Kansas 2025-2026 Regular Session

Kansas Senate Bill SB50

Introduced

1/21/25

Refer

1/22/25

Report Pass

2/11/25

Engrossed

2/19/25

Refer

2/19/25

Report Pass

3/3/25

Enrolled

4/10/25

Passed

4/10/25

Caption

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.

Impact

The enactment of SB50 is expected to have far-reaching implications on how Kansas manages its scholarship and financial aid programs. By centralizing the repayment process and delineating clear terms, the bill aims to reduce administrative burdens and ensure consistency across various educational grants. However, it also raises concerns about the potential financial strain on students who may default on payments due to unforeseen circumstances, placing them at risk of significant financial repercussions. Additionally, aspects of the bill that allow for the collection of fees and costs associated with repayment tracking may add further pressure to borrowers.

Summary

Senate Bill No. 50 introduces significant revisions to student financial aid programs in Kansas by establishing uniform interest rate provisions for scholarships that mandate repayment. Beginning July 1, 2025, the bill stipulates a fixed interest rate of 5% per annum for repayments of state-funded scholarships, grants, or other financial aid. It standardizes the conditions under which students must repay their financial assistance, including clear guidelines on accruing interest and repayment timelines, thereby aiming to streamline the handling of financial obligations.

Sentiment

Support for SB50 appears to stem from advocates who believe that standardizing interest rates and repayment procedures will enhance transparency and fiscal responsibility within education financing. However, critics have raised concerns regarding the implications of imposing a fixed interest rate, which some argue could be burdensome, particularly for low-income students. This polarized sentiment reflects a broader debate on balancing the need for educational funding with the financial realities faced by students and graduates.

Contention

Notable points of contention include the stipulations regarding the timeline for repayment, the imposition of a flat interest rate, and the administrative costs associated with managing repayments. Critics argue that these terms may disproportionately impact financially vulnerable students, suggesting the need for a more flexible approach to repayment obligations. Further, the power granted to the Kansas Board of Regents to turn over delinquent accounts to collection agencies has raised alarm among advocates for student rights, who worry that such measures could lead to aggressive collection practices against individuals struggling to meet their obligations.

Latest SB50 Activity

Companion Bills

No companion bills found.

Previously Filed As

KS HB2644

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.

KS SB438

Establishing the Kansas blueprint for literacy and a literacy advisory committee, directing the board of regents to appoint a director of literacy education, requiring the board of regents and board of education to collaborate on a literacy micro-credential, providing university presidents and deans of education oversight over postsecondary literacy courses, requiring a plan to establish centers of excellence in reading, requiring the board of education to submit annual reports to the legislature on literacy goals; establishing the Kansas education opportunity scholarship to replace the Kansas ethnic minority scholarship, removing limits on Kansas nursing service scholarship awards and modifying the interest rate terms and repayment obligations for such awards, eliminating the requirement to subtract other aid from the state payment for the AO-K program, modifying financial limitations on Kansas hero's scholarship awards and broadening eligibility requirements for such awards.

KS SB378

Establishing the Kansas trade service scholarship act and making appropriations to the state board of regents for fiscal year 2025 to provide grants to community colleges, technical colleges and the Washburn institute of technology for capital improvements, repairs and maintenance of trade program buildings.

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 SB123

Enacting the Kansas adult learner grant act to establish a grant program for adult learners to pursue certain fields of study, enacting the career technical education credential and transition incentive for employment success act to require school districts to pay for the cost of assessments for students to obtain an approved career technical education credential, designating military veterans and spouses or dependents of such veterans who were stationed in Kansas for at least 11 months as residents for purposes of tuition and fees at postsecondary educational institutions and expanding the eligible fields of study under the Kansas promise scholarship act.

KS HB2539

Removing the Kansas residency requirement for eligibility for a Kansas promise scholarship and modifying the definition of part-time student under such program.

KS HB2400

Enacting the Kansas adult learner grant act to facilitate workforce development by providing grants and workforce retention incentive tax credits to adults who pursue baccalaureate degrees from eligible postsecondary educational institutions in certain fields of study.

KS HB2843

Establishing a scholarship task force to study scholarship programs and creating the Kansas academic excellence scholarship program to replace the Kansas ethnic minority scholarship program.

KS HB2132

Expanding the eligible fields of study and establishing a maximum scholarship amount for certain private postsecondary educational institutions in the Kansas promise scholarship act.

KS HB2260

Increasing the number of medical student loan agreements that may be provided by the university of Kansas school of medicine and prohibiting impediments to switching between residency programs.

Similar Bills

KS HB2644

KS HB2359

Establishing the sunflower teacher-student mentor program within certain school districts to encourage students to pursue a teaching career.

KS HB2060

Senate Substitute for HB 2060 by Committee on Education - Authorizing payments from the state safety fund to community colleges for the provision of driver's education, authorizing the provision of tools, supplies and examinations to AO-K career pathway program participants and including high school equivalency credentials in performance-based payments for postsecondary educational institutions.