover costs. The rates and terms match those on its undergraduate loan counterpart, and you can borrow as much as you need to cover your school-certified cost of attendance. 

Partnership No-Co-Signer Loan for Graduate Students 

ISL Education Lending’s no-co-signer loans for graduate students are reserved for students of accredited Title IV institutions or nonprofit schools of nursing in Iowa. You must be completing most of your coursework on campus and have a minimum FICO score of 660 to qualify. Interest rates on these loans are fixed. 

College Family Loan 

ISL’s college family loan is available to parents, family members, and others who want to help an undergraduate or graduate student pay for their education. Interest rates are fixed, and you can borrow up to the student’s school-certified cost of attendance. While some other lenders require you to make immediate payments on parent loans, ISL gives you the choice of immediate repayment, interest-only payments, or deferred repayment while the student is in school. 

Loan Eligibility and Approval

Loan eligibility requirements may vary by loan type, but most share similar criteria. You must: 

• Be the age of majority in your state (or apply with a co-signer who is) 
• Not have a history of student loan default or an active bankruptcy case 
• Attend a nonprofit, Title IV, degree-granting college or university (some nonprofit schools of nursing in Iowa may also qualify) 
• Attend school at least half-time and make satisfactory academic progress 
• Be a U.S. citizen or permanent resident 
• Have a minimum FICO score of 660 and a debt-to-income ratio lower than 40% (or apply with a co-signer who does) 
• Have two years of continuous employment 

As mentioned, ISL’s non-co-signer loans require that students attend an eligible school in Iowa and/or Illinois and, in some cases, maintain a minimum 2.75 GPA. Its other loan types are available in 48 states and Washington, D.C.—only residents of Maine and Oregon are not eligible to borrow. 

Are Co-Signers Required?

Co-signers are not required on ISL Education Lending student loans or refinance loans, but you may need to apply with one or more co-signers if you can’t meet the lender’s underwriting requirements on your own. 

Is Loan Pre-Qualification Available?

ISL Education Lending allows you to pre-qualify for a student loan or refinance loan on its website. You can get pre-qualified in under a minute by entering some basic personal details, including your name, school, and loan amount. ISL Education Lending will run a soft credit check, which won’t impact your credit score, before showing you potential loan offers. 

Loan Fees and Repayment Options

Loan Fees

ISL Education Lending does not charge any fees on its student loans, so you don’t have to worry about origination, application, prepayment, or late fees. 

Loan Discounts

You can qualify for a 0.25% interest rate discount if you set up automatic payments on your loan.

Repayment Options

ISL Education Lending offers repayment terms of 10 or 15 years on undergraduate, graduate, and family loans. After borrowing, you have three options for repayment: 

• Immediate repayment: Start making full payments on interest and your principal balance right away. 
• Interest-only payments: Pay off the interest that accrues each month while you’re in school and make full payments after you graduate. 
• Deferred repayment: Postpone payments until you graduate or drop below half-time enrollment. 

Rewards

ISL Education Lending funds scholarships up to $1,000 for students in Iowa and surrounding states. It also funds cash awards for parents of Iowa students between $250 and $1,000. You can review the rules and apply on ISL’s website. 

Loan Forbearance and Discharge Options

If you run into financial hardship, ISL Education Lending encourages you to call your loan servicer to discuss assistance options and avoid delinquency. While the lender doesn’t disclose specific details of forbearance or deferment programs, it does state that your loan will be forgiven in the event of death or permanent disability. In these circumstances, the Iowa Student Loan Liquidity Corporation will not demand repayment from your co-signer or estate. 

Is Student Loan Refinancing Available?

ISL Education Lending provides student loan refinancing options for borrowers with existing student loan debt who are looking to lower their rate and restructure their loan terms. Along with a general Reset Refinance Loan, ISL offers specific refinance products, including, 

• Parent loan refinance 
• Medical loan refinance 
• Medical resident refinance 
• In-school refinance 

Refinancing rates are fixed and range from 6.93% to 11.58%. You can choose repayment terms of 7, 10, 15, or 20 years. The minimum amount you can refinance is $5,000 (or $10,000 in California), and the maximum amount is $300,000.

While some lenders require you to graduate with your degree before allowing you to refinance, ISL Education Lending will work with students who are still in school. If you’re a medical resident, furthermore, you can opt for monthly payments of $75 until you finish your residency. 

As with its in-school student loans, ISL Education Lending requires a minimum FICO score of 660 to qualify for refinancing. It allows co-signers and offers co-signer release after 24 months of on-time payments, as long as the primary borrower meets certain financial criteria. 

Customer Service

ISL Education Lending has two phone numbers you can contact for assistance:

• Loan questions: Call (844) 268-2203 Monday to Thursday, 8 a.m. to 6 p.m. Central Time, Friday 8 a.m. to 4:30 p.m. CT
• Loan application assistance: Call (800) 542-6005 Monday to Friday, 8 a.m.–4:30 p.m. CT

Alternatively, you can send a secure message on ISL Education Lending’s website. 

Applying for an Iowa Student Loan (ISL) Education Lending Student Loan 

Whether you’re an undergraduate or graduate student, it’s always a good idea to pursue federal financial aid before borrowing a private student loan. By submitting the Free Application for Federal Student Aid (FAFSA), you can access federal grants, student loans, and other assistance. 

If you’ve maxed out your eligibility for federal aid and still have a gap in funding, it may make sense to borrow from a private lender. To get started with ISL Education Lending, you can first pre-qualify for a loan on its website. Pre-qualifying lets you view potential loan offers without impacting your credit. 

If you decide to move forward with a loan, you’ll submit a full application, which will require verifying documentation and a hard credit inquiry. Here’s some of the information you’ll need to have on hand when you apply: 

• Name 
• Address
• School 
• Loan amount 
• Proof of income 
• Employment history 
• Co-signer information, if applicable 

To avoid delays, make sure to upload all the required documents and review your application for accuracy before you hit submit. 

Alternative Choices

Final Verdict

With competitive rates and no fees, ISL Education Lending is worth exploring if you’re in the market for a student loan or student loan refinance. You can easily check your rates online via pre-qualification with no obligation or impact on your credit score. Borrowers may especially appreciate the option of deferred repayment while they get on their feet after graduation. 

At the same time, ISL Education Lending has a fairly hefty credit score requirement of 660, so it might not be a top choice for borrowers who don’t have strong credit or lack a co-signer. If you can meet ISL’s underwriting requirements for credit and debt-to-income ratio, though, you might qualify for an in-school or refinance loan with relatively low costs of borrowing.

Get a Quote

Methodology

Investopedia is dedicated to providing consumers with unbiased, comprehensive reviews of student loan lenders. We collected thousands of data points across 30 lenders—including loan types, interest rates, fees, loan amounts, and repayment terms—to ensure that we help readers make the right borrowing decision for their education needs.