Aspire Student Loan 2025 Review

Did you know that, as of June 2024, Americans owe over $1.6 trillion in student loans? Younger generations are consistently seeking a college education, and such high education was never cheap.

Aspire Student Loan is one of the services that can assist with student loan repayment. If you’re here, you’ve probably heard this name before and are wondering if it’s reliable or legitimate.

This guide will lay out everything you need to know about Aspire so you can tell for sure whether it’s a loan servicer you can trust. 

Key Takeaways

• Aspire Student Loan is a student loan servicer that primarily focuses on private student loans, offering various repayment plans and potentially lower interest rates for military members and those with autopay.
• Aspire loans are suitable for Iowa residents, military members, and borrowers seeking interest rate reductions, but they generally have higher interest rates for non-members and may not be suitable for first-time borrowers or those studying outside of Iowa.
• Before dealing with Aspire loans, it’s crucial to carefully review terms and conditions and consult with a financial advisor to make the most out of their services. 

What Is Aspire Student Loan?

Aspire Student Loan, or Aspire Resources Inc., is a for-profit student loan servicer subsidiary of the non-profit organization Iowa Student Loan, which was established in 1979.

Aspire Resources Inc. was established in 2001 to manage services beyond Iowa Student Loan’s standard operations. In 2012, Aspire received a contract from the U.S. Department of Education to service federal Direct Loans.

However, this arrangement only lasted until 2015, after Aspire exited the federal loan servicing contract due to insufficient revenue to offset operating costs. It eventually transferred its federally-held loans to the Higher Education Loan Authority of the State of Missouri (MOHELA). 

What Are Aspire’s Services?

Aspire specializes in managing and servicing student loans, primarily focusing on two main categories: 

Federal Student Loan

Current federal loan borrowers with Aspire receive comprehensive account management services, which include but aren’t limited to:

• Processing monthly payments.
• Sending detailed billing statements.
• Maintaining up-to-date loan records.

Students can also access multiple repayment options like:

The Standard Repayment Plan

This traditional option involves fixed monthly payments over a 10-year period. Borrowers know exactly what they’ll pay each month, simplifying budgeting.

This can help you clear your debt faster with higher monthly payments, but it may also be a financial burden. You may think that you can make the payments initially but fail to keep up later on. Accordingly, you’ll need reliable financial advice to handle this. 

The Gradual Repayment Plan

The gradual plan starts with lower monthly payments that increase every couple of years.

If you don’t have much money on hand right now, this plan can be easier for you, but it can go over your budget if you don’t plan well. Once again, a professional may be useful. 

The Extended Repayment Plant

The extended plan is more suitable if your loan is too large to budget over 10 years (which is the expected payment period of the previous two plans).

The extended repayment plan spans approximately 25 years, offering reduced monthly payments but resulting in longer debt duration and higher interest.

The Income-Based Repayment Plan

In this plan, monthly payments adjust based on the borrower’s income and family size. The amount typically ranges from 10% to 15% of discretionary income (which is the amount of money left after you pay the necessary expenses).

This flexibility is ideal if you work on a freelance basis or experience income fluctuations that make the other plans risky.

Private Student Loan

Private loans are Aspire’s primary service area, and it works in partnership with Iowa Student Loan and affiliated educational institutions. 

However, unlike federal loans, these loans come without government backing. This doesn’t mean they’re risky, but it means you’ll be looking at different terms and conditions compared to federal loans. 

When Is Aspire Student Loan a Great Fit?

The short answer is that Aspire’s student loan is situational.

Generally, you don’t get to choose the loan servicer you’re assigned to. However, if your situation is among the list below, then you may be lucky to have Aspire as your servicer: 

You’re a Qualified Military Member

Military service members get special treatment through any loan program, including Aspire. Under the Servicemembers Civil Relief Act, your federal loans receive a 6% cap during active duty.

Note: The 6% interest cap applies to loans taken out BEFORE active duty service began, not all federal loans during service.

You Require Interest Rate Reduction (Conditional) 

Student loan borrowers (and borrowers in general) always look for ways to reduce their interest costs. Aspire student loan servicing can make this easier if you set up automatic monthly payments by reducing your interest rate by 0.25%

The percentage may not seem that high, but it does make a difference over time. Let’s say you have a $60,000 loan. In that case, the 0.25% reduction will save you around $888 in interest over 10 years, assuming a 5% interest rate.

Note: This 0.25% reduction is applicable to most loan servicers and isn’t a unique advantage to Aspire. 

You Need to Choose Among Different Payment Plans

Federal Family Education Loans through Aspire come with multiple repayment options (that we mentioned earlier) to appeal to various borrowers. This is useful if you want to have multiple choices when budgeting is a priority.

You Want to Release Your Cosigner

Many student loan borrowers start with a cosigner. A cosigner is someone (typically a parent) who signs the loan agreement with the student (the primary borrower) to take on the responsibility of repaying the loan if the primary borrower fails to do so. 

Aspire allows you to release your cosigner to provide independence. After making 24 consecutive on-time payments and meeting credit requirements of 670+, you can apply to remove your cosigner. 

Your application will be reviewed within a month, proving your financial responsibility and improving the credit profile of your cosigner once they’re released from the obligation. 

Note: Cosigner release criteria can vary over time and should be verified directly with Aspire.

Consider other options if any of the following apply to your situation:

You’re Not Studying in Iowa

Aspire’s loan services are heavily focused on Iowa students. You can still utilize their loans if you study in another state; you’re likely to face limited loan opinions and higher interest rates.

Most out-of-state students find better rates and more flexible terms with other loan providers or federal student loans.

You’re Not a Member of the Credit Union

Aspire works with specific credit unions and membership matters. You need to join Aspire Credit Union or one of their partner credit unions to access the best loan rates and benefits.

Credit union membership requires living in certain areas or having family ties to current members. 

You can still qualify without membership, but your interest rates could rise, and you might not qualify for certain repayment plans. 

In other words, most non-members save more money with traditional banks or student loans. 

A Few Extra Words

Ultimately, navigating Aspire’s services requires careful consideration of your specific options to determine what works best for you. This shouldn’t be a problem if you’re not a first-time borrower. 

However, most people who do research are first-time borrowers, which is why you need expert advice or a student loan planner before you borrow money that can affect your finances for years to come. 

Consult our professionals at Student Loan Professor for the best financial advice. We’ll offer you tailor-made advice based on your individual situation.