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 the individual is required to begin repayment 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 laws for various scholarship programs, replacing previous interest rate provisions with the new 5% rate and detailing the repayment process, including timelines and consequences for overdue payments.

Moreover, the bill amends several sections of the Kansas Statutes Annotated related to scholarship and fellowship programs, allowing the state board of regents to turn over repayment accounts to designated loan servicers or collection agencies. It introduces specific conditions for scholarship recipients, such as the requirement to live and work in Kansas for a specified period post-graduation to qualify for loan forgiveness. The bill also establishes a matching grant program for low-income families setting up postsecondary savings accounts, with limits on applications and contributions. Several sections of existing law are repealed, and the act will take effect upon publication in the Kansas register.

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