Private Student Loan Repayment Plans

Iowa Student Loan private loans feature automatic deferment of principal and interest throughout your enrollment (at least half time) and the ensuing grace period or until you have reached 84 months from the date of first disbursement, whichever comes first.

You have the option of making payments while the loan is in deferment. While your loan is in the deferment stage, you will receive monthly statements that show the interest that is accruing on the loan.

Once your loan is out of deferment, repayment of principal and interest will begin, with payments due monthly. Iowa Student Loan will establish the minimum payment amount allowed at the maximum term, which is a 20-year term. This equal or level repayment term is the default option for private loan repayment.

If you need an alternative repayment plan for your private loans, Iowa Student Loan offers a Graduated Repayment plan and a Select 2 Repayment plan.

Graduated Repayment

This repayment plan begins with a base minimum monthly payment, which increases by 10% every 24 months or two years. For variable interest rate loans, this increase is on top of any adjustments made due to increases in the interest rate.

Select 2 Repayment

This plan allows you the option to pay primarily only the interest during the first 24 months or two years of repayment. The amount increases to an equal amount following the first 24 months.

To learn more about alternative repayment plans for any Iowa Student Loan private loans and to find the best plan for you, call (800) 243-7552 to speak with a loan counselor.