79-8,151.

Student loan repayment assistance; how paid; third-party vendor; contract authorized.

(1) For applications approved prior to April 17, 2024, student loan repayment assistance awarded under the program may be applied to the principal amount of the loan and to interest that accrues. The repayment assistance shall be paid in one of the following three ways as directed by the applicant on his or her application:

(a) Directly to the lender or loan servicer that holds the outstanding balance of the student loan in one lump-sum payment;

(b) Directly to the lender or loan servicer that holds the outstanding balance of the student loan in monthly payments. Such monthly payments shall be made:

(i) In twelve equal payments; or

(ii) If requested by the applicant, in smaller amounts over a longer period of time, not to exceed twenty-four months. In such case, payments shall be equal for the first twelve months or until such time as the applicant's payment amount is recalculated by the lender or loan servicer and then, if adjusted, shall be equal for the next twelve-month period. Any unpaid funds at the end of twenty-four months may be requested to be paid in a lump-sum payment to the lender or loan servicer or shall be considered forfeited by the applicant. Applicants who are awarded repayment assistance in more than one year may have their awards divided across no more than one hundred twenty monthly payments under the program; or

(c) Directly to the applicant for the purpose of making the applicant's student loan payments. This subdivision shall only be available if the applicant is not in default on any student loan at the time of application. Any individual receiving repayment assistance under this subdivision must provide documentation that the full award was used for student loan payments when (i) applying for repayment assistance under the program in subsequent years and (ii) claiming an adjustment to federal adjusted gross income pursuant to section 77-2716. Such documentation shall be provided using a form prescribed by the department.

(2) The department may contract with a third-party vendor to administer the repayment assistance provided pursuant to the program.