Purpose of the Bill

The bill aims to modify the eligibility requirements and award formula for the North Star Promise scholarship program in Minnesota. It seeks to expand access to higher education financial aid by adjusting income limits and scholarship policies.

Main Provisions

• Eligibility Criteria:

  • The bill changes the income eligibility for the scholarship program, allowing students from families with an adjusted gross income of up to $150,000 to qualify. Previously, the limit was $80,000.
  • Maintains existing requirements such as being a recent graduate or equivalent, enrollment status, and lack of prior baccalaureate degree.
  • Applicants must complete the Free Application for Federal Student Aid (FAFSA) or state aid application.
  • Ensures compliance with child support and loan defaults.

• Scholarship Awards:

  • Scholarships will cover up to 100% of tuition and fees after deducting other gift aid, adjusted by income level:
  • 100% for family incomes under $100,000.
  • 75% for incomes between $100,000 and $125,000.
  • 50% for incomes between $125,000 and $150,000.
  • No scholarships for incomes over $150,000.
  • Introduction of supplemental grants, if funds permit, up to 50% of what a student would receive from a Pell grant, based on need analysis.

• Financial Data Reporting:

  • Requires public and Tribal colleges that administer these financial aid programs to report detailed student data and awards given, in order to comply with state reporting requirements.

Significant Changes to Existing Law

• The bill significantly raises the income threshold for scholarship eligibility from $80,000 to $150,000.
• Redefines the scholarship award percentages relative to income levels.
• Establishes a new system for potential supplemental grants if funds are available.

Relevant Terms

North Star Promise, scholarship, higher education, FAFSA, state aid, gross income, Pell grant, tuition, financial aid, child support compliance, gift aid.