Picking Out the Right Iowa Student Loans

| January 2, 2012

Every state offers different student loan programs to students. This is why every student should fully research his or her loan options in a particular state. In the state of Iowa, students can choose from two state-specific private student loans to fund his or her education.

The main difference amongst the options one has for student loans in Iowa is the requirement of a co-signer. The Iowa Alliance Private Student Loan Program does not require a co-signer, while the Partnership Advance Education Loan does require a co-signer.

Even though the Iowa Alliance Private Student Loan Program does not require a co-signer, it still has special conditions that must be met to qualify for a loan. First, a student must have been denied a supplemental private student loan that required a co-signer. If a student received an Iowa Alliance Private Student Loan in one year, then he or she will not have to re-apply for the loan in the next year. One requirement that tends to detract students from this loan is a student must not have defaulted on a private or government student loan. In this poor economy, the unfortunate reality is many students end up going into default on a student loan. This would disqualify a student from being eligible to receive the Iowa Alliance Private Student Loan.

There are even more requirements a student must meet to receive an Iowa Alliance Private Student Loan. A student must be attending a non-profit college or university in Iowa. If one attends a for-profit school, then he or she will be unable to qualify for this type of loan. Other requirements for this loan type are that a person must be attending school at least part-time, and he or she must be making satisfactory academic progress.

The Partnership Advance Education Loan has much less rigorous requirements. Under this type of loan, a student simply has to be attending an Iowa school. As mentioned, this type of loan does require a co-signer, which can pose a difficult challenge for some students. Not all students have families who are willing to put their financial well-being on the line for a student to take out loans. In this case, a student will want to research the Iowa Alliance Private Student Loan Program as an alternative option.

In taking out student loans, a student should try to only take out the minimal amount he or she needs.

Category: Student Loan

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