This bill focuses on reforming postsecondary education financing in Kansas, particularly concerning scholarship programs that require repayment. It establishes a uniform interest rate of 5% per annum for repayment obligations related to scholarships, grants, or other financial aid programs, effective July 1, 2025. The bill specifies that interest will not accrue until repayment begins and applies to financial aid distributed before this date. It also grants the state board of regents the authority to recover costs associated with collecting repayments and to charge fees for administering financial assistance programs. Additionally, the bill modifies existing scholarship programs, replacing previous interest rates tied to federal PLUS loans with the new uniform rate and reducing the number of available grants and required audits under the low-income family postsecondary savings accounts incentive program.

Furthermore, the bill amends several sections of the Kansas Statutes Annotated related to various scholarship and fellowship programs, allowing the state board of regents to turn over repayment accounts to designated loan servicers or collection agencies. It establishes new requirements for scholarship recipients, including repayment obligations if they fail to meet agreement conditions, with installment payments commencing six months after non-compliance. The bill also outlines the low-income family postsecondary savings accounts incentive program, which includes state-matching contributions for savings accounts aimed at funding postsecondary education. Overall, the amendments aim to streamline the repayment process, clarify responsibilities for scholarship recipients, and ensure effective management of financial assistance programs.

Statutes affected:
As introduced: 75-4215, 74-3260, 74-3267, 74-3272, 74-3295, 74-32
As Amended by House Committee: 75-4215, 74-3260, 74-3267, 74-3272, 74-3295, 74-32
Enrolled: 75-4215, 74-3260, 74-3267, 74-3272, 74-3295, 74-32, 75-650