Each state educational institution may, with the approval of the state board of regents, (a) apply for, receive, administer and expend any funds now or hereafter made available under federal law for the purpose of making or supporting loans to students; (b) establish such fiscal procedures for the administration of such funds as may be required or authorized by federal law or regulation, including the establishment of revolving funds; and (c) enter into such agreements with the federal government or any of its agencies as may be required in order to make such federal funds available. Such agreements may include the borrowing of money from the federal government or any of its agencies. Repayment of any moneys so borrowed shall be made solely from funds derived from repayment of loans made to students or from any private gift or grant, and any note, agreement or contract given in connection with such loan shall not be an indebtedness of the state of Kansas, the board of regents or the individual members thereof, or of any officer or employee of the state of Kansas.