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HF2571 (Legislative Session 94 (2025-2026))

Income requirements and award formula for the North Star Promise scholarship program modified.

AI Generated Summary

Purpose of the Bill

The bill aims to modify and expand the eligibility criteria and award formula for the North Star Promise scholarship program. This program is designed to help students in Minnesota afford higher education by providing financial aid based on family income.

Main Provisions

  • Eligibility Changes:

    • The bill adjusts the income cap for scholarship eligibility. Previously, students with a family adjusted gross income below $80,000 were eligible. The amendment raises this cap to include families earning up to $150,000, broadening access to the scholarship.
    • Additional conditions for eligibility include completing the FAFSA or a state aid application, being enrolled in at least one credit per semester in a qualifying program, and maintaining satisfactory academic progress.

  • Award Calculation:

    • Scholarships will be awarded to cover up to 100% of tuition and fees that remain after gift aid (like grants and scholarships) is applied.
    • The percentage of tuition covered varies by income level:
    • 100% coverage for families earning less than $100,000.
    • 75% coverage for incomes between $100,000 and $125,000.
    • 50% coverage for incomes between $125,000 and $150,000.
    • No scholarship for those earning above $150,000.

  • Supplemental Grants:

    • For academic years 2024-2027, if funds are still available after awarding the main scholarships, supplemental grants can be given. These grants will be up to 50% of a Pell grant based on household size and family income.

  • Reporting Requirements:

    • Institutions that provide financial aid to students with incomes up to $150,000 must report detailed data on students and awards to the Minnesota Office of Higher Education. This helps ensure compliance with reporting mandates and assess the impact of these scholarships.

Significant Changes to Existing Law

  • Income Eligibility Increase: Expands the family income eligibility limit from $80,000 to $150,000, significantly increasing the number of students who can benefit.
  • Redefined Award Formula: Introduces a tiered scholarship amount based on family income rather than a flat rate or single threshold, allowing for more flexible and equitable distribution of financial aid.

Relevant Terms

North Star Promise, FAFSA, adjusted gross income, tuition and fees, gift aid, Pell grant, supplemental grant, federal needs analysis, cost of attendance, Minnesota Office of Higher Education.

Bill text versions

Actions

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

Citations

 
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  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill references section 518A.69 concerning court-ordered child support and payment agreements.",
      "modified": []
    },
    "citation": "518A.69"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill refers to section 136A.101 for defining satisfactory academic progress for scholarship eligibility.",
      "modified": []
    },
    "citation": "136A.101"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill includes reporting requirements linked to section 136A.121 subdivision 19.",
      "modified": []
    },
    "citation": "136A.121"
  }
]

Sponsors