SF 4667

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/07/2024 04:49pm

A bill for an act
relating to higher education; requiring the Office of Higher Education to develop
a standardized financial aid letter; 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.1285] FINANCIAL AID AWARD LETTER.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The Office of Higher Education shall develop and
implement a standardized financial aid award letter format to be used by all colleges and
universities eligible to receive state financial aid. The award letter must be consumer friendly,
simple, and easy to understand.
new text end

new text begin Subd. 2. new text end

new text begin Content. new text end

new text begin At a minimum, the award letter must include:
new text end

new text begin (1) information on the student's estimated cost of attendance with a disclaimer that actual
costs depend on decisions made by the student. The estimate must be based on the most
current costs of tuition and fees, room and board, books and supplies, transportation, and
miscellaneous personal expenses for the period covered by the financial aid award letter;
new text end

new text begin (2) the amount of financial aid for the period covered by the award letter that the student
does not have to repay, such as scholarships and grant aid;
new text end

new text begin (3) the estimated net cost of attendance that the student is expected to pay to attend the
institution for the period covered by the award letter, with a disclaimer that actual costs
depend on decisions made by the student. The estimated net cost of attendance is equal to
the cost of attendance described in clause (1), minus the amount of grant aid described in
clause (2);
new text end

new text begin (4) work study assistance, including a disclosure that the aid must be earned by the
student and a disclosure that the assistance offered is subject to the availability of employment
opportunities;
new text end

new text begin (5) the types of loans and amounts of loans offered to the student, a disclosure that such
loans must be repaid, a disclosure that the student can borrow less than the recommended
loan amount, interest rates for each loan, the expected monthly payment and total expected
repayment amount assuming a ten-year repayment plan and normal time to completion of
the student's degree, and a disclosure that the student may be eligible for extended or
income-driven repayment plans that allow the borrower to make lower monthly payments
but that longer repayment plans may result in the student paying more money over the life
of the loans;
new text end

new text begin (6) 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
and the United States Department of Education's website on financial aid;
new text end

new text begin (7) the deadline and summary for accepting the financial aid offered; and
new text end

new text begin (8) the academic period covered by the financial aid offer form and a clear indication
whether the aid offered is based on full-time or part-time enrollment.
new text end

new text begin Subd. 3. new text end

new text begin Implementation. new text end

new text begin The Office of Higher Education must develop and implement
the standardized award letter by the start of academic year 2025-2026.
new text end