Senate Amendment to House File 703 H-8197 Amend House File 703, as passed by the House, as follows: 1 1. By striking page 1, line 3, through page 3, line 26, and 2 inserting: 3 < Sec. ___. NEW SECTION . 261M.1 Definitions. 4 As used in this chapter, unless the context otherwise 5 requires: 6 1. “Bureau” means the bureau of Iowa college aid of the 7 department of education. 8 2. “Corporation” means the Iowa student loan liquidity 9 corporation. 10 Sec. ___. NEW SECTION . 261M.2 Student loan information. 11 The corporation shall provide the following information to 12 the bureau: 13 1. An estimate of the annual percentage rate of the federal 14 direct plus loan as well as the assumptions used by the 15 corporation to prepare the estimate. The corporation shall 16 provide this information annually after the interest rate for a 17 federal direct plus loan is established. 18 2. The address of the corporation’s internet site that 19 includes information on possible annual percentage rates for 20 a college family loan and partnership loan offered by the 21 corporation and the disclosures required by 34 C.F.R. §601.11. 22 The corporation shall notify the bureau when the annual 23 percentage rate for the college family loan or partnership loan 24 changes. 25 3. The address of the corporation’s internet site that 26 includes a chart comparing the terms and conditions of the 27 federal direct plus loan with those of the college family loan 28 and the partnership loan. The corporation shall notify the 29 bureau when any information on the chart is changed. 30 Sec. ___. NEW SECTION . 261M.3 Analysis of student loan 31 information. 32 Upon receiving information from the corporation as required 33 by section 261M.2, the bureau shall do all of the following: 34 1. Provide the estimate and assumptions required by section 35 -1- HF 703.3329.S (1) 91 mb 1/ 3 #1.

261M.2, subsection 1, to the superintendent of banking. The 1 superintendent shall review the estimate and assumptions and 2 report the superintendent’s findings as to the accuracy and 3 validity of the estimate and assumptions to the bureau. 4 2. Using the report provided pursuant to subsection 1 and 5 any other resources available to the bureau, determine if 6 the information included in the chart described in section 7 261M.2, subsection 3, is accurate. If the bureau determines 8 any information is inaccurate, the bureau shall notify the 9 corporation of the inaccuracy and the manner in which the 10 inaccuracy can be corrected. 11 3. Compare the estimated annual percentage rate for the 12 federal direct plus loan to the annual percentage rates for 13 the college family loan and the partnership loan and determine 14 if the college family loan or the partnership loan may offer a 15 lower annual percentage rate than the federal direct plus loan. 16 Sec. ___. NEW SECTION . 261M.4 Online statement. 17 If the bureau determines, based on section 261M.3, 18 subsection 3, that the college family loan or the partnership 19 loan may offer a lower annual percentage rate than the federal 20 direct plus loan, the bureau shall publish on the bureau’s 21 internet site a statement that contains the information 22 required by this section. The bureau shall remove the 23 statement if a change in annual percentage rate results in 24 the college family loan or the partnership loan no longer 25 having the lower rate. The statement must include all of the 26 following: 27 1. An explanation that the supplemental student loan 28 program offered by the state of Iowa, which includes the 29 college family loan and the partnership loan, offers an 30 annual percentage rate that is lower than the estimated annual 31 percentage rate of the federal direct plus loan. 32 2. The estimated annual percentage rate of the federal 33 direct plus loan and the address of the corporation’s internet 34 site described in section 261M.2, subsection 2. The bureau 35 -2- HF 703.3329.S (1) 91 mb 2/ 3

shall update this information as applicable interest rates and 1 annual percentage rates change. 2 3. The address of the corporation’s internet site described 3 in section 261M.2, subsection 3. 4 Sec. ___. NEW SECTION . 261M.5 Information required in 5 offers of financial aid. 6 By October 1 each year, if the bureau determines, based on 7 section 261M.3, subsection 3, that the college family loan 8 or the partnership loan may offer a lower annual percentage 9 rate than the federal direct plus loan, the bureau shall 10 send to each institution of higher education in this state 11 eligible to receive funds through the college family loan or 12 the partnership loan offered by the corporation the information 13 required by this section. Each institution shall include the 14 information in all offers of financial aid sent to prospective 15 students or their families. The bureau shall notify each 16 institution if a change in annual percentage rate results in 17 the college family loan or the partnership loan no longer 18 having the lower rate, in which case the institution shall no 19 longer be required to include the information unless notified 20 otherwise by the bureau. 21 1. An explanation as described in section 261M.4, 22 subsection 1. 23 2. The address of the bureau’s internet site that includes 24 the statement required by section 261M.4. 25 3. The address of the corporation’s internet site described 26 in section 261M.2, subsection 3. > 27 2. By renumbering as necessary. 28 -3- HF 703.3329.S (1) 91 mb 3/ 3