HF 2571

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/20/2025 03:02 p.m.

A bill for an act
relating to higher education; modifying the income requirements and award formula
for the North Star Promise scholarship program; amending Minnesota Statutes
2024, section 136A.1465, subdivisions 2, 3, 7.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 136A.1465, subdivision 2, is amended to
read:

Subd. 2.

Conditions for eligibility.

A scholarship may be awarded to an eligible student
who:

(1) has completed the Free Application for Federal Student Aid (FAFSA) or the state
aid application;

(2) has a family adjusted gross income deleted text begin below $80,000 deleted text end new text begin less than or equal to $150,000 new text end ;

(3) is a graduate of a secondary school or its equivalent, or is 17 years of age or over
and has met all requirements for admission as a student to an eligible college or university;

(4) has not earned a baccalaureate degree at the time the scholarship is awarded;

(5) is enrolled in at least one credit per fall, spring, or summer semester;

(6) is enrolled in a program or course of study that applies to a degree, diploma, or
certificate;

(7) is not in default, as defined by the office, of any federal or state student educational
loan;

(8) is not more than 30 days in arrears in court-ordered child support that is collected or
enforced by the public authority responsible for child support enforcement or, if the applicant
is more than 30 days in arrears in court-ordered child support that is collected or enforced
by the public authority responsible for child support enforcement, but is complying with a
written payment agreement under section 518A.69 or order for arrearages;

(9) has not been convicted of or pled nolo contendere or guilty to a crime involving
fraud in obtaining federal Title IV funds within the meaning of Code of Federal Regulations,
subtitle B, chapter VI, part 668, subpart C; and

(10) is meeting satisfactory academic progress as defined in section 136A.101, subdivision
10.

Sec. 2.

Minnesota Statutes 2024, section 136A.1465, subdivision 3, is amended to read:

Subd. 3.

Scholarship.

(a) Beginning in the fall term of the 2024-2025 academic year,
scholarships shall be awarded to eligible students in an amount not to exceed deleted text begin 100 percent
of deleted text end new text begin :
new text end

new text begin (1) the amount of the eligible student's new text end tuition and fees after gift aid is deducted deleted text begin . deleted text end new text begin ;
new text end

new text begin (2) multiplied by:
new text end

new text begin (i) 100 percent if the student reports a family adjusted gross income less than $100,000;
new text end

new text begin (ii) 75 percent if the student reports a family adjusted gross income greater than or equal
to $100,000 and less than or equal to $125,000;
new text end

new text begin (iii) 50 percent if the student reports a family adjusted gross income greater than $125,000
and less than or equal to $150,000; or
new text end

new text begin (iv) zero percent if the student reports a family adjusted gross income greater than
$150,000.
new text end

(b) For the 2024-2025, 2025-2026, and 2026-2027 academic years, if funds remain after
scholarships are awarded under paragraph (a), supplemental grants shall be awarded to
eligible students in an amount up to 50 percent of the amount of a Pell grant the student
would receive based on household size, family adjusted gross income, and results of the
federal needs analysis, not to exceed the student's recognized cost of attendance. The
commissioner may adjust the supplemental grant amount based on the availability of funds.

Sec. 3.

Minnesota Statutes 2024, section 136A.1465, subdivision 7, is amended to read:

Subd. 7.

Institutions administering certain financial aid programs.

Public
postsecondary institutions and Tribal colleges administering institutional financial aid
programs for students with a family adjusted gross income deleted text begin below $80,000 deleted text end new text begin less than or equal
to $150,000 new text end that provide student awards for up to or more than 100 percent of tuition, 100
percent of tuition and fees, or 100 percent of the cost of attendance, shall provide the Office
of Higher Education with student level data on the recipients of those awards and the program
funds awarded per term. The information under this subdivision is necessary for the office
to accurately complete reporting requirements under section 136A.121, subdivision 19.