Iowa State University is ranked 151-200 world wide according to ARWU, this is quite good ranking but not for you, since I know your profile ( which is a very good one) I assume you would be offered admission from much better universities than Iowa State, but you should go for the interview "
A bird in the hand is worth two in the bush".
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2. How good is the location of Iowa State and is it a low cost of living town?
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It's freaking cold there in Iowa, but the cost of living is relatively moderate, around 9k for academic year (according to USNews)
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3. Overall, is it worth it, considering that I do not get any more offers of admission.
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This is not the question you should pose, the question is: what would you achieve if you you stayed in India for another year ( or semester) ??? are you going to do some research and strengthen your profile so that you can enter better universities ?? what I meant is : what would this extra year add to your credentials? if nothing vital then you should definitely go to Iowa State.
BTW, HCI is a tough subject since it is an interdisciplinary filed that combines Physics , Virtual Reality, AI and human behavior. I assume CalmLogic would help you in this since he was aiming for MS in HCI.