SESSION OF 2024
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2644
As Recommended by House Committee on
Education
Brief*
HB 2644 would establish uniform interest rates,
repayment schedules, and fees for all scholarships, grants, or
other financial aid established in law (KSA Chapter 74, Article
32) under the authority of the Kansas Board of Regents
(KBOR).
Uniform Interest and Accrual
The bill would establish a uniform rate of 5.0 percent per
annum for all repayments arising from the following
conditions:
●Any scholarship, grant, or other student financial
aid program established in law and under the
authority of KBOR or under any agreement entered
into pursuant to any such scholarship, grant, or
other student financial aid program; and
●The scholarship, grant, or student financial aid
program requires the payment of interest either in
the term of the program or under the agreement
entered into by the recipient.
The bill would prohibit interest from accruing prior to the
date at which the award recipient becomes obliged to repay
the scholarship, grant, or student financial aid as determined
by KBOR. The bill would also retroactively apply to all
____________________
*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org scholarship, grant, and other student financial aid rewards
made prior to July 1, 2024, with the exception of the following
circumstances:
●Awards with an interest rate less than 5.0 percent
at the time of an individual’s receipt; or
●Awards with an interest rate specified in any
agreement between the individual recipient and a
state education institution, sponsor, or KBOR.
The bill specifies that the change in interest rate and
accrual date does not grant any right, claim, or entitlement of
an individual to a refund of payments made at an interest rate
in excess of 5.0 percent.
KBOR Recovery and Application Fees
The bill would authorize KBOR to recover reasonable
costs for collection of scholarship, grant, and other student
financial aid collections, which would include, but not be
limited to, court costs, attorney fees, and collection agency
fees.
The bill would also authorize KBOR to charge fees for
processing applications and generally administering student
financial assistance programs. The fees would be set by the
Chief Executive Officer of KBOR and be required to recover
all or part of the direct and indirect costs of administering the
programs. Any fees charged would be deposited in the state
treasury and credited to the Financial Aid Services Fee Fund
of KBOR.
Conforming Language
The bill contains changes to existing law to conform
each scholarship, grant, or other student financial aid that is
subject to the bill with the new universal interest rate and
accrual date.
2- 2644 Background
The bill was introduced by the House Committee on
Education at the request of a representative of KBOR.
House Committee on Education
In the House Committee hearing, proponent testimony
was provided by a representative KBOR. The conferee
generally stated that the changes would allow for easier
administration of the various programs by KBOR and that it
would lead to a better experience for students receiving the
scholarships, grants, and other student financial assistance.
Written-only proponent testimony was provided by a
representative of the Kansas Independent College
Association.
No other testimony was provided.
Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, KBOR states that the bill would have a
negligible fiscal effect on agency operations.
Any fiscal effect associated with enactment of the bill is
not reflected in The FY 2025 Governor’s Budget Report.
Education; Kansas Board of Regents; postsecondary; scholarships; interest rate
3- 2644