Types of Student Loans

What Kinds of Student Loans Are Available?

PLUS Loans     Stafford Loans Partnership Loans  
Available to parents borrowing on behalf of dependent undergraduate students and are available to graduate and professional students. Subsidized and unsubsidized Federal Stafford loans are the most common types of education loans. Provide competitive rate loans to students and families who are Iowa residents or non-Iowan residents attending a qualified school in Iowa.

Federal PLUS loans:

  • Are not based on financial need.
  • Require the borrower to pay the interest for the life of the loan.
  • Have a fixed interest rate.
  • Have a 3% federal origination fee and a 1% federal default fee which may be deducted from the loan amount.
  • Have a loan limit equal to the cost of attendance minus other financial aid received.
  • Do not have a grace period. Repayment of principal and interest begins approximately 60 days after final disbursement of the loan.

All Federal Stafford Loans:

  • Have a fixed interest rate if disbursed on or after July 1.
  • Have a 1.5% federal origination fee and 1% federal default fee which may be deducted from the loan amount.
  • Have a grace period. Repayment begins six months after you graduate, leave school, or drop to less than half-time.

Partnership Loans:

  • Require no repayment during students’ in-school period and up to six months after graduation.
  • May be made with a cosigner or without.
  • Provide students with interest-only statements during the period of deferment and they can choose to make monthly interest and/or principal payments.
  • Have different repayment plans available with a maximum repayment period of 240 months.
  • Impose no penalty for prepayment.

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