Minneslate Logo

HF2241 (Legislative Session 94 (2025-2026))

In-state residency and work requirement for recipients of North Star Promise scholarships imposed.

Related bill: SF2528

AI Generated Summary

Purpose of the Bill

The bill aims to modify the eligibility criteria for the North Star Promise scholarships in Minnesota by adding a requirement for residency and employment within the state for a specified period.

Main Provisions

  1. Residency and Employment Requirement: To receive the North Star Promise scholarship, eligible students must agree to live and work in Minnesota for a three-year period starting within six months after completing their degree or certificate program.

  2. Conversion to Student Loan: If a scholarship recipient does not meet the residency and employment condition, their scholarship will be converted to a student loan, which they will need to repay with interest.

  3. Conditions for Waiver: The commissioner can waive the residency and employment requirement if:

    • The recipient hasn't completed the degree within six years.
    • The recipient has not earned a baccalaureate degree.
    • The recipient is no longer enrolled in any educational institution.

  4. Deferment Possibilities: The requirement may be deferred for students who:

    • Are attending a postgraduate education program at least half-time.
    • Are engaged in full-time volunteer service (e.g., Peace Corps, AmeriCorps).
    • Experience extreme hardship.

  5. Duration and Cancellations: Recipients must fulfill the requirement within six years of the initial scholarship unless qualifying for a waiver or deferment. Obligations are canceled upon the student's death or permanent disability.

Significant Changes to Existing Law

  • Introduces a mandatory residency and employment condition for recipients of the North Star Promise scholarships.
  • Establishes procedures for converting scholarships into loans if conditions are not met.
  • Outlines waiver and deferment conditions for the residency and employment requirement.

Relevant Terms

North Star Promise scholarships, residency requirement, employment requirement, scholarship conversion, student loan, waiver, deferment, Minnesota residency, postgraduate education, volunteer service.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 11, 2025HouseFloorActionIntroduction and first reading, referred toHigher Education Finance and Policy
March 19, 2025HouseFloorActionAuthor added

Citations

 
[
  {
    "analysis": {
      "added": [
        "Includes reference to section 518A.69 for handling arrearages as a condition of eligibility for scholarships."
      ],
      "removed": [],
      "summary": "This bill amends eligibility conditions for scholarships, referencing compliance with child support payment agreements under section 518A.69.",
      "modified": []
    },
    "citation": "518A.69"
  },
  {
    "analysis": {
      "added": [
        "References section 136A.101 for satisfactory academic progress, integrating it into the scholarship eligibility criteria."
      ],
      "removed": [],
      "summary": "This bill modifies scholarship eligibility requirements, referencing satisfactory academic progress as defined in section 136A.101.",
      "modified": []
    },
    "citation": "136A.101"
  },
  {
    "analysis": {
      "added": [
        "Instate residency and employment requirement for scholarship recipients."
      ],
      "removed": [
        "Previous conditions not aligned with new residency and employment requirements."
      ],
      "summary": "The bill extensively amends section 136A.1465 related to scholarship conditions and introduces new residency and employment requirements.",
      "modified": [
        "Updates to eligibility criteria and inclusion of new clauses relevant to scholarship terms."
      ]
    },
    "citation": "136A.1465"
  },
  {
    "analysis": {
      "added": [
        "Interest rates for converted scholarships to student loans are established under section 270C.40."
      ],
      "removed": [],
      "summary": "This bill links to section 270C.40 for determining interest rates applied to scholarships converted to loans.",
      "modified": []
    },
    "citation": "270C.40"
  }
]

Sponsors