SF 2932

Introduction - 94th Legislature (2025 - 2026)

Posted on 07/09/2025 02:53 p.m.

A bill for an act
relating to higher education; requiring the creation and use of a standard financial
aid offer form; proposing coding for new law in Minnesota Statutes, chapter 136A.

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

Section 1.

new text begin [136A.0901] STANDARD FINANCIAL AID OFFER FORM FOR HIGHER
EDUCATION INSTITUTIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Citation. new text end

new text begin Sections 136A.0901 to 136A.0905 may be cited as the "College
Financing Literacy Act."
new text end

new text begin Subd. 2. new text end

new text begin Standard format and terminology. new text end

new text begin The commissioner must develop standard
terminology and financial aid offer forms. The commissioner may develop separate financial
aid offer forms for:
new text end

new text begin (1) undergraduate students and graduate students; and
new text end

new text begin (2) first-time students and returning students.
new text end

new text begin Subd. 3. new text end

new text begin Consultation with stakeholders. new text end

new text begin In developing the financial aid offer form,
the commissioner must consult with and consider the recommendations of stakeholders,
including the student loan advocate in the Department of Commerce, representatives of
students, institutions of higher education, financial aid administrators and counselors, school
counselors, and any other relevant stakeholders as determined by the commissioner. The
commissioner must begin consulting with and soliciting recommendations from stakeholders
by September 1, 2025. By September 1, 2026, the commissioner must publish on the
department's website a draft of the form created under subdivision 2 and solicit feedback
from stakeholders regarding the form.
new text end

new text begin Subd. 4. new text end

new text begin Final form. new text end

new text begin The commissioner must publish on the department's website the
final financial aid offer form with sufficient time for institutions to implement use of the
form for the 2027-2028 academic year.
new text end

new text begin Subd. 5. new text end

new text begin Authority to modify. new text end

new text begin The commissioner may update and modify the definitions,
terms, formatting, and design of the financial aid offer form based on changes in laws, in
process, or for purposes of clarity.
new text end

new text begin Subd. 6. new text end

new text begin Use of standard financial aid offer forms and terms. new text end

new text begin (a) Beginning with the
2027-2028 academic year, institutions of higher education that receive state grant aid must:
new text end

new text begin (1) use the financial aid offer form developed under this section in providing official
and unofficial offers, including paper, mobile-optimized offers, or other electronic offers
to all students who are accepted at the institution and apply for aid; and
new text end

new text begin (2) use the standard terminology and definitions developed by the commissioner for all
communications from the institution related to financial aid offers.
new text end

new text begin (b) The Board of Regents of the University of Minnesota is requested to comply with
this section.
new text end

Sec. 2.

new text begin [136A.0902] REQUIRED CONTENTS FOR OFFER FORM.
new text end

new text begin Subdivision 1. new text end

new text begin General. new text end

new text begin The financial aid offer form developed under section 136A.0901
must be a form titled "Financial Aid Offer" which includes the required information under
this section with costs listed first, followed by grants and scholarships clearly separated
with separate headings, and the additional information under section 136A.0903 included
last. The form must be in a consumer-friendly format that is simple to understand and must
allow for each institution to customize the form with the institution's own logo, branding,
or other identifiers.
new text end

new text begin Subd. 2. new text end

new text begin Cost information. new text end

new text begin The financial aid offer form must contain information on
the student's estimated cost of attendance including:
new text end

new text begin (1) total direct costs, including the totals for estimated tuition and fees charged by an
institution, including differential tuition if applicable, college or university-sponsored
housing, and food costs;
new text end

new text begin (2) total estimated other expenses, including estimated housing and food costs for students
who reside off-campus, and for all students, costs for books, materials, supplies,
transportation, and miscellaneous personal expenses, which must include the cost of health
insurance;
new text end

new text begin (3) the academic period covered by the financial aid offer and an explanation that the
financial aid offered may change for academic periods not covered by the aid offer or by
program;
new text end

new text begin (4) whether cost and aid estimates are based on full-time or part-time enrollment;
new text end

new text begin (5) whether tuition and fees cover a set range of credits or are per credit hour; and
new text end

new text begin (6) whether the tuition and fees are estimated based on the previous year or are set for
the academic period indicated in accordance with clause (3).
new text end

