The bill establishes a uniform interest rate of 5% per annum for repayment obligations associated with scholarship programs, effective July 1, 2025. It stipulates that interest will not accrue until the individual is required to begin repayment, as determined by the state board of regents. The bill also allows the state board to recover reasonable collection costs and charge fees for administering financial assistance programs. Importantly, it mandates that eligible students must enter into agreements with the state board of regents instead of their educational institutions to receive grants under the adult learner grant act.

Additionally, the bill amends existing statutes related to various scholarship programs, replacing previous interest rate calculations based on the federal PLUS program with the new uniform interest rate. It clarifies the repayment process, including conditions for loan forgiveness based on residency and employment in Kansas, and outlines the responsibilities of the state board of regents in overseeing compliance and repayment. The bill also allows for the use of loan servicers or collection agencies to streamline the collection process and emphasizes the importance of timely reporting from postsecondary institutions to assist in compliance verification. Several existing statutes related to the grant program are repealed, and the act will take effect upon publication.

Statutes affected:
As introduced: 75-4215, 74-3260, 74-3267, 74-3272, 74-3295, 74-32