Iowa student loan liquidity corporation

Student loan plays an important part in a student's career building opportunities. These days, students are less dependent on their parents for higher education and take care of their career needs on their own. Hence one gets into the task of choosing a genuine bank or money-lending corporation that actually makes the process of taking loans for education as hassle free as possible. After all, a student needs to spend more time studying than worrying about term fees and loans! Juggling between class work loads and arranging for loans to pay up for education can be taxing for any student.

Some states of the US have the government helping out the students by opening private non-profit corporations whose sole aim is to take care of providing financial resources to students who need them. Iowa Student Loan Liquidity Corporation is such a corporation that came into existence in 1979 by a proclamation of the then governor of Iowa, Robert Ray. The corporation has partnerships with over 300 money-lenders and institutions of higher education to create a steady support system for the students. The student loan that goes by the term Iowa Student Loan helps students by procreating loans from the money-lenders, servicing the loans and finally purchasing them. A whopping $2.45 billion in loans is currently being held by the corporation made to over 214,000 student borrowers! The benefits of Iowa student loan are plenty making a student's term in college as tension free as possible. From the time a student starts college education to the time he or she passes out, the corporation works with the student from its offices in West Des Moines, Iowa. The student can get competitive borrower benefits and support throughout the term of the loan.

Student Loan Consolidation

The Iowa State University Alumni, in association with Iowa Student Loan Liquidity Corporation is offering students loan consolidation to help them take advantage of falling interest rates on such loans. This is an excellent financial tool for lowering the payment of loans by extending repayment term. Consider the advantage when you find this offer being backed by the federal government!

The money-saving benefits in this scenario are quite significant. You can actually lock your variable rate loans to a fixed one while rates are low. In addition to this, you can save $2,600 on every $10,000 you consolidate! For example, for a consolidated loan amount of $30,000, a 20-year term, a 6.625% interest rate, immediate repayment, and the level payment plan, you can get a 0.75% rate reduction when you make your first six monthly payments on time; 0.25% rate reduction when you make your payments through automatic withdrawal; and 1.5% principal balance reduction when you make your first six monthly payments on time.

What more, you even get to choose a flexible loan repayment plan that further reduces the burden of repayment of loan amount! You can actually choose whether you want to pay a fixed amount each month or start with a low payment and later increase it when you are comfortable with the whole idea of loan repayment. No credit checks either for loan consolidation.

Types of loans available for consolidation

In case you are a student attending or planning to attend a Federal Family Education Loan Program loans (FFELP) college, you get to choose your money-lender. With Iowa Student Loan, there are several borrower benefits for loans such as Federal Stafford Loans, Federal Plus Loan, Federal Grad Student Plus Loan, Federal Student Loan Consolidation Program (as discussed above). While you can actually save $610 on every $5000 loan as well as get 4 rewards (in the form of credits and interest rate reductions) on on-time payments with Federal Stafford Loans, you can save $500 on every $5000 loan as well as receive payment of 8 months of interest (after disbursement of first installment) along with a lowering of interest rate by 0.25% (through automatic debit of payment from checking or savings bank account) with Federal Plus Loan!

When using a money-lender associated with Iowa Student Loan for your Federal Grad Student Plus Loan (with a fixed interest rate of 8.5%), you get a 1% interest rate reduction upon first disbursement. In addition to this, you can receive a 0.25% interest rate reduction when payments are automatically debited from a checking or savings account similar to the Federal Plus Loan. Another useful feature is that grad students can actually defer loan payment while attending school. Federal Grad Student Plus Loan policy has now been extended to graduates and professional students since July 2006.

In addition to the benefits provided through Iowa Student Loan, Iowa Student Loan Liquidity Corporation provides helpline for useful tips on planning and paying for college education to help manage your student loan debts. Valuable points like setting up budgets, planning of affordable loan payment methods, researching the terms and conditions for each loan and the money-lender (check for offer of reduced fees and attractive benefits and repayment terms) providing the loan, etc are covered in detail by the College Planning center of the corporation. A student can actually benefit from the valuable advice on how to plan out money-management while attaining college education through a student loan and cutting back on needless expenses.

After all, one important aspect of keeping a clean chit during loan repayment is to always keep in mind the fact that as a student under a student loan scheme, you have to repay your loan regardless of whether you graduate, find a job or are satisfied with the education that you have received. If you fail to do so, your repayment amounts will go into default, and your credit will be severely damaged. Not only that, you may lose further eligibility for federal aid, and even be sued by your guarantor, or have your salary directed to the concerned money-lender! So choose your loan wisely with all the help provided by Iowa student loan and manage its repayment under the experienced guidance of the loan management staff at the Iowa Student Loan Liquidity Corporation.