Concerning information regarding certain state and federal student loan programs

This bill concerns information regarding certain state and federal student loan programs and provides duties of the bureau of Iowa college aid of the department of education (bureau), the Iowa student loan liquidity corporation (corporation), and certain institutions of higher education in Iowa. The bill requires the corporation to provide specified information to the bureau. Required information includes an estimate of the annual percentage rate (APR) of the federal direct plus loan as well as the assumptions used by the corporation to prepare the estimate, the address of the corporation’s internet site that includes information on possible APRs for a college family loan and partnership loan offered by the corporation, and 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 bill requires the bureau, upon receiving the required information, to determine if the information included in the chart is accurate and notify the corporation of any inaccuracies. The bill requires the bureau to compare the estimated APR for the federal direct plus loan to the APR for the college family loan and the partnership loan and determine if the college family loan or the partnership loan may offer a lower APR than the federal direct plus loan. If the bureau determines that the college family loan or the partnership loan may offer a lower APR than the federal direct plus loan, the bill requires the bureau to publish on the bureau’s internet site a statement that contains specified information until the college family loan or the partnership loan no longer has a lower APR. Required information includes 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 APR that is lower than the estimated APR of the federal direct plus loan; the estimated APR of the federal direct plus loan and the address of the corporation’s internet site that includes information on possible APRs for college family loans and partnership loans; and 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. By October each year, if the bureau determines that the college family loan or the partnership loan may offer a lower APR than the federal direct plus loan, the bill additionally requires the bureau to send specified information to each institution of higher education in Iowa eligible to receive funds through the college family loan or the partnership loan. Each institution must include the information in all offers of financial aid sent to prospective students or their families until the bureau determines otherwise and notifies the institution. Required information includes 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 APR that is lower than the estimated APR of the federal direct plus loan; the address of the bureau’s internet site that includes the statement required by the bill; 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; and 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.