new text begin Subd. 3. new text end

new text begin Grants and scholarships. new text end

new text begin The financial aid offer form must include the
aggregate amount of grants and scholarships itemized by source and type that the student
does not have to repay, including grant aid:
new text end

new text begin (1) offered under title IV of the Higher Education Act of 1965, United States Code, title
20, section 1070, et seq.;
new text end

new text begin (2) offered through other federal programs;
new text end

new text begin (3) offered by the institution;
new text end

new text begin (4) offered by the state under section 136A.121; and
new text end

new text begin (5) from an outside source to the student for the academic period, if known, including
a disclosure that the grants and scholarships do not have to be repaid. If institutional aid is
included, the form must also note:
new text end

new text begin (i) the conditions under which the student can expect to receive similar amounts of
financial aid for each academic period the student is enrolled at the institution; and
new text end

new text begin (ii) whether the institutional aid offer may change if grants or scholarships from outside
sources are applied after the student receives the financial aid offer form and how the
institutional aid will change, if applicable.
new text end

new text begin Subd. 4. new text end

new text begin Net price. new text end

new text begin The financial aid offer form must include:
new text end

new text begin (1) the estimated net price that the student, or the student's family on behalf of the student,
is estimated to have to pay for the student to attend the institution for the academic period,
equal to the cost of attendance as described in subdivision 2, clauses (1) and (2), for the
student for the period indicated in subdivision 2, clause (3), minus the amount of grant and
scholarship aid described in subdivision 3 that is included in the financial aid offer form;
and
new text end

new text begin (2) a disclosure that the estimated net price is an estimate of the total expenses for the
year and not equivalent to the amount the student will owe directly to the institution.
new text end

new text begin Subd. 5. new text end

new text begin Loans. new text end

new text begin (a) The financial aid offer form must include:
new text end

new text begin (1) information on loans that are available to the student under part D or E of title IV of
the Higher Education Act of 1965, United States Code, title 20, section 1087a, et seq., and
United States Code, title 20, section 1087aa, et seq., except a Federal Direct PLUS Loan
under part D of that act;
new text end

new text begin (2) information on other loans under this chapter for the academic period covered by
the offer;
new text end

new text begin (3) a disclosure that the loans have to be repaid and a disclosure that the student can
borrow a lesser or, if applicable, greater amount than the recommended loan amount;
new text end

new text begin (4) a disclosure that the interest rates and fees on the loans are set annually and affect
total cost over time and a link to the Department of Education's and the Office of Higher
Education's websites that includes current information on interest rates and fees; and
new text end

new text begin (5) a link to the Department of Education's repayment calculator website for students
with instruction that the website contains customizable estimates of expected repayment
costs under different loan repayment plans.
new text end

new text begin (b) The offer must clearly use the word "loan" to describe the recommended loan amounts
and must clearly label subsidized and unsubsidized loans with a plain language explanation
of the difference between the two.
new text end

new text begin Subd. 6. new text end

new text begin Supplemental information for students with dependents. new text end

new text begin The financial aid
offer form must contain information on resources available to students with dependents
including:
new text end

new text begin (1) the dependent care allowance, including a disclosure that a student with a dependent
child in paid child care may request a dependent care allowance as part of the student's
financial aid calculation, which may result in a higher grant or loan amount; and
new text end

new text begin (2) information on the Minnesota child care grant program provided in section 136A.125
and instructions on how to apply.
new text end

new text begin Subd. 7. new text end

new text begin Process for accepting or declining aid and next steps. new text end

new text begin The financial aid offer
form must include:
new text end

new text begin (1) deadlines and a summary of the process for accepting the financial aid offered in the
financial aid offer form, requesting higher loan amounts if recommended loan amounts
were included, and declining aid offered in the form;
new text end

new text begin (2) information on when and how direct costs to the institution must be paid, including
information on payment plans if available;
new text end

new text begin (3) a disclosure that verification of financial circumstances may require the student to
submit further documentation; and
new text end

new text begin (4) information about where a student or the student's family can seek additional
information regarding the financial aid offered, including contact information for the
institution's financial aid office, the Department of Education's website on financial aid,
and the Office of Higher Education's website.
new text end

Sec. 3.

