ISL Student Loan Refinancing Review
ISL offers refinance loan features like soft credit rate checks, cosigner release after 24 consecutive on-time payments, and dedicated support for credit disputes, identity theft, and online fraud. However, borrowers in Connecticut, Maine, and Puerto Rico are not eligible to apply.
Table of Contents
Editorial disclosure: Our goal is to give you the tools and confidence you need to improve your finances.
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco. Lorem ipsum dolor sit amet, consectetur adipiscing elit.
Our Take
ISL refinance loans are best for creditworthy borrowers seeking competitive fixed rates, no fees, and the ability to prequalify through a soft credit check. They also provide flexible repayment terms and a cosigner release after 24 on-time payments. However, eligibility is limited as borrowers in Connecticut, Maine, and Puerto Rico are not eligible to apply.
Min. Credit Score:
670
Loan Amount:
$5,000 ~ $300,000
Fixed APR:
5.15% - 9.40% with autopay
Variable APR:
N/A
Loan Terms:
5, 7, 10, 15 or 20 years Years
Loan Types Offered:
Private student loans, student loan refinance and Parent loan Refinancing
Pros
- Loans don’t have application, origination or prepayment fees.
- Allows applicants to see the rate they could receive with a soft credit check.
- Offers in-school refinancing
Cons
- Borrowers must be Iowa residents to be eligible for the lowest rates.
What is ISL?
Iowa Student Loan Liquidity Corporation (ISL) is a nonprofit education lender founded in 1979 and headquartered in West Des Moines, Iowa.
Through its Reset Loans, ISL offers nationwide access to its private student loans and refinancing products, which include parent loans and in-school refinancing.
Unlike some other lenders, ISL offers a loan product specifically for those needing to refinance while in-school. However, those using that option may have slightly higher rates and a lower maximum loan refinance amount of $200,000.
Who would benefit the most from ISL Student Loan Refinance?
- Iowa residents, as they will potentially qualify for the lowest rates.
- Borrowers who need an in-school refinancing option.
How can ISL Student Loan Refinance improve?
- Shorten the cosigner release timeline. The requirement of 24 consecutive on-time payments is longer than what some competing lenders offer. Reducing this timeframe could be helpful for borrowers with cosigners.
Terms, fees and details
- Loan terms: 5, 7, 10, 15 or 20 years.
- Loan amounts: $5,000 – $300,000. $6,001 for Massachusetts, and $10,000 for California residents. In-school refinance borrowers can only refinance up to $200,000.
- Soft credit check offered: Yes.
- Allows you to transfer a parent loan to a child: Not publicly disclosed by the lender.
- Application or origination fee: None.
- Prepayment penalty: None.
- Late fees: None.
Friendly Finly Advice
If possible prequalify with multiple lenders before committing to a loan offer. Prequalifying allows you to compare potential rates and terms to ensure you’re getting the lowest rate. Rates can depend on a variety of factors, including credit history and income.
Fixed APR:
3.99 - 8.99% with autopay
Variable APR:
N/A
Min. Credit Score:
680
Max. Loan Amount:
$250,000
Fixed APR:
5.15% - 10.69% with autopay
Variable APR:
N/A with autopay
Min. Credit Score:
N/A
Max. Loan Amount:
$0
How do we select lenders?
About This Comparison:
We select three alternative refinance lenders that offer similar products to the lender featured in this review. These lenders are chosen based on their relevance to common borrower-related information—such as APR ranges, repayment terms, credit score requirements and loan amount options—their overall competitiveness in the refinance market, and their strong performance on our lender rating rubric. Our editorial team makes these selections independently to help borrowers easily compare key features and make an informed decision.
To help readers evaluate whether the featured lender is the right fit for their needs, we include a comparison section highlighting three alternative student loan refinance lenders. These lenders are selected using the following criteria:
1. Direct Relevance to Borrower Decision-Making
We choose lenders whose core offerings overlap with the featured lender—specifically in APR ranges, repayment terms, required credit scores and loan amount minimums/maximums. This ensures borrowers can make an apples-to-apples comparison of the factors most likely to influence their refinance decision.
2. Competitive Position in the Market
Alternative lenders are selected based on their market presence, competitive rates, and borrower-friendly features. We prioritize lenders that are commonly considered alongside the featured lender by refinance shoppers and industry experts.
