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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 the North Star Promise scholarship program in Minnesota. Specifically, it seeks to update the income requirements for eligibility and revise the scholarship award formula to better accommodate students based on their family income levels.

Main Provisions

  1. Income Eligibility Changes:

    • The family adjusted gross income eligibility range for receiving the scholarship is expanded. Previously, this was capped at $80,000; it is now increased to $150,000. This change allows more students to become eligible for the scholarship.

  2. Scholarship Award Formula:

    • Scholarships will cover up to 100% of tuition and fees after other gift aid is deducted.
    • The percentage covered by the scholarship varies based on family income:
      • 100% if family income is less than $100,000.
      • 75% if family income is between $100,000 and $125,000.
      • 50% if family income is between $125,000 and $150,000.
      • No scholarship is awarded if family income exceeds $150,000.

  3. Supplemental Grants:

    • For academic years 2024-2027, any remaining funds after awarding the primary scholarships may be used for supplemental grants. These grants can be up to 50% of what a student would receive from the Pell Grant, determined by factors such as household size and income.

  4. Data Reporting Requirements:

    • Public postsecondary institutions and Tribal colleges must provide student-level data to the Office of Higher Education for scholarships given to students within the expanded income bracket of up to $150,000.

Significant Changes to Existing Law

  • The income threshold for eligibility expands from $80,000 to $150,000, significantly increasing the number of students who can benefit from the North Star Promise scholarship.
  • The scholarship award system changes from a flat rate to a tiered percentage based on family income, making it more flexible and needs-based.

Relevant Terms

  • North Star Promise scholarship
  • Family adjusted gross income
  • Tuition and fees
  • Gift aid
  • Pell Grant
  • Supplemental grants
  • Public postsecondary institutions
  • Tribal colleges

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 20, 2025HouseFloorActionIntroduction and first reading, referred toHigher Education Finance and Policy

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill refers to the compliance requirement for individuals in arrears in child support payments under section 518A.69.",
      "modified": [
        "Clarifies conditions under which a student in arrears for child support can maintain scholarship eligibility by complying with payment agreements."
      ]
    },
    "citation": "518A.69",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill refers to the criteria for maintaining satisfactory academic progress as defined in section 136A.101 subdivision 10.",
      "modified": [
        "Aligns scholarship eligibility with standards of satisfactory academic progress."
      ]
    },
    "citation": "136A.101",
    "subdivision": "subdivision 10"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill refers to reporting requirements for financial aid programs under section 136A.121 subdivision 19.",
      "modified": [
        "Updates reporting requirements for institutions administering financial aid, aligning them with new scholarship criteria."
      ]
    },
    "citation": "136A.121",
    "subdivision": "subdivision 19"
  }
]

Progress through the legislative process

17%
In Committee

Sponsors