HF2061

Purpose of the Bill

The bill aims to provide financial support for student loan debt counseling services in Minnesota. It seeks to allocate funds specifically for this purpose to help borrowers better manage their student loan debt.

Main Provisions

• Appropriation of Funds: The bill appropriates $250,000 for fiscal year 2026 and an additional $250,000 for fiscal year 2027 from the state’s general fund.
• Use of Funds: The allocated money will be directed to the commissioner of the Office of Higher Education. These funds are intended to support programs that offer counseling for individuals dealing with student loan debt.
• Administration: The Office of Higher Education is allowed to use up to three percent of the appropriated funds to cover administrative costs related to the student loan debt counseling program.

Significant Changes

The bill provides new funding specifically earmarked for student loan debt counseling in Minnesota, which represents a financial initiative to address the growing concern of student loan debt among graduates. This is not a change to an existing law but an allocation of new resources.

Relevant Terms

student loan debt, debt counseling, higher education, appropriation, financial support, Office of Higher Education, administrative costs, Minnesota statutes.