Iowa student loan liquidity corporation

Understanding the Iowa Student Loan Liquidity Corporation

The Iowa Student Loan Liquidity Corporation (ISLLC) is a private, non-profit organization established to help students and parents secure funding for post-secondary education. Operating as a tax-exempt public charity, ISLLC acquires and services student loans, playing a crucial role in making college more accessible for many Iowans. It also offers programs like Upromise to help accelerate loan repayment.

What is the Iowa Student Loan Liquidity Corporation?

The Iowa Student Loan (ISL) is a private, non-profit corporation founded in 1979 with the mission of helping students and their parents obtain the necessary funds for post-secondary education. Located in West Des Moines, Iowa, ISL has assisted over 260,000 individuals in meeting their college financing needs. It operates as a tax-exempt organization under section 501(c)(3) of the Internal Revenue Code.

The Iowa Student Loan Liquidity Corporation (ISLLC) is a related public charity, also organized under 501(c)(3) and located in West Des Moines, IA. ISLLC primarily provides funding for the acquisition of student loans, often those obtained under the United States Higher Education Act of 1965. Beyond acquisition, ISLLC also offers various services for these loans. As a public charity, it is required to file IRS forms 990 and 990 EZ, and contributions made to the corporation are tax-deductible as per law. Historically, the corporation has managed significant financial operations to support its mission of facilitating student lending.

How Does the Upromise Program Help with Student Loans?

Upromise is a notable program offered by the Iowa Student Loan Liquidity Corporation designed to help students repay their education loans faster and assist families in saving for future educational expenses. This program is available free of charge to all loan account holders with the corporation.

The Upromise program works by allowing contributions from participating companies where you spend money. This means that everyday purchases can translate into payments towards your student loans. You can also invite friends and family members to join Upromise, enabling them to contribute to your student loan repayment as well. It's considered an effective method for managing and reducing the burden of educational debt.

What Was the Controversy Regarding School Reimbursements?

In May 2007, the Iowa Student Loan Liquidity Corporation announced a significant change: it would no longer offer cost reimbursements to schools. This decision was mirrored by schools, which also stated they would not seek such reimbursements in the future. The apprehension stemmed from concerns that students might be unduly influenced by financial aid staff at schools to use specific loan products.