IowaIowa officials compare student loan rates and share lower-rate options
Iowa College Aid compares loan rates and shares lower-rate information with eligible colleges, whose financial aid offers must tell families to use federal student loans first.
What it does
The state loan corporation gives the Iowa College Aid Bureau a yearly estimate of the federal Direct PLUS loan rate, plus information and a comparison chart for its own loans.
The superintendent of banking reviews the federal loan rate estimate. The bureau checks the loan comparison chart and compares the rates to see whether either state loan may cost less in interest.
When either state loan may have a lower rate, the bureau posts a notice and sends information to eligible colleges. Those colleges include it in financial aid offers to students and families.
Argument forStudents and families could see when a state loan may have a lower rate and receive that information with college financial aid offers.
Argument againstFamilies could focus on the lower rate and overlook loan term differences, even though the law also points them to a chart and says to consider federal student loans first.
More detail
The Iowa Student Loan Liquidity Corporation gives loan rate and comparison information to the Iowa College Aid Bureau. The information covers the federal Direct PLUS loan and the state College Family and Partnership loans. The corporation provides the federal loan estimate each year after that loan’s interest rate is set. It tells the bureau when its loan rates or chart information change.
The bureau checks the loan information, and the superintendent of banking reviews the federal loan rate estimate. The bureau compares the federal Direct PLUS rate with the College Family and Partnership loan rates and checks the chart describing their terms and conditions. If the bureau finds incorrect chart information, it must tell the corporation what is wrong and how to correct it. The bureau performs these reviews after receiving the corporation’s information.
The bureau posts a notice and sends information to eligible colleges when either state loan may have a lower rate than the federal Direct PLUS loan. The college requirement covers Iowa higher education institutions eligible to receive funds through either state loan program. They must include the information in all financial aid offers to prospective students or their families. The bureau removes the notice and tells colleges to stop including the information if a rate change means neither state loan may have the lower rate. The notice includes the federal rate estimate and links to the corporation’s loan information and comparison chart. Financial aid offers must also say to use federal student loan programs before considering the named loans. The bureau sends the information to colleges by October 1 each year when the lower-rate condition is met. It updates or removes the notice, and tells colleges when rates change.
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Where it stands
- Introduced
- Passed 1st Chamber
- Passed 2nd Chamber
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- May 6Signed by Governor Kim Reynolds.Became Law
- May 6Reported correctly enrolled, signed by Speaker and President, and sent to Governor.To Governor
- Mar 16Message from House.
- Mar 12Immediate message.
- Vote recorded Shall the bill pass? Result: pass.Lower
- Mar 12Passed House, yeas 90, nays 1.Major
- Mar 12House concurred in Senate amendment H-8197.
- Mar 11Senate amendment H-8197 filed.Minor
- Mar 11Message from Senate.
- Mar 10Immediate message.
- Vote recorded Shall the bill pass? Result: pass.Upper
- Mar 10Passed Senate, yeas 43, nays 2.Passed 2nd Chamber
- Mar 10Amendment S-5085 filed, adopted.Major
- Jan 29Committee report, recommending passage.Minor
- 2025
- Mar 25Subcommittee recommends passage.Minor
- Mar 24Subcommittee Meeting: 03/25/2025 1:00PM Room 217 Conference Room.
- Mar 18Explanation of vote.
- Mar 12Subcommittee: Taylor, Campbell, and Quirmbach.
- Mar 10Read first time, referred to Education.Minor
- Vote recorded Shall the bill pass? Result: pass.Lower
- Mar 10Message from House.
- Mar 10Immediate message.
- Mar 10Passed House, yeas 87, nays 1.Passed 1st Chamber
- Mar 10Point of order raised on amendment H-1041, ruled not germane.
- Mar 7Amendment H-1041 filed.Minor
- Feb 28Introduced, placed on calendar.Introduced
Education