Iowa Student Loan Liquidity Corp. wants college students to know the ramifications of borrowing too much.

The nonprofit organization announced a program through its online loan application process that will show students how much debt they can expect to incur based on how much money they are taking out in loans.

“It’s kind of an oxymoron for a lender to discourage people from borrowing,” said Tim Bottaro, board chairman of Iowa Student Loan. However, “if they can’t repay it, it doesn’t do us or them any good. … Our No. 1 task is to help students and families succeed in attaining their higher education goals.”

Everyone who applies for a loan through Iowa Student Loan is required to participate in the program. Users must fill out a form asking how much they’ve already borrowed and how much they plan to borrow in the future, as well as what career field they are planning to enter after college. The goal is to give students feedback on what their debt-to-income ratio will be and how much they will have to spend on college loan payments, while taking into account other living expenses.

The program also gives students practical advice on how they can save money, including tips as simple as making coffee at home instead of going to a coffeehouse.

“A lot of times, parents and kids borrow the top amount,” Bottaro said. “But you really look at what do they need versus what do they want.”

The program was unveiled at a March 22 press conference, where it was touted by Gov. Terry Branstad, who earlier this year showed support for a similar program for high school students started by the Iowa College Student Aid Commission.

It’s been in use since December, and some students have decided to borrow less since seeing the long-term ramifications, Bottaro said.

He said Iowa Student Loan is the only lender in the country offering this kind of program, as far as officials know. Since the press conference, organizations around the country have shown interest in it, and the group is considering opening the program to students who are not applying for a loan through Iowa Student Loan.