Student Loan Accounting

Frequently Asked Questions

When is the IRS tax form 1098-E with information regarding student loan interest paid mailed?

The University of Iowa is required to have form 1098-E in the mail by January 31st. Allowing for mail time, expect to have your form by the end of the first week in February. Every effort is made to get these forms out as soon as possible.

Does the University offer ACH?

The University does offer ACH. The payments can come from either your checking or savings account each month. You may elect to have the payment processed on either the 15th or 24th of the month. You also have the option of having the balance due debited or an arranged amount debited from your bank account. To participate, print out and complete the authorization form. Mail to the Student Loan Accounting Office, Room 5 Calvin Hall, Iowa City, Iowa, 52242. For further information on ACH, please contact this office.

What do I do if I don't have a job or become unemployed/underemployed after I begin repayment?

The most important thing for you to do is to keep in contact with this office. We are able to work with you when you experience financial difficulties and are able to monitor your account individually. There is usually no need to contact our office before your loan enters repayment because financial situations can change within a short period of time.

What happens if I don't pay my loans back?

There are several things that happen when loans are not repaid. Academic transcripts will not be released to you. Transcripts might be released directly to a potential employer if we have reason to believe that there is an intent to repay the loan(s). Generally we will require a letter on file to this extent and prepayment of the transcript. Academic transcripts will not be released to other institutions for furtherance of education. Loan(s) will be reported to three major credit bureaus with a history showing the delinquency or default with the probability of affecting any future credit you apply for. Your loan(s) will be referred to collection agencies with the cost of collection passed on to you, the borrower. You may be assessed up to an additional 66%. Your loan(s) could be referred back to the Department of Education (Perkins Loans) where any future tax returns could be withheld to pay for the debt. For further information on what may happen to other defaulted federal loans, please see the Department of Education Debt Collection Service home page.

Does the University of Iowa do loan consolidations?

The University of Iowa does not offer a consolidation program but some loans that are billed and collected by the Student Loan Accounting Office are eligible for consolidation. Those would be Federal Perkins Loans and Health Profession Student Loans. Possible agencies to contact regarding their consolidation programs would be Sallie Mae (phone: 1-888-272-5543), Iowa Student Loan Liquidity Corporation (phone: 1-800-243-7552), Nelnet (phone: 1-808-496-4722), or the William D. Ford Direct Loan Consolidation program (phone: 1-800-557-7392). If you have previously borrowed William D. Ford loans, you must use their program for all consolidations.

What happens if I leave the University before my computer loan is billed in full?

The computer loan program has a provision that if you leave The University of Iowa before your loan is billed in full, the unbilled principal balance will become due immediately. We understand that this may cause an undue burden to pay in full and are able to accept payment arrangements on the loan. What is required is a letter from you on file stating your intended repayment arrangement. Generally, we do require a larger payment than what was being paid on a monthly basis.

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