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HF2649 (Legislative Session 94 (2025-2026))

Disclosure of employment opportunities for fields of study required, institution eligibility for state student aid modified, and report required.

Related bill: SF1989

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to enhance transparency in higher education institutions regarding employment outcomes for graduates. It mandates certain disclosure requirements for these institutions to ensure prospective students can make well-informed decisions about their education and future careers. Additionally, it modifies eligibility criteria for state student aid programs.

Main Provisions

  • Disclosure Requirements: Postsecondary institutions must prominently display job placement rates and employment outcomes, including median earnings for each field of study, in their catalogs and on their websites. They must also report this information annually to a designated office that oversees higher education.
  • Random Audits for Compliance: The bill requires the overseeing office to conduct random audits of educational institutions to ensure compliance with these disclosure mandates. Noncompliance will be reported to legislative committees concerned with higher education.
  • Eligibility for State Student Aid: Specifies that institutions must maintain compliance with both state and federal financial aid program regulations. Those found in violation by the U.S. Department of Education or losing eligibility for the federal Pell Grant program may lose their eligibility for state student aid as well.

Significant Changes to Existing Law

  • The bill updates the eligibility requirements for institutions to participate in state student aid programs. These include additional compliance with job placement and earnings disclosure requirements, adherence to strict administrative and financial standards, and a mandate to participate in the federal Pell Grant program within four years if ownership changes occur at eligible institutions.
  • It adds the requirement for institutions to provide detailed employment outcomes for their fields of study and subjects them to random audits for compliance checks.

Relevant Terms

  • Postsecondary institution
  • State student aid
  • Pell Grant program
  • Job placement rates
  • Gainful employment outcomes
  • Median earnings
  • Compliance audits

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 23, 2025HouseFloorActionIntroduction and first reading, referred toHigher Education Finance and Policy

Citations

 
[
  {
    "analysis": {
      "added": [
        "Clarification on institutions changing ownership and their participation in the federal Pell Grant program."
      ],
      "removed": [
        ""
      ],
      "summary": "This legislation modifies institution eligibility requirements for state student aid under section 136A.63.",
      "modified": [
        "Timeline for eligibility requirements related to ownership changes."
      ]
    },
    "citation": "136A.63",
    "subdivision": "subdivision 2"
  }
]

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