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SF2528 (Legislative Session 94 (2025-2026))

North Star Promise scholarships recipients in-state residency and work requirement imposition provision

Related bill: HF2241

AI Generated Summary

Purpose of the Bill

The bill aims to impose a residency and employment requirement for recipients of the North Star Promise scholarships in Minnesota. This requirement is part of an incentive for students to remain and work in Minnesota after completing their education.

Main Provisions

  • Scholarship Eligibility Requirements:

    • Students must complete the FAFSA or state aid application.
    • Have a family income below $80,000.
    • Be a secondary school graduate or equivalent, or be at least 17 years old and meet college admission requirements.
    • The applicant should not have earned a baccalaureate degree previously.
    • Be enrolled in credit-earning programs applicable to a diploma, certificate, or degree.
    • Be compliant with child support payments and not in default on educational loans.
    • Sign a contract to convert the scholarship to a loan if residency and employment conditions are not met.

  • Residency and Employment Requirement:

    • Scholarship recipients must agree to live and work in Minnesota for three years, starting within six months after completing their educational program.
    • Failure to meet this requirement would result in the scholarship being converted into a loan with added interest, which the student must repay.

Significant Changes

  • This bill introduces the concept of converting scholarships into loans if the recipients do not meet specific post-graduation residency and employment conditions.
  • It provides for waivers or deferments of these requirements under certain conditions like postgraduate education, full-time volunteer service, or extreme hardship.

Exemptions and Considerations

  • The residency and employment requirement can be waived or deferred for students under certain conditions (e.g., further education, volunteer service, hardship).
  • Obligations are void if the recipient experiences death or permanent disability.

Relevant Terms

North Star Promise scholarships, Minnesota residency, employment requirement, FAFSA, scholarship to loan conversion, default, academic progress, waiver, deferment, postsecondary education, Peace Corps, AmeriCorps.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 12, 2025SenateFloorActionIntroduction and first reading
March 12, 2025SenateFloorActionReferred toHigher Education

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References to agreements under section 518A.69 are mentioned in relation to court-ordered child support and its compliance requirements.",
      "modified": []
    },
    "citation": "518A.69"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Section 270C.40 is cited for establishing the interest rate applicable if a scholarship is converted into a student loan due to failure to meet residency and work requirements.",
      "modified": []
    },
    "citation": "270C.40"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The definition of satisfactory academic progress under section 136A.101 is used as a condition for scholarship eligibility.",
      "modified": []
    },
    "citation": "136A.101"
  }
]

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