Student Loans and Financial Aid

Current National Debt Statistics and Policy

As of 2024, the national student loan debt is $1.7 trillion and is now the second-highest consumer debt category. Many factors contribute to this high figure, such as interest rates, but experts identify the rising cost of college tuition to be the primary cause. According to data from Education Data initiative:

• The average student loan debt balance is $37,338;
• Federal interest rates range from 5.50 percent to 8.05 percent depending on the type of loan; and
• The average student borrower takes 20 years to pay off loan debt.

Federal Loan Repayment Plans

Borrowers can choose from several types of fixed payment plans and income-driven repayment plans. Income-driven repayment (IDR) plans are the most popular and offer four different paths toward repayment on a monthly basis, dependent on income and family size. Borrowers can also apply for Public Service Loan Forgiveness (PSLF) if they work at a nonprofit or United States-based government organization.

In August 2023, the Biden Administration announced a new program called the Saving on a Valuable Education (SAVE) plan, which replaced the Revised Pay As You Earn (REPAYE) plan. Under this IDR plan:

• Borrowers’ monthly payments will be limited to:
  • 5 percent of their discretionary income for undergraduate loans;
  • A weighted average between 5 and 10 percent for those with both undergraduate and graduate loans; or
  • 10 percent of their discretionary income for those with only graduate loans;
• Interest does not accrue if the borrower makes their full monthly payment; and
• More loan forgiveness is available:
  • Loans under $12,000 will be forgiven after 10 years; and
  • Outstanding balances will be forgiven at the end of the pay period.

According to the U.S. Department of Education, 1,270 borrowers in Kansas have received loan forgiveness under the SAVE plan, totaling $9.9 million. Note: The information regarding the SAVE plan is current as of this article’s publication, but it is subject to change.

Kansas Assistance for Students

On average, a Kansas student’s loan debt is $32,158, which is 13.9 percent lower than the national average. This equals $12.5 billion debt among state residents. Additionally, the cost of college in Kansas is 10.57 percent less than the national average for cost of attendance at a four-year institution.

Service Scholarships

The State Board of Regents (KBOR) offers several scholarships and other financial aid programs that provide assistance to students who go on to serve in the State of Kansas. If service is unfulfilled while receiving assistance, students are subject to repayment of the scholarship plus accrued interest. The University of Kansas Medical Center (KUMC) has similar service and loan repayment programs focusing on bridging the gap in rural communities. Below is a limited list of scholarships offered by the two entities:

• Kansas Nursing Service Scholarship (KBOR);
• Kansas Osteopathic Scholarship (KBOR);
• Kansas Teacher Service Scholarship (KBOR);
• Rural Health Bridging (KUMC);
• OBGYN Medical Student Loans (KUMC); and
• OBGYN Medical Residency Bridging Loans (KUMC).

Recent Legislative Impacts on Scholarships

During the 2024 Legislative Session, the House Committee on Higher Education Budget and the House Committee on Appropriations made significant changes to the budget for KBOR and state universities. These legislative budget adjustments have an impact on financial aid and service scholarships. Specifically, the 2024 Legislature:

• Added $2.2 million to the Kansas Osteopathic Scholarship;
• Added $1.1 million to the Kansas Nursing Service Scholarship;
• Added $1.0 million to the Hero’s Scholarship; and
• Deleted $14.2 million for Needs Based Aid.

The 2024 Legislature also made non-budgetary changes to scholarships. SB 438 expanded access to various demographics, including expanding the number of eligible recipients for the Hero’s Scholarship and removing the limit on the number of nursing scholarships. SB 19 created a new service scholarship called the EMERGE Program, which provides financial assistance to 100 National Guard members seeking an advanced degree.

Changes to these scholarships are updated on KBOR’s website, along with more information regarding specific service requirements.