Providing for partial liability of regents institutions for defaulted educational loans

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 25 percent of the amount owed by the borrower as a result of the default. The institution’s liability shall offset 25 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.