Bill
Bill > HF2241
IA HF2241
IA HF2241A bill for an act providing for partial liability of regents institutions for defaulted educational loans.(Formerly HSB 540.)
summary
Introduced
01/30/2026
01/30/2026
In Committee
Crossed Over
Passed
Dead
Introduced Session
91st General Assembly
Bill Summary
This bill relates to borrowers of educational loans, as those terms as defined under current law. The bill provides that if a borrower defaults on an educational loan obtained to pay for or finance the higher education expenses of a student incurred during the student’s enrollment at an institution of higher education governed by the state board of regents, the institution shall be liable for 10 percent of the amount owed by the borrower as a result of the default. The institution’s liability shall offset 10 percent of the borrower’s liability for the default. The institution’s liability shall be governed by the same terms as the borrower unless otherwise negotiated by the institution.
AI Summary
This bill establishes a new chapter in Iowa law concerning educational loans, defining "borrower" and "educational loan" by referencing existing statutes and specifying that an "institution" refers to a higher education institution governed by the state board of regents. The core provision states that if a borrower defaults on an educational loan taken out to cover higher education expenses at a regents-governed institution, that institution will be responsible for ten percent of the amount the borrower owes due to the default. This institutional liability will reduce the borrower's own responsibility by the same ten percent, and the institution's obligation will generally follow the same terms as the borrower's, unless a different agreement is made.
Sponsors (0)
No sponsors listed
Other Sponsors (1)
Higher Education (House)
Last Action
Introduced, placed on calendar. H.J. 188. (on 01/30/2026)
Official Document
bill text
bill summary
Loading...
bill summary
Loading...
bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.legis.iowa.gov/legislation/BillBook?ga=91&ba=HF2241 |
| BillText | https://www.legis.iowa.gov/docs/publications/LGI/91/attachments/HF2241.html |
Loading...