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Senate committee hears bill to standardize repayment terms across Regents service scholarships
Summary
Senate Bill 50 would set a uniform 5% annual interest rate, fix accrual dates, allow the Board of Regents to recover collection costs and permit administrative charges for 11 state service scholarship programs; committee heard proponent testimony and asked the Regents for recipient and balance data.
Senate Bill 50, which would create uniform repayment terms for service scholarships administered by the Kansas Board of Regents, was the subject of a Senate Education Committee hearing where sponsors and the Board’s staff outlined the bill’s effects and answered committee questions.
The bill would establish an annual 5% interest rate on repayment obligations for service scholarships, set the accrual date as the date the obligation began as determined by the State Board of Regents, allow the Board to recover reasonable collection costs, and authorize the Board’s chief executive to set administrative charges and fees for administering those scholarships. The measure also makes conforming changes across the various statutory scholarship programs and clarifies that adult learner grant agreements are with the State Board of Regents rather than the postsecondary institution. The bill would take effect July 1, 2025, upon publication in the statute book.
Tamara Lawrence, advisor to the committee from the Revisor’s Office, summarized the bill and its sections, saying the bill “would establish an annual uniform interest rate of 5% on any repayment obligation stemming from a service scholarship program” and would set the accrual date as determined by the State Board of Regents.
Elaine Frisbie, vice president for finance and administration at the Board of Regents, testified for the Board and described the intent as reducing “the financial destructiveness” of some current repayment terms. Frisbie said the Regents requested similar language last year and that, under current statutes, some recipients can face interest rates “over 14%” compounded to the date of the original award in certain programs. She told the committee the bill would simplify and unify repayment terms so students better understand obligations when they sign service agreements.
Committee members asked several operational and data questions. Senator Sykes asked how many students receive these scholarships and how many are in repayment; Frisbie said the Board has that information but would need to provide it to the committee. The chair and senators also asked about the Financial Aid Services fee fund, which Frisbie described as a pass-through account used to pay vendors who track students in repayment; she said she would report the fund balance to the committee.
Senator Storns pressed on when repayment accrues. Frisbie responded that repayment ordinarily does not take effect until a recipient exits required service, unless the program’s promissory note requires repayment earlier for failing to complete a program or meet the promissory conditions.
No formal committee action or vote was recorded during the hearing. The committee closed the hearing on SB 50 and proceeded to a separate hearing on Senate Bill 44.
Votes at this hearing: none recorded.
