HSB 540: Providing for partial liability of regents institutions for defaulted educational loans

What it does

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 percent of the amount owed by the borrower as a result of the default. The institution’s liability shall offset 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.

House subcommittee · named January 13, 2026

• Rep. Taylor R. Collins (R) · taylor.collins@legis.iowa.gov
• Rep. Heather Matson (D) · heather.matson@legis.iowa.gov
• Rep. Jeff Shipley (R) · jeff.shipley@legis.iowa.gov

Lobbying · 1 for, 0 against

For: Iowa Integrated Health Planning and Advisory Council

In plain words

1. January 13, 2026Filed in the House and sent to the Higher Education committee
2. January 13, 2026House subcommittee named: Collins, Matson and Shipley
3. January 21, 2026Subcommittee recommended passing it
4. January 28, 2026Approved by the House committee
5. January 28, 2026Committee vote: 6–4
6. January 30, 2026Approved by the House committee, and given a new number: HF 2241