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(Undated) -- Tax payers in Iowa are not affected by federal loan interest owed after the end of COVID unemployment payments. Starting Labor Day, ten U.S. states will have to start paying interest on federal loans being used to pay extra coronavirus unemployment benefits. Those states owe a collective $52-billion, which will now be paid back at a 2.3% interest rate. Iowa paid its extra unemployment benefits with state funding, meaning it does not owe the federal government money. Of the ten states that do, California owes the most, $19.5-billion.