Purpose of the Bill

The purpose of this bill is to modify the eligibility criteria for the North Star Promise scholarships in Minnesota. It aims to restrict scholarship availability to students enrolled in programs focused on high-demand industries and occupations.

Main Provisions

• Eligibility Requirements:

  • Students must complete the Free Application for Federal Student Aid (FAFSA) or the state aid application.
  • Eligible students should have a family adjusted gross income below $80,000.
  • The student must be a secondary school graduate or equivalent, and at least 17 years old.
  • Applicants should not have previously earned a baccalaureate degree.
  • Students must be enrolled in at least one credit per semester.
  • Enrollment must be in programs or courses that lead to a degree, diploma, or certificate in a high-demand field.

• Programs of Study:

  • Eligible programs are limited to those leading to employment in industries and occupations deemed in demand in Minnesota.
  • Determination of high-demand industries and occupations will be based on employment data from the Department of Employment and Economic Development, focusing on fields with the highest growth or job openings.
  • The list of eligible programs and industries will be reviewed and potentially adjusted every three years to reflect labor market updates.

• Compliance Requirements:

  • Students should not be in default on educational loans or behind on child support unless under a repayment plan.
  • Students should maintain satisfactory academic progress.

Significant Changes to Existing Law

• This bill narrows the eligibility for the North Star Promise scholarships by aligning them with Minnesota's workforce needs, focusing on high-demand occupations.
• It introduces a systematic review process for determining eligible programs of study, ensuring they remain aligned with state labor demands.

Reporting Requirements

• The commissioner of higher education must submit a preliminary report by September 1, 2025, with annual reports starting February 15, 2026.
• Reports will include financial statuses, a list of eligible programs, scholarship participation data, demographics of recipients, retention rates, and graduation outcomes.

Relevant Terms

North Star Promise scholarships, high-demand industries, eligibility criteria, FAFSA, Minnesota Department of Employment and Economic Development, labor market data, academic progress, higher education aid.