Aspire Student Loan Review: A Convoluted History

Do you have Aspire student loans? If so, take time to read our review below. Aspire has a complex story about what loans it has serviced — and is still servicing.

This can be confusing for borrowers, as they may not know exactly who is servicing their loans. We’ll look at exactly who Aspire is, what types of loans it services and how borrowers feel about Aspire.

History of Aspire

Aspire student loans have an interesting history. Back in 1979, Aspire started as a nonprofit company called Iowa Student Loan. In 2001, it launched a for-profit subsidiary to handle services outside of its regular business. That subsidiary was Aspire Resources.

In 2012, Aspire received a contract to service federal student loans. But Aspire soon decided to get out of servicing these loans.

“During the last few years, we tried multiple avenues to obtain more accounts, with assistance from Iowa’s state and federal officials, but unfortunately we were unsuccessful,” said Steve McCullough, President and CEO of Iowa Student Loan. “Going forward, we can now refocus the full attention of our student loan servicing team on assisting borrowers in other student loan programs.”

The federal Direct Loans they serviced were transferred over to the Higher Education Loan Authority of the State of Missouri, or MOHELA. Today, Aspire services for other student loan programs. Here’s what Aspire offers student loan borrowers as of now.

Services available through Aspire

In 2014, another subsidiary of Iowa Student Loan was formed — Aspire Servicing Center, which services leftover federal loans from Iowa Student Loan. Aspire also services private student loans from Iowa Student Loan and its partners.

Aspire federal student loans

Aspire Servicing Center still services federal student loans leftover from Iowa Student Loan. But these aren’t the same loans that were switched over to MOHELA. Federal student loans have several repayment plan options, which include:

• Standard Repayment Plan
• Graduated Repayment Plan
• Extended Repayment Plan
• Income-Based Repayment (IBR) Plan
• Income-Sensitive Repayment Plan

Federal student loans serviced by Aspire could be eligible for loan forgiveness. This includes Public Service Loan Forgiveness (PSLF) and other forms of forgiveness. You must meet the specific requirements for these programs to be eligible.

Aspire private student loans

Aspire Servicing Center also provides support and services for borrowers with private loans. These loans are from Iowa Student Loan and their partners, which include:

• Alliant Credit Union
• Ascentra Credit Union
• American State Bank

These private loan options have varying qualifications for eligibility. Be sure to do your research before deciding on a private student loan.

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Pros and cons of an Aspire student loan

Private loans serviced by Aspire Servicing Center have good and bad qualities to consider. What do you need to know about Aspire student loans?

Pros

• Interest rate reduction: You can earn a 0.25% interest rate reduction for setting up automatic monthly payments.
• Cosigner release: Borrowers meeting specific requirements can apply for a cosigner release.
• Military discount: Qualified members of the U.S. armed forces can get a rate reduction.

Cons

• Restrictive loans: They are for Iowa residents attending colleges across the country as well as for students from around the country attending colleges in Iowa.
• Lackluster customer support: Reports of poor customer service (more on that soon).
• Membership required: Most partner student loans require borrowers to be a member of the credit union or be a bank customer.

An Aspire private loan can help borrowers fill the gaps in college funding. Unfortunately, there are several restrictions that disqualify many students.

What current borrowers are saying about Aspire

According to Aspire, it received high customer service ratings from the Department of Education. However, this refers to the federal Direct Loans it used to service.

Aspire Servicing Center isn’t accredited by the Better Business Bureau, but it does have an A+ rating. This doesn’t mean that all borrowers are happy, though. There are many reports of poor customer service and support through Aspire, like many other third-party loan servicers. Complaints often relate to:

• Inconsistent information
• Poor communication
• Customer service staff with little student loan knowledge

For example, a recent borrower shared a complaint on the BBB website. They wanted information about Teacher Loan Forgiveness for their student loan. They claim they were placed on hold several times. According to the borrower, a customer service representative hung up on them because they were asking too many questions. They also asked the representative to slow down because he was talking too fast.

Aspire responded that they have since provided the proper information now, and the customer service representative in question no longer works there.

There are also several complaints that have been filed with the Consumer Financial Protection Bureau (CFPB). One complaint said Aspire reported their loans being 90 days past due. This was despite their credit report showing they are current. This issue resulted in a drop in their credit score.

Another borrower shared that Aspire canceled an automatic payment without their knowledge. The borrower switched checking accounts, and Aspire didn't note the change. This canceled payment effectively canceled the borrower’s interest rate reduction.

Most loan servicers have some complaints from borrowers. It’s tough to argue against an A+ rating from the BBB, but often, that doesn’t tell the whole story.

Should you go through Aspire for loans?

Take time to weigh your decision if you’re interested in an Aspire student loan. You either need to be a resident of Iowa or attend school in Iowa. You may also have to deal with less-than-stellar customer service. If you think you’ll need extra attention, Aspire might not be the best option. It depends on your academic and financial needs.

If you have loans serviced by Aspire, and aren’t satisfied with your service, you can refinance your student loans. By refinancing, you can choose your own loan servicer. Not only that, but you could also secure a lower interest rate and possibly save thousands of dollars in interest.

Your student loans deserve your time and attention. If you need help choosing, consider a consult with Student Loan Planner®. We can analyze your situation to discover the best payment strategy.