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

This bill requires Iowa regents institutions (public universities governed by the state board of regents) to cover 25% of the amount owed when a borrower defaults on an educational loan used for expenses incurred during their enrollment at that institution. It directly affects borrowers who default on loans taken out after July 1, 2026, and the institutions themselves, which must pay 25% of the defaulted balance instead of the full amount. The institution’s liability offsets the borrower’s debt by 25%, governed by the same terms as the original loan unless negotiated otherwise. The bill applies only to future loans (post-July 2026) and does not change existing default responsibilities.