DES MOINES, Iowa (AP) — Officials say new radio ads aired by the nonprofit Iowa Student Loan Liquidity Corp. may mislead people about whether federal or private loans are their best option.
In general, federal loans offer the lowest interest rates and the most flexibility if someone encounters financial hardships, so students are urged to exhaust all federal options before looking at private loans.
The Des Moines Register reports (http://dmreg.co/18pacIv ) the new ads aired by the nonprofit compare its private loans to federal ones and encourage borrowers to choose its loan.
The Iowa Attorney General’s spokesman Geoff Greenwood says officials will work with Iowa Student Loan to make sure the benefits of private and federal student loans are made clear to consumers.
Iowa Student Loan officials say they will work to address the concerns.
Information from: The Des Moines Register, http://www.desmoinesregister.com