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STATE OF IOWA
KIM REYNOLDS
GOVERNOR
May 06, 2026
The Honorable Paul Pate
Secretary of State of Iowa
State Capitol
Des Moines, Iowa 50319
Dear Mr. Secretaiy,
I hereby transmit:
House File 703, an Act concerning information regarding certain state and federal student
loan programs.
The above House File is hereby approved on this date.
SinArely,
Governor of lowL^^
cc: Secretary of the Senate
Clerk of the House
STATE CAPITOL DES MOINES, IOWA 50319 515.281.5211 WWW.GOVERNOR.IOWA.GOV
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House File 703
AN ACT
CONCERNING INFORMATION REGARDING CERTAIN STATE AND FEDERAL
STUDENT LOAN PROGRAMS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. SHORT TITLE. This Act shall be known and may be
cited as the "Increasing Student Financial Aid Awareness Act".
Sec. 2. NEW SECTION . 261M.1 Definitions.
As used in this chapter, unless the context otherwise
requires :
1. "Bureau" means the bureau of Iowa college aid of the
department of education.
2. "Corporation " means the Iowa student loan liquidity
corporation .
Sec. 3. NEW SECTION . 261M.2 Student loan information.
The corporation shall provide the following information to
the bureau:
1. An estimate of the annual percentage rate of the federal
direct plus loan as well as the assumptions used by the
corporation to prepare the estimate. The corporation shall
provide this information annually after the interest rate for a
federal direct plus loan is established.
House File 703, p. 2
2. The address of the corporation's internet site that
includes information on possible annual percentage rates for
a college family loan and partnership loan offered by the
corporation and the disclosures required by 34 C.F.R. §601.11.
The corporation shall notify the bureau when the annual
percentage rate for the college family loan or partnership loan
changes .
3. The address of the corporation's internet site that
includes a chart comparing the terms and conditions of the
federal direct plus loan with those of the college family loan
and the partnership loan. The corporation shall notify the
bureau when any information on the chart is changed.
Sec. 4. NEW SECTION . 261M.3 Analysis of student loan
information.
Upon receiving information from the corporation as required
by section 261M.2, the bureau shall do all of the following:
1. Provide the estimate and assumptions required by section
261M.2, subsection l r to the superintendent of banking. The
superintendent shall review the estimate and assumptions and
report the superintendent's findings as to the accuracy and
validity of the estimate and assumptions to the bureau.
2. Using the report provided pursuant to subsection 1 and
any other resources available to the bureau, determine if
the information included in the chart described in section
261M.2, subsection 3, is accurate. If the bureau determines
any information is inaccurate, the bureau shall notify the
corporation of the inaccuracy and the manner in which the
inaccuracy can be corrected.
3. Compare the estimated annual percentage rate for the
federal direct plus loan to the annual percentage rates for
the college family loan and the partnership loan and determine
if the college family loan or the partnership loan may offer a
lower annual percentage rate than the federal direct plus loan.
Sec. 5. NEW SECTION . 261M.4 Online statement.
If the bureau determines, based on section 261M.3,
subsection 3, that the college family loan or the partnership
loan may offer a lower annual percentage rate than the federal
direct plus loan, the bureau shall publish on the bureau's
internet site a statement that contains the information
House File 703, p. 3
required by this section. The bureau shall remove the
statement if a change in annual percentage rate results in
the college family loan or the partnership loan no longer
having the lower rate. The statement must include all of the
following :
1. An explanation that the supplemental student loan
program offered by the state of Iowa, which includes the
college family loan and the partnership loan, offers an
annual percentage rate that is lower than the estimated annual
percentage rate of the federal direct plus loan.
2. The estimated annual percentage rate of the federal
direct plus loan and the address of the corporation's internet
site described in section 261M.2, subsection 2. The bureau
shall update this information as applicable interest rates and
annual percentage rates change.
3. The address of the corporation's internet site described
in section 261M.2, subsection 3.
Sec. 6. NEW SECTION . 261M.5 Information required in offers
of financial aid.
By October 1 each year, if the bureau determines, based on
section 261M.3, subsection 3, that the college family loan
or the partnership loan may offer a lower annual percentage
rate than the federal direct plus loan, the bureau shall
send to each institution of higher education in this state
eligible to receive funds through the college family loan or
the partnership loan offered by the corporation the information
required by this section. Each institution shall include the
information in all offers of financial aid sent to prospective
students or their families. The bureau shall notify each
institution if a change in annual percentage rate results in
the college family loan or the partnership loan no longer
having the lower rate, in which case the institution shall no
longer be required to include the information unless notified
otherwise by the bureau.
1. An explanation as described in section 261M.4,
subsection 1.
2. The address of the bureau's internet site that includes
the statement required by section 261M.4.
House File 703, p. 4
3. The address of the corporation's internet site described
in section 261M.2, subsection 3.
4. A statement that students and their families should
utilize federal loan programs for students before considering a
federal direct plus loan, college family loan, or partnership
loan. s-x A
_
PAT GRASSIÆY TÎMY SINCLAIR
Speaker of the House President: of the Senate
I hereby certify that this bill originated in the House and
is known as House File 703, Ninety-first General Assembly.
MEGHAN NELSON
Cni^ Clerk of the House
I Kim Reynolds J
• Governor