Iowa 2025-2026 Regular Session

Iowa House Bill HF703

Introduced
2/28/25  
Engrossed
3/10/25  

Caption

A bill for an act concerning information regarding certain state and federal student loan programs.(Formerly HSB 152.)

Impact

The legislation is set to influence state laws by ensuring that borrowers have access to accurate and comparative information about different loan programs. Each year, the bureau must analyze and disseminate findings related to the APRs of the college family loan and partnership loan, particularly focusing on whether they present a better financial choice compared to federal loans. This move is anticipated to increase the utilization of state loan options that could potentially offer lower interest rates, ultimately maximizing financial aid effectiveness for students in Iowa.

Summary

House File 703, known as the Increasing Student Financial Aid Awareness Act, aims to enhance transparency and awareness regarding certain state and federal student loan programs in Iowa. The bill mandates the Iowa Student Loan Liquidity Corporation to provide specific information to the Bureau of Iowa College Aid concerning the annual percentage rates (APRs) of various student loan options, including the federal direct plus loan, college family loan, and partnership loan. This information is intended to inform potential borrowers of the financial implications of these loans, thereby promoting better financial decision-making among students and their families.

Contention

Notably, the bill includes a stipulation that educational institutions must incorporate this loan information in all financial aid offers sent to prospective students, fostering a culture of transparency among institutions of higher education. However, there may be contention around the necessity of providing such detailed comparisons, as some may argue that this places an additional bureaucratic burden on lending institutions. Moreover, the focus on promoting state loans over federal options could raise discussions about the adequacy of funding and support mechanisms provided by the federal government.

Companion Bills

IA HSB152

Related A bill for an act concerning information regarding certain state and federal student loan programs.(See HF 703.)

Previously Filed As

IA HF2622

A bill for an act relating to the powers, duties, and responsibilities of state government entities associated with the budget, financial control, and information technology, making penalties applicable, and making appropriations.(Formerly HSB 695; See HF 2708.)

IA HF2708

A bill for an act relating to the powers, duties, and responsibilities of state government entities associated with the budget, financial control, and information technology, making penalties applicable, and making appropriations. (Formerly HF 2622, HSB 695.) Effective date: 07/01/2024.

IA HF2457

A bill for an act providing for education on the holocaust for students and teachers in school districts.(Formerly HF 2197.)

IA HF2347

A bill for an act relating to education, including by requiring community colleges and certain private institutions of higher education to publish information related to the average income and student debt of graduates, requiring school districts to provide students enrolled in grades eleven and twelve with information related to the average income and student debt of graduates of postsecondary institutions in the state, and modifying provisions related to supplementary weighting.(See HF 2615.)

IA HF244

A bill for an act relating to loan repayments made by the college student aid commission under the mental health professional loan repayment program and including applicability provisions.(Formerly HSB 47.)

IA HF2153

A bill for an act relating to the college student aid commission's reporting requirements. (Formerly HSB 563.) Effective date: 07/01/2024.

IA HF688

A bill for an act concerning the state rulemaking process, related matters pertaining to agency functions, and including effective date provisions. (Formerly HSB 81.) Effective date: 07/01/2023, 01/01/2024.

IA HF151

A bill for an act relating to the establishment of a mental health practitioner loan repayment program, and providing appropriations.(Formerly HSB 9.)

IA HF431

A bill for an act relating to money transmission services.(Formerly HSB 128; See HF 675.)

IA SF2409

A bill for an act relating to the powers, duties, and responsibilities of state government entities associated with the budget, financial control, and information technology, making penalties applicable, and making appropriations.(Formerly SF 2375, SSB 3173.)

Similar Bills

IA HSB152

A bill for an act concerning information regarding certain state and federal student loan programs.(See HF 703.)

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