SF 2528

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/14/2025 10:54 a.m.

A bill for an act
relating to higher education; imposing an in-state residency and work requirement
for recipients of North Star Promise scholarships; amending Minnesota Statutes
2024, section 136A.1465, subdivision 2, by adding a subdivision.

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 below $80,000;

(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; deleted text begin and
deleted text end

(10) is meeting satisfactory academic progress as defined in section 136A.101, subdivision
10 deleted text begin . deleted text end new text begin ; and
new text end

new text begin (11) has signed a contract with the Office of Higher Education to have the applicant's
total scholarship award under this section converted to a student loan if the applicant fails
to fulfill the residency employment requirement in subdivision 2a.
new text end

Sec. 2.

Minnesota Statutes 2024, section 136A.1465, is amended by adding a subdivision
to read:

new text begin Subd. 2a. new text end

new text begin Minnesota residency and employment requirement. new text end

new text begin (a) To receive a
scholarship under this section, an eligible student must agree to reside and be employed in
Minnesota for a three-year term beginning within six months of completion of the degree
or credential program for which the scholarship was awarded. If a scholarship recipient fails
to meet this residency and employment requirement, the commissioner must convert the
recipient's total scholarship award to a student loan and collect from the recipient the total
amount paid plus interest at a rate established according to section 270C.40.
new text end

new text begin (b) The commissioner may waive the residency and employment requirement for a
scholarship recipient if, within six years of the initial scholarship award, the scholarship
recipient:
new text end

new text begin (1) has not completed the degree or credential program for which the scholarship was
awarded;
new text end

new text begin (2) has not earned a baccalaureate degree; and
new text end

new text begin (3) is no longer enrolled in any postsecondary institution.
new text end

new text begin (c) The commissioner may defer the residency and employment requirement:
new text end

new text begin (1) to allow a scholarship recipient to attend a postgraduate education program, provided
that the recipient is enrolled on at least a half-time basis in that program;
new text end

new text begin (2) to perform full-time volunteer service through Peace Corps, AmeriCorps, or a similar
program; or
new text end

new text begin (3) for circumstances involving extreme hardship.
new text end

new text begin (d) A scholarship recipient who becomes ineligible for a scholarship under this section,
or who has a scholarship terminated under subdivision 6, remains subject to the residency
and employment requirement and must complete the requirement within six years of the
initial scholarship award, unless the recipient qualifies for waiver or deferment under
paragraph (b) or (c).
new text end

new text begin (e) An eligible student who receives scholarship awards for more than one degree or
credential program is only required to meet the residency and employment requirement
once. Any obligation to comply with this subdivision cancels upon the death or permanent
and total disability of the scholarship recipient.
new text end

Sec. 3. new text begin EFFECTIVE DATE.
new text end

new text begin This act is effective the day following final enactment and applies to scholarship awards
beginning in the fall term of the 2026-2027 academic year.
new text end