KLS Keeping Law Simple Legislation in plain English

Straight-ahead summaries built from the official bill text. We keep the source links front and center and leave the decision up to you.

Back to Iowa

HF2241 • 2026

A bill for an act providing for partial liability of regents institutions for defaulted educational loans.(Formerly HSB 540 .)

A bill for an act providing for partial liability of regents institutions for defaulted educational loans.(Formerly HSB 540 .)

Education
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
COMMITTEE ON HIGHER EDUCATION
Last action
2026-01-30
Official status
Introduced, placed on calendar. H.J. 188 .
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

A bill for an act providing for partial liability of regents institutions for defaulted educational loans.(Formerly HSB 540 .)

A bill for an act providing for partial liability of regents institutions for defaulted educational loans.(Formerly HSB 540 .)

What This Bill Does

  • A bill for an act providing for partial liability of regents institutions for defaulted educational loans.(Formerly HSB 540 .)

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2026-01-30 Iowa Legislature

    Introduced, placed on calendar. H.J. 188 .

Official Summary Text

A bill for an act providing for partial liability of regents institutions for defaulted educational loans.(Formerly HSB 540 .)

Current Bill Text

Read the full stored bill text 
House

File

2241

-

Introduced

HOUSE

FILE

2241

BY

COMMITTEE

ON

HIGHER

EDUCATION

(SUCCESSOR

TO

HSB

540)

A

BILL

FOR

An

Act

providing

for

partial

liability

of

regents

institutions

1

for

defaulted

educational

loans.

2

BE

IT

ENACTED

BY

THE

GENERAL

ASSEMBLY

OF

THE

STATE

OF

IOWA:

3

TLSB

5406HV

(2)

91

je/ns

H.F.

2241

Section

1.

NEW

SECTION

.

262C.1

Definitions.

1

As

used

in

this

chapter,

unless

the

context

otherwise

2

requires:

3

1.

“Borrower”

means

the

same

as

defined

in

section

261F.1.

4

2.

“Educational

loan”

means

an

educational

loan,

as

defined

5

in

section

261F.1,

for

which

a

loan

agreement

is

entered

into

6

on

or

after

July

1,

2026.

7

3.

“Institution”

means

an

institution

of

higher

education

8

governed

by

the

state

board

of

regents.

9

Sec.

2.

NEW

SECTION

.

262C.2

Default

on

educational

loan

——

10

liability

of

institution.

11

If

a

borrower

defaults

on

an

educational

loan

obtained

to

12

pay

for

or

finance

the

higher

education

expenses

of

a

student

13

incurred

during

the

student’s

enrollment

at

an

institution,

the

14

institution

shall

be

liable

for

ten

percent

of

the

amount

owed

15

by

the

borrower

as

a

result

of

the

default.

The

institution’s

16

liability

shall

offset

ten

percent

of

the

borrower’s

liability

17

for

the

default.

The

institution’s

liability

shall

be

governed

18

by

the

same

terms

as

the

borrower

unless

otherwise

negotiated

19

by

the

institution.

20

EXPLANATION

21

The

inclusion

of

this

explanation

does

not

constitute

agreement

with

22

the

explanation’s

substance

by

the

members

of

the

general

assembly.

23

This

bill

relates

to

borrowers

of

educational

loans,

as

24

those

terms

as

defined

under

current

law.

25

The

bill

provides

that

if

a

borrower

defaults

on

an

26

educational

loan

obtained

to

pay

for

or

finance

the

higher

27

education

expenses

of

a

student

incurred

during

the

student’s

28

enrollment

at

an

institution

of

higher

education

governed

by

29

the

state

board

of

regents,

the

institution

shall

be

liable

for

30

10

percent

of

the

amount

owed

by

the

borrower

as

a

result

of

the

31

default.

The

institution’s

liability

shall

offset

10

percent

32

of

the

borrower’s

liability

for

the

default.

The

institution’s

33

liability

shall

be

governed

by

the

same

terms

as

the

borrower

34

unless

otherwise

negotiated

by

the

institution.

35

-1-

LSB

5406HV

(2)

91

je/ns

1/

1