The bill introduces significant changes to the interest rate structure for scholarship programs with repayment obligations, effective July 1, 2025. It replaces the previous fixed interest rate of 5% per annum with a variable rate based on the federal PLUS loan rate at the time of entering the repayment agreement. Notably, no interest will accrue before the repayment period begins, and these new provisions will apply retroactively to scholarships or grants awarded prior to the effective date. Additionally, individuals will not receive refunds for any payments made before July 1, 2025. The bill also empowers the state board of regents to recover costs related to collecting repayments, including court and attorney fees, and to charge fees for processing financial assistance applications.

Moreover, the bill amends various sections of Kansas statutes concerning scholarship and fellowship programs, streamlining the repayment process and clarifying the obligations of scholarship recipients. It specifies that interest on repayments will now be calculated based on a newly established rate rather than a fixed percentage, and it allows the board to delegate the collection of repayment accounts to loan servicers or collection agencies. The bill also outlines the conditions under which interest accrues for the Kansas adult learner grant program, stating that it will begin when a student is deemed out of compliance with their agreement. The state board of regents is designated as the sole entity responsible for collecting repayments, with provisions for institutions to assist in providing necessary student information. Several existing laws are repealed to enhance efficiency in managing these educational programs.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