The Increasing Student Financial Aid Awareness Act establishes new requirements for the Iowa student loan liquidity corporation and the bureau of Iowa college aid regarding the dissemination of information related to state and federal student loan programs. The corporation is mandated to provide the bureau with estimates of the annual percentage rate (APR) for federal direct plus loans, along with the assumptions used for these estimates, and to maintain updated information on its website regarding college family loans and partnership loans. The bureau is tasked with verifying the accuracy of this information and comparing the APRs of the federal direct plus loan with those of the college family loan and partnership loan.

If the bureau finds that either the college family loan or the partnership loan offers a lower APR than the federal direct plus loan, it must publish a statement on its website and notify higher education institutions in Iowa to include this information in their financial aid offers. This statement must explain the benefits of the state’s supplemental student loan program and provide necessary links to the corporation's website for further details. The bill aims to enhance transparency and awareness of student loan options available to prospective students and their families in Iowa.