Iowa HSB540 makes regents institutions partially liable for 25% of defaulted educational loans for students enrolled at these institutions.

Iowa HSB540 establishes that institutions of higher education governed by the state board of regents will be liable for 25% of the amount owed by a borrower who defaults on an educational loan taken out for higher education expenses. This liability offsets 25% of the borrower's liability for the default. The institution's liability is governed by the same terms as the borrower's unless otherwise negotiated. This provision applies to loan agreements entered into on or after July 1, 2026.

Iowa HSB540 makes regents institutions partially liable for 25% of defaulted educational loans for students enrolled at these institutions.

Iowa HSB540 establishes that institutions of higher education governed by the state board of regents will be liable for 25% of the amount owed by a borrower who defaults on an educational loan taken out for higher education expenses. This liability offsets 25% of the borrower's liability for the default. The institution's liability is governed by the same terms as the borrower's unless otherwise negotiated. This provision applies to loan agreements entered into on or after July 1, 2026.