Is ISL Education Lending legitimate for FAFSA gap financing?

Thanks for sharing your experience! Do they do those weird credit checks that show up multiple times on your report? That happened to my brother with another lender and it tanked his score for a while.

I've already appealed my SAI score because my mom lost her job after we filed the FAFSA. They did give me an extra $1,200 in grants, but that still leaves me short. The financial aid office said I've maxed out federal options unless my parents take the PLUS loan, which they can't because of their credit.

This happened to me too! When my parents were denied for PLUS loans I actually qualified for additional unsubsidized loans automatically. Did your fin aid office tell you about that option? It's not advertised well but it's a thing.

That doesn't sound like ISL Education Lending's practices based on their regulatory filings and Better Business Bureau profile. They're actually a nonprofit state-based organization in Iowa (Iowa Student Loan) that's been operating since 1979. Did your cousin perhaps use a different lender with a similar name? There are several predatory lenders with similar-sounding names that specifically target students who've been rejected by mainstream options.

I did ask about payment plans, but UMass requires the full semester payment upfront unless you enroll in their payment plan by June 1st, which I missed because we were waiting on the FAFSA appeal decision. Now my only options are to pay the full amount or get a loan.

Thanks! I'm in Massachusetts - do you know if they lend here? Their website wasn't super clear about their service area.

Pretty sure they do, but double-check by starting an application - it'll tell you right away if your state isn't eligible. The pre-qualification doesn't affect your credit score.

I've tried calling FSA multiple times but keep getting stuck on hold forever and then disconnected. So frustrating! I've spent literal hours trying to get through to ask about those additional unsubsidized loan options someone mentioned earlier.

You might want to try Claimyr (claimyr.com) for getting through to FSA. My niece used it last month when she had issues with her FAFSA verification and couldn't get through on the regular line. It basically holds your place in line and calls you when an agent is ready to talk. Saved her hours of hold time. There's a video showing how it works here: https://youtu.be/TbC8dZQWYNQ

That's good to know - my aunt already agreed to cosign if needed. She has great credit so hopefully that helps get a better rate.

This is excellent advice. With today's interest rate environment, variable rates are particularly risky. The Federal Reserve has indicated potential rate increases, which would directly impact variable rate loans. Always calculate the maximum potential payment under worst-case scenarios before choosing variable rates.

That's a really good point I hadn't considered. I'll definitely look into their hardship policies before making a decision. Any specific terms or red flags I should look for in the loan agreement?

Look for these specific terms in their policy documents: 1. Length of forbearance periods (12 months total is decent) 2. Whether interest capitalizes during forbearance 3. Available repayment plans if you have lower income 4. Discharge options in case of permanent disability 5. Any prepayment penalties Also call their customer service with specific scenarios to see how they respond - that can tell you a lot about their flexibility.