3. Coverage of a Representative Spectrum of Options
We include lenders that together provide a balanced view of the refinance market, such as:
- A lender with low advertised APRs
- A lender with flexible or unique loan terms
- A lender with broad loan amount ranges or borrower eligibility criteria
- A lender with strong performance on our lender rating rubric
- A lender with minimum credit scores that fit borrowers who may visit the featured lender review.
This mix helps borrowers understand how the featured lender compares across different strengths.
4. Data Availability and Consistency
We only include lenders for which we have current, verifiable information on APRs, repayment options, loan amounts, and eligibility requirements. This ensures the comparison is accurate, transparent, and aligned with our editorial standards.
5. Editorial Independence
Alternative lenders are chosen by our editorial team based solely on borrower benefit and informational value. Lender partnerships or compensation agreements do not influence which lenders are selected or how they’re presented.
How to qualify for ISL Student Loan Refinance
You’ll have to meet ISL’s eligibility criteria to refinance your student loan. The company has various requirements for applicants to meet:
Financial criteria:
We contacted Iowa Student Loan Liquidity Corporation to discuss additional borrower profile details — including minimum income expectations and the typical credit scores of approved applicants — but did not receive further information in time for this review.
While these benchmarks are not publicly disclosed, approval for Iowa Student Loans refinance products generally depends on factors like credit history, income stability and overall ability to repay. If you’re unsure whether you meet these standards, pre-qualifying or speaking directly with a loan specialist can help you better understand your potential eligibility before submitting a full application.
- Minimum credit score: 670
- Debt-to-Income ratio maximum: 45%, if a borrower does not have a mortgage, the maximum is 25%.
- Allow applicants with bankruptcies to apply: No.
Location, citizenship and education criteria:
- Citizenship requirements: A United States citizen or a permanent resident.
- Location restrictions: Connecticut, Maine or Puerto Rico residents are not eligible for an ISL refinance loan.
- Graduation criteria: Applicants don’t have to have graduated to be eligible to apply for the Reset Refinance Loan for in-school borrowers, but must be enrolled at least half-time.
- School criteria: Borrowers must be attending or have attended a college or university that is:
- Nonprofit,
- Title IV eligible
- Degree-granting
- Accredited college
- Percentage of borrowers with a co-signer: Not publicly disclosed.
- Other restrictions: N/A
Friendly Finly Advice
ISL, and other refinance lenders, may use additional criteria to determine eligibility for potential borrowers. Always check the lender’s website and reach out to them with any questions to confirm or inquire about criteria.
Repayment, deferment, forbearance and discharge options
- Immediate full-repayment: Full principal and interest payments.
- Graduated Repayment: Borrowers begin with lower monthly payments that slowly increase over time. This plan is available for eligible seven, 10, 15 and 20-year Reset Loans. While these loans initially offer lower monthly payments, they result in paying more interest over time.
We reached out to Iowa Student Loan Liquidity Corporation to clarify certain deferment details associated with its Iowa Student Loans refinance product but did not receive additional information in time for this review.
While deferment policies may exist for certain circumstances, the full structure and eligibility requirements are not clearly outlined in public materials. Borrowers who anticipate needing temporary payment relief may want to confirm available deferment options directly with the lender before refinancing.
- General deferment: Available at the lender’s discretion for qualifying circumstances such as military service, residency or internship programs or verified financial hardship. ISL requires supporting documentation for each scenario.
- Loans requiring in-school payments: Up to 24 months of deferment for loans that require principal and interest payments or interest-only payments during school and separation periods. Interest continues to accrue.
- Loans deferring in-school payments: Up to 84 months of total deferment time, including in-school and separation periods, for loans that don’t require payments while enrolled.
We also contacted Iowa Student Loan Liquidity Corporation to discuss the forbearance options available through Iowa Student Loans but did not receive clarification before publication.
Because the specific terms and limits of forbearance are not fully detailed publicly, borrowers who may need short-term payment flexibility should consider confirming the policy directly with the lender to better understand how hardship assistance may work.
- Death or disability discharge for borrower: Yes.
- Death or disability discharger for co-signer: While the loan won’t be discharged, borrowers will not be required to find a new cosigner in the event of a cosigner death.
- Co-signer release: Yes, after 24 consecutive on-time payments, and if the borrower meets ISL’s credit and underwriting criteria.
Related: What Happens If a Cosigner On a Private Student Loan Dies?
The ISL student loan refinance customer service experience
- Loan servicer: Aspire Servicing Center.
- Online chat support (Bot, live or both): None.
