Kansas 2023-2024 Regular Session

Kansas House Bill HB2644

Introduced
1/31/24  
Refer
1/31/24  

Caption

Establishing uniform interest rate provisions for service scholarships administered by the Kansas board of regents that have repayment obligations as a part of the terms and conditions of such scholarship and authorizing the Kansas board of regents to recover the costs of collecting such repayment obligations and charge fees to cover the costs of administering such scholarship programs.

Impact

The potential impact of HB2644 on state law includes modifying the existing repayment structures and rates tied to several scholarship and grant programs. By standardizing the interest rate and allowing the Board of Regents to charge administrative fees, the bill aims to simplify financial management for both the state and borrowers. Critics argue that this could make repayment obligations more complex for students who may not be fully aware of these new specifications, thus raising concerns about access to education funding and financial burden post-graduation.

Summary

House Bill 2644 proposes amendments to the existing regulations concerning scholarship programs administered by the Kansas Board of Regents. The bill seeks to establish a uniform interest rate of 5% per annum on repayment obligations for various scholarship, grant, and financial aid programs. It outlines conditions under which these repayment obligations should be collected, including the authorization for the Board of Regents to recoup collection costs from borrowers. This aims to streamline the administration of student financial aid and ensure fairness in repayment conditions across different programs.

Contention

Notable points of contention surrounding the bill center on the implications for students receiving financial aid. Some stakeholders express concern that the new uniform interest rates may disproportionately affect low-income students who struggle to repay their debts. Furthermore, the inclusion of fees for administration adds an additional layer of financial obligation. Opponents of the bill are wary that while it seeks to streamline the process, it could unintentionally disadvantage those who rely on these scholarships for education access.

Companion Bills

No companion bills found.

Similar Bills

KS SB50

Establishing uniform interest rate provisions for service scholarship programs administered by the Kansas board of regents, authorizing the board of regents to recover the costs of collecting such repayment and charge fees for administration costs, requiring eligible students to enter into agreements with the board of regents as a condition to receiving a grant under the adult learner grant act and sunsetting the low-income family postsecondary savings accounts incentive program in 2028 and reducing the number of audits required for such program.

KS HB2645

Senate Substitute for HB2645 by Committee on Education - Removing limits on the number and amount of awards under the nursing service scholarship program, modifying the interest rate terms for repayment obligations under such program, abolishing the nursing service scholarship review committee and modifying the financial limitations on awards under the Kansas hero's scholarship act and broadening the eligibility requirements for such awards.

KS SB438

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