New Challenges, New Solutions
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New Challenges, New Solutions Helping Iowa Students and Families in Changing Times. New Challenges. Many changes to methods in recent years due to: New regulations Credit market disruptions Economic circumstances. Our Mission. Remains steadfast

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New Challenges, New Solutions Helping Iowa Students and Families in Changing Times

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New challenges new solutions helping iowa students and families in changing times

New Challenges, New Solutions

Helping Iowa Students and

Families in Changing Times


New challenges

New Challenges

  • Many changes to methods in recent years due to:

    • New regulations

    • Credit market disruptions

    • Economic circumstances


Our mission

Our Mission

  • Remains steadfast

    • To help Iowa students and families obtain the resources necessary to succeed in postsecondary education

  • More changes to come due to:

    • New federal legislation

    • Continuing market challenges

  • Consistency in mission will help us overcome these challenges


Federal student loan changes

Federal Student Loan Changes

  • Health Care and Education Affordability Reconciliation Act of 2010

    • Eliminates Federal Family Education Loan Program (FFELP)

    • Mandates federal student loans be financed and disbursed by government’s William D. Ford Federal Direct Loan Program (Direct Loan)

    • Prohibits lenders from financing federal student loans beginning July 1, 2010


What s next

What’s Next

  • Future role exists for:

    • Iowa banks in supplemental private student loan programs

    • Iowa Student Loan in federal student loans


Impact of economy on iowa students and families

Impact of Economy on Iowa Students and Families

  • Overall cost of higher education increases while Iowa families’ budgets remain strained

  • Lower appropriations raise tuition and fees at public institutions

  • Budget cuts reduce financial assistance (such as state scholarships and grants)

    More alternative funding options will be needed for students and families to access college


Iowa alliance private student loan program sm

Iowa Alliance Private Student Loan ProgramSM

  • 19 Iowa-area banks pooled funds to provide private loans this school year to more than 1,000 students, many with no other funding options

  • Seeking bank partners for two-year (2010 – 2012) program

    • Will offer no-cosigner loans to students who have exhausted all state and federal financial aid options

  • Interested in participating?

    • Call Suzanne Lowman at (515) 273-7421


Iowa alliance private student loan program sm1

Iowa Alliance Private Student Loan ProgramSM

  • 2010 – 2012 program details

    • School-certified no-cosigner loans

    • Borrower must be Iowa resident or attending eligible Iowa college

    • Prime-based interest rate (floor of 4.50%, add-on rate of 4.50%)

    • 10% origination fee

    • For minimal service fee, Iowa Student Loan provides underwriting and full servicing of loans


Supplemental private student loans

Supplemental Private Student Loans

  • Need exists for additional private student loan programs

  • Iowa banks can assist students who need supplemental funding to stay in college

  • Iowa Student Loan can help Iowa banks create their own private student loan program by:

    • Providing expertise

    • Providing administrative services

    • Empowering banks to help Iowa families pay for college


Iowa student loan and federal student loans

Iowa Student Loan and Federal Student Loans

  • Reconciliation act recognized benefits of state-based nonprofits like Iowa Student Loan

    • Top-quality local customer service

    • Value-added local programs

    • Local jobs and economic activity

  • Provisions allow state-based nonprofits opportunity to service new federal Direct Loans

  • Iowa Student Loan will work with U.S. Department of Education to provide loan servicing


New solutions

New Solutions

  • Students and bank partners would benefit from Iowa Student Loan providing service for both federal Direct Loans and private student loans

    • Students would correspond with only one organization to make payments and call with questions

      We hope to continue working with Iowa bank partners to navigate these changes and help Iowa students and families achieve their college goals


Questions

Questions?


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