- Physical location or branch: Yes.
- FAQ experience: ISL provides separate FAQ pages for its Student Loan, Parent Loan, and In-School Refinance products. The FAQs cover the same set of 15+ questions, with answers tailored to that specific loan type.
- Has tools that allow applicants to calculate potential monthly payments: ISL has a Student Loan Refinance Calculator.
- ISL’s track record with customers: ISL Education Lending has a score of 4.6 out of 5 on Trustpilot, based on over 1,600 reviews. Positive reviews highlight the lender’s straightforward application process and responsive customer service. On the other hand, some negative reviews mention issues with uploading and submitting documentation.Some reviewers also mention the eligibility restrictions tied to state residency. Trustpilot reviews reflect ISL’s full range of services, not just its student loan refinance products.ISL has received 36 Consumer Financial Protection Bureau (CFPB) complaints over the last 12 months.The complaints primarily involved issues such as inaccurate credit reporting and how the lender handled credit report errors, along with loan repayment challenges, like needing a more flexible repayment option. Of the 36 complaints, 31 were closed with explanation, four resulted in non-monetary relief, and one received an untimely response. These complaints are not exclusive to their refinance loan product.
Perks and benefits
ISL allows borrowers to schedule in-person appointments at their office in West Des Moines. This could be beneficial for those who may have more complex questions or need more involved assistance.
Promotional offers
Borrowers can receive a 0.25% interest rate reduction by enrolling in autopay. This discount helps borrowers save on interest and pay down their loans faster. Always check with the lender to confirm all offers, additional terms, conditions, exclusions, and availability.
Friendly Finly Advice
Even if ISL has competitive rates, compare multiple refinance lenders before committing to a loan. Prequalifying and comparing lenders is the best way to ensure you’re getting the lowest possible rate and most affordable repayment plan for your budget.
How to apply for an Iowa Student Loans Refinance
- Check your eligibility.
Iowa Student Loans, offered by Iowa Student Loan Liquidity Corporation, evaluates applicants based on credit history, income stability and overall ability to repay. Borrowers can typically apply on their own or with a qualified co-signer.
- Prequalify to explore your rate options.
Start with the lender’s online pre-qualification process to see estimated rates and repayment terms. This step generally uses a soft credit inquiry, allowing you to compare potential offers without affecting your credit score.
- Choose your repayment term.
If you qualify, you’ll be able to review available fixed or variable rate options and select a repayment term that fits your monthly budget and long-term repayment goals.
- Complete the full application.
Move forward with a formal application by submitting documentation such as proof of income, identity verification and current loan statements. A hard credit check is typically performed during underwriting.
- Finalize the refinance and transition your loans.
Once approved, review and sign your loan agreement. Iowa Student Loans will then coordinate payoff with your existing lenders, after which you’ll begin making payments under your new refinance terms.
As you review your offer, it may also be helpful to consider whether applying with a co-signer could improve your rate or approval odds, particularly if your credit profile or income is still developing.
Frequently Asked Questions
ISL offers a soft credit check to prequalify, and cosigner release after 24 consecutive on-time payments, and repayment terms of 5, 7, 10, 15 or 20 years. However, you must be an Iowa resident to be eligible for the lowest rates.
ISL does not issue new federal student loans, but it does allow borrowers to refinance existing federal, private, and Parent PLUS loans. However, you’ll lose federal loan benefits like Income-Based Repayment and Public Service Loan Forgiveness if you refinance a federal student loan.
ISL has a minimum credit score requirement of 670.
ISL allows borrowers to refinance between $5,000 and $300,000, though minimum amounts vary by state: Massachusetts borrowers must refinance at least $6,001, and California residents must refinance at least $10,000. Also, in-school borrowers can only refinance up to $200,000.
ISL does not require borrowers to have graduated to qualify for refinancing. Applicants must be enrolled at least half-time at a qualifying nonprofit, Title IV-eligible, degree-granting institution, or nonprofit school of nursing.
Methodology
Making finance more human through transparent rating methodologies…
Finly reviews student loan refinance lenders using a transparent, borrower-first methodology built around real financial outcomes. We evaluate lenders across six weighted categories—including cost, protections, flexibility and accessibility—using a structured scoring model grounded in what matters most to borrowers.
Our ratings are developed independently and regularly updated to reflect current rates, terms and lender policies, helping you compare options with clarity and confidence. Take a look at our Methodology page for an even more in-depth view of our scoring process.