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 annual estimates of the annual percentage rate (APR) for the federal direct plus loan, along with the assumptions used for these estimates. Additionally, the corporation must share the addresses of its internet sites that contain information on potential APRs for college family loans and partnership loans, as well as a comparison chart of the terms and conditions of these loans against the federal direct plus loan.

Upon receiving this information, the bureau is tasked with verifying its accuracy and determining if the college family loan or partnership loan offers a lower APR than the federal direct plus loan. If a lower rate is identified, the bureau must publish a statement on its website and notify higher education institutions in Iowa to include this information in their financial aid offers. The bill emphasizes the importance of transparency in student loan options and encourages prospective students and their families to consider federal loan programs before opting for state loans.