A bill for an act providing for partial liability of regents institutions for defaulted educational loans.

HF 2241 (Iowa) requires public universities governed by the state board of regents to cover 10% of the amount owed when a student defaults on an educational loan used for tuition during their enrollment. This applies specifically to loans taken out on or after July 1, 2026, and directly affects borrowers who default on these student loans. The bill establishes that the institution’s 10% liability offsets the borrower’s debt under the same terms, unless the institution negotiates different terms. It does not change the borrower’s primary responsibility for the remaining 90% of the debt.