KansasSB 502025–2026 Regular SessionSenateWALLET

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.

Sponsored By: Committee on Education

Signed by Governor

house committee on educationsenate committee on education

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 0 benefits, 4 costs, 3 mixed.

Adult learner grants require signed commitments

Students must sign an agreement with the Board of Regents before receiving a Kansas Adult Learner Grant. They must complete their program and meet the two-year Kansas residence and work requirement afterward. Kansas tax withholding or estimated tax payments document the work requirement. A permitted alternative involves completing further Kansas postsecondary study, followed by two years living and working in Kansas. Failure to meet the agreement triggers repayment plus interest, subject to limited exceptions and good-cause postponements.

Students must repay aid paid for them

Recipients who break covered aid agreements owe money paid on their behalf, not just money they received directly, plus interest. Covered aid includes military, medical, nursing, teacher, fellowship, workforce, Kansas Promise, and adult learner programs. Most installments start six months after interest begins, unless a program sets another schedule. ROTC installments must each cover at least one-fifth of the total, start within 30 days, and finish within five years. Medical school repayments generally start within six months of graduation or residency termination; optometry installments start six months after the triggering event. In many programs, an installment overdue by 91 days can make the entire unpaid balance due immediately. The same statutory interest rate applies through collection agencies; some programs allow waivers after recipients begin qualifying Kansas practice.

Kansas standardizes interest on student aid repayments

Beginning July 1, 2025, covered Kansas student aid repayments carry 5% yearly interest when the program requires interest. A lower rate set when the aid was received remains protected. Interest cannot start before repayment is required; the Board of Regents sets the applicable accrual date. The rule also covers aid paid before July 1, 2025, but does not authorize refunds of earlier payments. The law does not impose interest on amounts owed between the state and institutions or sponsors.

Limited college savings matches for low-income families

For 2025–2027, approved Kansas account owners receive a dollar-for-dollar college savings match, up to $600 per account each year. They must contribute at least $100 that year and have approval for that year. Eligible Kansas households need prior-tax-year income above zero and no more than 200% of the federal poverty level. First-come approvals are limited to 250 per congressional district and 1,000 statewide yearly; unused district slots can be reassigned. Subject to appropriation limits, state matching money moves to participant accounts by January 31 for the prior year's contributions.

Savings withdrawals face audits and repayment

The treasurer need not approve matching-fund withdrawals beforehand, but must audit at least 10 withdrawals from each year, 2025–2027. Selected participants must submit requested documents by the audit deadline; missing it conclusively makes the withdrawal nonqualified. A nonqualified withdrawal requires repayment of the matching portion on terms set by the treasurer. Amounts unpaid after the payment deadline accrue 5% yearly interest, compounded monthly; the state can collect through payment offsets. The treasurer must report program figures and audit results to the governor and legislature by January 31 in 2026, 2027, and 2028.

Kansas aid users face possible added fees

The Board of Regents can recover reasonable collection costs, including court costs, attorney fees, and collection agency fees. Its chief executive can also charge application-processing and administration fees to cover direct and indirect program costs. The law sets no specific fee amounts; administration fees go into the Financial Aid Services Fee Fund. The Regents can use loan servicers or collection agencies and are the sole collectors for Promise and Adult Learner awards made on or after July 1, 2021. Schools must provide annual last-known contact information until completion and report completion or exhausted benefits, but need not contract to track repayment.

New savings match applications end in 2028

Beginning January 1, 2028, the Kansas treasurer cannot accept or approve applications for the low-income college savings matching program. This closes access for new applicants. The provision does not itself cancel previously approved applications or existing account matches.

Sponsors & Cosponsors

Sponsor

  • Committee on Education

    Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 640 • No: 8

Senate vote • 4/23/2026

Yea: 119 Nay: 3

Yes: 119 • No: 3

Senate vote • 4/23/2026

Yea: 39 Nay: 1

Yes: 39 • No: 1

Senate vote • 4/23/2026

Yea: 122 Nay: 0

Yes: 122 • No: 0

Senate vote • 4/23/2026

Yea: 40 Nay: 0

Yes: 40 • No: 0

Senate vote • 3/27/2025

Conference Committee Report was adopted

Yes: 40 • No: 0

House vote • 3/26/2025

Conference Committee Report was adopted

Yes: 122 • No: 0

House vote • 3/18/2025

Final Action - Passed as amended

Yes: 119 • No: 3

Senate vote • 2/19/2025

Final Action - Passed

Yes: 39 • No: 1

Actions Timeline

  1. Enrolled and presented to Governor on Friday, April 4, 2025

    4/10/2025Senate
  2. Approved by Governor on Tuesday, April 8, 2025

    4/8/2025Senate
  3. Conference Committee Report was adopted; Yea 40, Nay 0

    3/27/2025Senate
  4. Conference committee report now available

    3/26/2025House
  5. Conference Committee Report was adopted; Yea 122, Nay 0, Absent 3

    3/26/2025House
  6. Motion to accede adopted; Rep. Susan Estes, Rep. Kyle McNorton and Rep. Jerry Stogsdill appointed as conferees

    3/19/2025House
  7. Nonconcurred with amendments; Conference Committee requested; appointed Sen. Renee Erickson, Sen. Adam Thomas and Sen. Dinah Sykes

    3/18/2025Senate
  8. Committee of the Whole - Committee Report be adopted

    3/17/2025House
  9. Committee of the Whole - Be passed as amended

    3/17/2025House
  10. Final Action - Passed as amended; Yea 119, Nay 3, Absent 3

    3/17/2025House
  11. Committee Report recommending bill be passed as amended by House Committee on Education

    3/3/2025House
  12. Hearing: Tuesday, February 25, 2025, 1:30 PM — Room 218-N

    2/25/2025House
  13. Final Action - Passed; Yea 39, Nay 1

    2/19/2025Senate
  14. Received and Introduced

    2/19/2025House
  15. Referred to House Committee on Education

    2/19/2025House
  16. Committee of the Whole - Be passed

    2/18/2025Senate
  17. Committee Report recommending bill be passed by Senate Committee on Education

    2/11/2025Senate
  18. Hearing: Tuesday, February 4, 2025, 1:30 PM — Room 144-S

    2/4/2025Senate
  19. Referred to Senate Committee on Education

    1/22/2025Senate
  20. Introduced

    1/21/2025Senate

Bill Text

  • As Amended by House Committee on Education

  • As Introduced

  • Enrolled

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