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IA HSB540
SB
Status
1/13/2026
Primary Sponsor
Higher Education
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AI Summary
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Regents institutions (universities governed by the Iowa Board of Regents) would be liable for 25% of the amount owed when a borrower defaults on an educational loan used to finance expenses during enrollment at that institution.
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The institution's 25% liability directly offsets the borrower's liability, reducing the defaulted borrower's responsibility by that same amount.
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Applies only to educational loans with agreements entered into on or after July 1, 2026.
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The institution's liability would be governed by the same terms as the borrower's loan unless the institution negotiates different terms.
Legislative Description
A bill for an act providing for partial liability of regents institutions for defaulted educational loans.(See HF 2241.)
Last Action
Committee report approving bill, renumbered as HF 2241.
1/30/2026