The bill establishes the Armed Forces Reserve Component Scholarship Program within the College Student Aid Commission in Iowa, aimed at supporting members of the reserve forces of the United States armed forces who are enrolled as full-time students in eligible institutions. Qualified students can receive scholarships for up to eight semesters, with the amount determined by their financial need or the cost of tuition and mandatory fees, depending on whether they are attending a community college or a state-regulated institution. The bill also outlines the eligibility criteria for students, including the requirement to maintain satisfactory academic progress and to complete necessary application forms.

Additionally, the bill stipulates that if a student discontinues attendance after receiving scholarship payments, the institution must refund the commission the amount of the scholarship, except in cases where the student is ordered to active duty. It also specifies that members who have already obtained a baccalaureate degree or have been discharged under dishonorable conditions are ineligible for the scholarship. The commission is tasked with maintaining records of participants and scholarship values, and it has the authority to waive certain requirements for students called to active duty to facilitate their use of the scholarships within five years of completing their service obligations.