SF4692

Purpose

• The bill aims to modify the income eligibility requirements and funding levels for the North Star Promise scholarship program. It also amends related definitions used to determine what counts as gift aid for the program, and clarifies how certain student costs are treated.

Main Provisions

• Amends Minnesota Statutes 2025 Supplement section 136A.1465 subdivisions 1 and 2 to update how the North Star Promise scholarship works.
• Redefines who is an "eligible student" as a resident student (per 136A.101, subd. 8) who enrolls in any public postsecondary institution or Tribal college and who meets the eligibility requirements in the next subdivision.
• Expands and clarifies what counts as "gift aid" for the North Star Promise program. Gift aid includes:
  • All federal financial aid that is not a loan or help from a work-study program.
  • State financial aid not designated for other expenses and not a loan or work-study.
  • Institutional financial aid (grants, scholarships, tuition waivers, fellowships, stipends, etc.) not designated for other expenses and not a loan or work-study.
  • All private financial aid that is not a loan or work-study.
• Provides that financial aid from state public postsecondary institutions and Tribal colleges that is specifically designated for other expenses is not considered gift aid for North Star Promise purposes.
• Defines and clarifies what counts as "other expenses" for the program. Other expenses include books, required supplies, child care, emergency assistance, food, and housing.
• Clarifies related terms:
  • Public postsecondary educational institution: institutions operated by the state or the University of Minnesota Board of Regents.
  • Cost of attendance: the amount defined in federal law.
  • State college: a two-year community or technical college in the Minnesota State Colleges and Universities system.
  • Tribal college: a college defined in statute.
  • Tuition and fees: the resident tuition and mandatory fees charged by an institution.

Significant Changes to Existing Law

• Broadens or adjusts income eligibility criteria for the North Star Promise scholarship by linking eligibility to the revised subd. 2 requirements.
• Reforms the way different sources of financial aid are classified for North Star Promise, specifically treating certain aid designated for other expenses as non-gift aid.
• Establishes clearer definitions around what constitutes other expenses and which costs are eligible to be covered, potentially affecting the total aid a student can receive.
• Aligns terminology and definitions with both federal standards (cost of attendance) and Minnesota-specific postsecondary structures (public institutions, Tribal colleges, state colleges) to ensure consistent application of the program.

Relevant terms from the bill (to aid understanding and search relevance) - North Star Promise - eligible student - gift aid - other expenses - cost of attendance - public postsecondary educational institution - Tribal college - tuition and fees - federal financial aid - work-study program - state financial aid - institutional financial aid - private financial aid - emergency assistance - child care - books and required supplies

Relevant Terms - North Star Promise - eligible student - gift aid - other expenses - cost of attendance - public postsecondary educational institution - Tribal college - tuition and fees - federal financial aid - work-study - state financial aid - institutional financial aid - private financial aid - emergency assistance - child care - books - required supplies