Purpose

• The bill aims to modify income eligibility requirements for Minnesota’s North Star Promise scholarship program and to adjust funding amounts for those scholarships. It also updates definitions and rules related to how financial aid is counted toward the program.

Main provisions

• Definitions updated for North Star Promise:
  • eligible student: a Minnesota resident enrolled in a public postsecondary institution or Tribal college who meets the eligibility requirements described in the bill.
  • gift aid: includes all federal financial aid (that isn’t a loan or work-study), state financial aid (not designated for other expenses and not a loan/work-study), institutional financial aid (grants, scholarships, tuition waivers, fellowships, stipends or similar payments not designated for other expenses and not loans/work-study), and private financial aid (not a loan or work-study).
• Clarification about other expenses:
  • Financial aid from state public postsecondary institutions and Tribal colleges that is designated specifically for other expenses is not considered gift aid for purposes of the North Star Promise scholarship.
• What counts as “other expenses”:
  • Includes items such as books, required supplies, child care, emergency assistance, food, and housing.
• Key terms and scope:
  • public postsecondary educational institution includes institutions operated by the state or the University of Minnesota Board of Regents.
  • recognized cost of attendance is defined according to federal law (U.S. Code reference included in the bill).
  • state college means a two-year community or technical college in Minnesota’s State Colleges and Universities system.
  • Tribal college has a definition based on statute.
  • tuition and fees means the resident tuition and mandatory fees charged by an institution.

Significant changes to existing law

• The bill changes how gift aid is defined for the North Star Promise program, explicitly listing what counts as gift aid and what does not.
• It adds or clarifies that aid designated for “other expenses” is not counted as gift aid, potentially changing how aid is calculated toward North Star Promise eligibility.
• It provides precise definitions for institutions (public postsecondary institutions, state colleges, Tribal colleges) and for costs (cost of attendance, tuition and fees), which can affect eligibility calculations and the amount of aid considered under the program.
• While the bill text excerpt focuses on definitions and gift-aid treatment, the stated purpose indicates changes to income eligibility requirements and funding amounts, which may adjust who qualifies for North Star Promise and how much aid they receive.

What this means for students

• If you receive financial aid from state public colleges or Tribal colleges that is labeled for things other than tuition/fees (e.g., living expenses, books, childcare), that aid may no longer count as gift aid for North Star Promise, which could affect your eligibility or the amount considered under the scholarship.
• The bill clarifies what counts as cost of attendance and which types of aid are eligible to be counted toward the North Star Promise, potentially changing how much aid you can receive or how your eligibility is determined.
• The changes target a clearer framework for determining North Star Promise eligibility and funds, with a focus on the kinds of aid and expenses that influence the scholarship.

Relevant Terms - North Star Promise - gift aid - other expenses - eligible student - cost of attendance - public postsecondary educational institution - Tribal college - state college - tuition and fees - federal financial aid - institutional financial aid - private financial aid