Military Service Benefits

As a member of the U.S. military, you may be eligible to have your interest rate reduced or eliminated on federal and private student loans.

Please contact Iowa Student Loan to see if you qualify for these benefits. (A representative can call on your behalf.) A copy of your military orders that confirms eligible service is required.

Federal Student Loans

Servicemembers Civil Relief Act

You may be eligible to have your interest rate lowered to 6.00% under the Servicemembers Civil Relief Act if your Federal Family Education Loan Program (FFELP) loan(s) were disbursed before your activation. Late fees are not charged to eligible borrowers. Please contact Iowa Student Loan to see if you qualify for this rate reduction.

Private Student Loans

Soldiers and Sailors Act

You may be eligible to have your interest rate lowered to 6.00% under the Soldiers and Sailors Act. In addition, late fees are not charged to eligible borrowers.

Iowa Student Loan Armed Forces Interest Reduction Program

The Iowa Student Loan Armed Forces Interest Reduction Program provides a benefit of 0.00% interest on private student loans for up to 24 months.

The interest on your private student loans will be reduced to 0.00% for up to 24 months* if:

• You were deployed under Title 10 between Sept. 11, 2001, and Dec. 31, 2010.


• While on federal active duty, you have a non-defaulted private loan owned by Iowa Student Loan during the period of eligibility.

*Iowa Student Loan is obligated to issue a 1099-C form to the IRS and the borrower reporting a reduction of indebtedness of $600 or more. Consult your tax advisor regarding any tax consequences resulting from the interest reduction.

Repayment Assistance

You may be able to defer repayment while you are deployed or mobilized. See military deferment information.