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74-32,312. Interest rate on repayment obligations that arises under certain service scholarship programs. (a) On and after July 1, 2025, for any repayment obligation owed by an individual, the applicable interest rate shall be 5% per annum if such repayment obligation:

(1) Arises under any scholarship, grant or other student financial aid program established in article 32 of chapter 74 of the Kansas Statutes Annotated, and amendments thereto, or under any agreement entered into pursuant thereto; and

(2) requires the payment of interest pursuant to the terms of the statute or agreement under which the individual received the scholarship, grant or other student financial aid.

(b) No interest for such scholarship, grant, or other student financial aid shall begin to accrue earlier than the date that the individual becomes required to repay such scholarship, grant or other student financial aid to the state board of regents, as determined by the state board of regents.

(c) The interest rate established in subsection (a) and the accrual date determined under subsection (b) shall apply to repayment obligations arising in relation to any scholarship, grant or other student financial aid distributed prior to July 1, 2025, pursuant to any scholarship, grant or other student financial aid program established in article 32 of chapter 74 of the Kansas Statutes Annotated, and amendments thereto.

(d) Nothing in this section shall be construed to impose an interest rate:

(1) In excess of the interest rate specified in either the applicable statute at the time an individual received the scholarship, grant or other student financial aid relating to the repayment obligation or the agreement between the individual and an educational institution, a sponsor or the state board of regents; or

(2) upon amounts owed to the state board of regents by educational institutions, sponsors or amounts owed to educational institutions or sponsors by the state board of regents.

(e) No individual shall be entitled to a refund for amounts paid to the state board of regents before July 1, 2025.

History: L. 2025, ch. 86, § 1; April 24.