The State of Iowa authorizes supplemental student loans administered by ISL Education Lending. The College Family Loan/Parent Partnership Loan allows parents to borrow funds to help pay for their student's college education.
Compare Your Borrowing Options
If you are considering borrowing to help pay for your student's higher education expenses, it is important to compare loan options carefully. Differences in interest rates, fees and repayment terms can affect the total cost of borrowing by thousands of dollars over the life of the loan.
Before choosing a loan, consider the following:
- The College Family Loan/Parent Partnership Loan offers several options with annual percentage rates (APRs) lower than the estimated APR of the Federal Direct PLUS Loan. Review the available loan options and required legal disclosures before applying.
- The federal government does not publish an APR for the Federal Direct PLUS Loan. Based on current terms*, the APR is estimated at 10.088% for a $10,000 loan, assuming a fixed interest rate of 9.08%, a 4.228% origination fee and a standard 120-month repayment term.
- Cost is only one factor to consider. The College Family Loan/Parent Partnership Loan has credit score and debt-to-income requirements, while the Federal Direct PLUS Loan does not. Review a side-by-side comparison of the two loan programs to determine which option best meets your family's needs.
* The information on this page is updated periodically as interest rates and fees change for both the Federal Direct PLUS Loan for Parents and the College Family Loan/Parent Partnership Loan.