(a) Within the limitations of appropriations therefor, the state board of regents may authorize any state educational institution to award grants to students in the form of fellowships, scholarships and waivers of fees and tuition. With the approval of the board of regents, a state educational institution shall impose upon such awards such standards, conditions and requirements as shall be designed to foster the growth, distinction and stability of the state educational institution and the quality of its educational programs and pursuits.

(b) Subject to the provisions of appropriation acts and in accordance with policies adopted by the state board of regents, the chancellor or president of each state educational institution, in the discretion of the chancellor or president, may grant a tuition and fee waiver to one or more graduate students of the state educational institution who is awarded a national fellowship and who is not determined to be a Kansas resident under Kan. Stat. Ann. § 76-719, and amendments thereto, and any policies adopted thereunder. Each such tuition and fee waiver shall be in addition to any other financial assistance, grants or tuition or fee waivers and shall be in an amount equal to the difference between the aggregate amount of resident tuition and fees and nonresident tuition and fees for the course of study such graduate student has enrolled in at the state educational institution.