Purpose of the Bill

The bill aims to standardize financial aid offer forms for higher education institutions in Minnesota to improve clarity and comprehension for students applying for financial aid. This initiative is called the "College Financing Literacy Act."

Main Provisions

• Standardized Form Creation: The bill mandates the creation of a standard format for financial aid offer forms. It specifies that these forms may have separate versions for different groups, such as undergraduate versus graduate students, and first-time versus returning students.

• Stakeholder Consultation: The commissioner must consult with stakeholders, including student loan advocates, higher education institutions, and financial aid administrators, to develop these forms and review them by September 2025.

• Implementation Timeline: The finalized financial aid offer forms should be published by September 2026, with institutions required to use them starting in the 2027-2028 academic year.

• Consistent Terminology: Institutions must use standardized terms in all communications regarding financial aid.

• Form Contents: The form should include:

  • Estimated costs, including tuition, fees, housing, and other personal expenses.
  • Details on grants and scholarships with an explanation of which do not need to be repaid.
  • Net price estimation that a student’s family can expect to pay.
  • Information about loan options, including interest rates and repayment terms.

• Supplementary Information: Forms must also provide:

  • Data on resources for students with dependents.
  • Information on the acceptance process of aid offers.
  • Additional details about loans, work-study opportunities, and private loan options.

• Authority to Modify: The commissioner has the authority to update the form to reflect legal changes or for clarity.

Significant Changes to Existing Law

• This is a new regulation coded in Minnesota Statutes chapter 136A, with no previous standard statewide financial aid offer form.
• Institutions must comply with these standardized documents unless a federal uniform form is mandated, which would supersede this state law.

Relevant Terms

• Standard financial aid offer form
• College Financing Literacy Act
• Higher education institutions
• Financial aid
• Grants and scholarships
• Student loans
• Stakeholder consultation
• Net price
• Work-study opportunities
• Minnesota Statutes chapter 136A