Facts About Iowa Student Loan
Iowa Student Loan was established in 1979 as a private, nonprofit corporation, and its mission is to help Iowa students and families obtain the resources necessary to succeed in postsecondary education. Currently, Iowa Student Loan helps nearly 240,000 students pay for college.
Based in West Des Moines, Iowa, the organization:
- Employs about 275 employees and manages more than $3.6 billion in student loans.
- Is self-funded and self-capitalized.
- Is governed by a board of directors that, since its inception, has been appointed by the governor of Iowa.
- Does not have shareholders, nor does it receive state appropriations.
Operating as a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code, Iowa Student Loan is subject to strict regulation of its exempt purpose and use of funds. No funds may be used for the private benefit of any officer or director of the company.
How Iowa Student Loan Operates
Iowa Student Loan disburses and collects its own loans together with private lender partners. It also services Federal Family Education Loan Program (FFELP) loans taken out before July 1, 2010, on its own behalf and on behalf of the Iowa College Student Aid Commission.
Iowa Student Loan supports schools and students by providing innovative interactive solutions for their use as they apply for and process student loans. Iowa Student Loan reinvests its earnings in Iowans through vital programs targeted in the greatest areas of need. These include forgivable loans to nurses and teachers who agree to work in Iowa; supplemental private student loans with interest rate and credit subsidies; and financial and in-kind support of the Iowa College Access Network® (ICAN), which offers free help to students, parents and counselors. ICAN operates as an independent nonprofit 501(c)(3) educational organization with its own board of directors.
Iowa Student Loan Products and Programs
Iowa Student Loan offers innovative products and services, developed specifically to best serve Iowa students and families, particularly those who would not otherwise be able to afford a college education.
The Iowa Student Loan Nursing Education Loan Forgiveness Program, which offers loan forgiveness rebates totaling between $10,000 and $20,000 over a four-year period, was created to provide recruitment and retention incentives to reduce the shortage of nursing educators and nurses in Iowa.
The Iowa Student Loan Teacher Education Loan Forgiveness Program is designed to aid recruitment and retention of teachers in state-designated shortage areas, with loan forgiveness up to $6,000.
Iowa Student Loan Reinvests in Iowans
Iowa Student Loan uses resources beyond what is required to fund its reserves to offer programs vital to Iowa students and families. Its board of directors works with policymakers, schools, lenders and other local partners to identify areas that are of the most critical need in Iowa. To directly impact these areas, Iowa Student Loan designs and supports local value-added programs and services, free college planning services and loan forgiveness programs.
ISL Service Corp.
ISL Service Corp. is a wholly owned, taxable subsidiary of Iowa Student Loan. It was created to house Iowa Student Loan's activities that might fall outside of its tax-exempt purpose, such as reselling the software it develops or providing loan services to other student loan providers. ISL Service Corp.'s after-tax earnings go directly to Iowa Student Loan specifically to help the students that the company serves. No officers of Iowa Student Loan receive any compensation from ISL Service Corp.
How Iowa Student Loan Differs from the Iowa College Student Aid Commission
Iowa Student Loan is a private, nonprofit corporation that receives no state appropriations. Iowa Student Loan finances student loans through bond issues and works with colleges, universities and financial institutions to make those loans available to Iowa students and their families. The organization services FFELP student loans and supplemental private student loans and works to help borrowers avoid default.
Iowa College Student Aid Commission
The Iowa College Student Aid Commission (ICSAC), by contrast, is a state agency that is a political subdivision of the state of Iowa. Under state statute, it administers the state's scholarships and grants, performs research for the governor and legislature. It also performs collections and other activities to help prevent defaults..
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