new text begin [136A.0903] ADDITIONAL REQUIREMENTS FOR THE OFFER FORM.
new text end

new text begin Subdivision 1. new text end

new text begin Repayment resources; private student loans; work study. new text end

new text begin In addition
to the information described in section 136A.0902, the financial aid offer form must, in a
concise format determined by the commissioner, include:
new text end

new text begin (1) at the institution's discretion, additional options and potential resources for paying
the amount listed in section 136A.0902, subdivision 4, such as tuition payment plans;
new text end

new text begin (2) the following information relating to private student loans:
new text end

new text begin (i) a statement that students considering borrowing to cover the cost of attendance should
consider available federal and state student loans prior to applying for private education
loans, including an explanation that federal and state student loans offer generally more
favorable terms and beneficial repayment options than private loans;
new text end

new text begin (ii) the impact of a proposed private education loan on the student's potential eligibility
for other financial assistance, including federal financial assistance under title IV of the
Higher Education Act of 1965, United States Code, title 20, section 1070, et seq.; and
new text end

new text begin (iii) a statement explaining the student's ability to select a private educational lender of
the student's choice; and
new text end

new text begin (3) information on work-study employment opportunities under section 136A.233, and
work-study offered in accordance with part C of title IV of the Higher Education Act of
1965, United States Code, title 20, section 1087-51, et seq., including a disclosure that the
work-study aid offered is subject to the availability of qualified employment opportunities
and is disbursed over time as earned by the student. Work-study employment opportunities
must not be included in the category of financial aid described under section 136A.0902,
subdivision 3.
new text end

new text begin Subd. 2. new text end

new text begin Additional requirements. new text end

new text begin The financial aid offer form must meet the
requirements of this section and section 136A.0902 by:
new text end

new text begin (1) including, in addition to the requirements described in subdivision 1 and section
136A.0902, a concise summary in plain language of:
new text end

new text begin (i) the terms and conditions of financial aid under subdivision 1, clause (3), and section
136A.0902, subdivisions 3 and 5, and a method to provide students with additional
information about the terms and conditions, such as links to the supplementary information;
and
new text end

new text begin (ii) federal, state, or institutional conditions required to receive and renew financial aid
and a method to provide students with additional information about these conditions, such
as links to the supplementary information;
new text end

new text begin (2) clearly distinguishing between aid offered under subdivision 1, clause (3), and section
136A.0902, subdivisions 3 and 5, by including a subtotal for the aid offered and by refraining
from commingling the different types of aid described;
new text end

new text begin (3) using standard terminology and definitions, as determined by the commissioner, and
using plain language where possible;
new text end

new text begin (4) providing additional information on federal student loans, including the types and
amounts for which the student is eligible in an attached document or web page, if an
institution's recommended federal student loan aid offered under section 136A.0902,
subdivision 5, is less than the federal maximum available to the student;
new text end

new text begin (5) including a delivery confirmation for electronic financial aid offer forms, except that
receipt of the financial aid offer form shall not be considered an acceptance or rejection of
aid by the student; and
new text end

new text begin (6) accompanying any reference to private education loans, with respect to dependent
students, with:
new text end

new text begin (i) information about the availability of and terms and conditions associated with Federal
Direct PLUS Loans under section 455 of the Higher Education Act of 1965, United States
Code, title 20, section 1087e, for the student's parents regardless of family income; and
new text end

new text begin (ii) a notification of the student's increased eligibility for unsubsidized Federal student
loans under title IV of the Higher Education Act of 1965, United States Code, title 20,
section 1070, et seq., if the student's parents are rejected under the Federal Direct PLUS
Loan program.
new text end

Sec. 4.

new text begin [136A.0904] SUPPLEMENTAL INFORMATION; REMOVAL OF
INFORMATION.
new text end

new text begin (a) Nothing in sections 136A.0901 to 136A.0903 precludes an institution from
supplementing the financial aid offer form with additional information if the additional
information supplements the financial aid offer form and is not located on the financial aid
offer form and if the information utilizes the same standard terminology developed by the
commissioner under this act.
new text end

new text begin (b) Nothing in sections 136A.0901 to 136A.0903 precludes an institution from deleting
a required item if the student is ineligible for that aid.
new text end

Sec. 5.

new text begin [136A.0905] SUPERSEDING FEDERAL LAW.
new text end

new text begin Sections 136A.0901 to 136A.0904 are null and void upon the effective date of a federal
law or regulation establishing a uniform financial aid offer form and requiring institutions
of higher education to use it.
new text end