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HF3627 (Legislative Session 94 (2025-2026))

Maximum income eligibility condition for the North Star Promise scholarship program increased, and required transfer of money increased.

Related bill: SF3754

AI Generated Summary

Purpose

  • Update the North Star Promise scholarship program by raising the income eligibility limit and increasing the required state funding transfer to the program. The bill amends Minnesota law to adjust who can qualify for the scholarship and to provide more financial support for the program.

Main Provisions

  • Amends Minnesota Statutes 2025 Supplement, section 136A.1465, subdivision 2, to specify eligibility conditions for a North Star Promise scholarship.
  • Eligibility conditions (as amended):
    1. The student has filed the Free Application for Federal Student Aid (FAFSA) or the state aid application by 30 days after the start of the term for which the scholarship is awarded.
    2. Family adjusted gross income (AGI) is below $100,000 (increased from $80,000).
    3. The student is a graduate of a secondary school or its equivalent, or is 17 years of age or older, and has met all admission requirements to an eligible college or university.
    4. The student has not yet earned a first baccalaureate degree at the time the scholarship is awarded.
    5. The student is enrolled in at least one credit per fall, spring, or summer semester.
    6. The student is enrolled in a program or course of study that applies to a degree, diploma, or certificate.
    7. The student is not in default on any federal or state student education loan.
    8. The student is not more than 30 days in arrears in court-ordered child support (unless the student is more than 30 days in arrears but is complying with a written payment agreement).
    9. The student has not been convicted of, or pled nolo contendere or guilty to, a crime involving fraud in obtaining federal Title IV funds.
    10. The student is meeting satisfactory academic progress (as defined in the relevant statute).
  • The provisions retain the existing framework for eligibility but raise the income ceiling and reaffirm several financial and conduct-related requirements that must be met to receive the scholarship.

Funding and Fiscal Changes

  • The bill describes increasing a required transfer of money to support the North Star Promise program. The exact amount or mechanism is not detailed in the text provided, but the intention is to provide more funds to the program and ensure adequate financing.

Significant Changes to Existing Law

  • Raises the income eligibility threshold for North Star Promise scholarships from $80,000 to $100,000.
  • Explicitly directs an increase in the required transfer of money to the North Star Promise program (i.e., higher state funding for the program).
  • Updates the list of eligibility requirements to align with current federal student aid processes (FAFSA/state aid filing) and to reinforce financial, academic, and conduct criteria.

Notes

  • The bill modifies the eligibility criteria while preserving core elements such as enrollment status, progress standards, and avoidance of fraud or default related issues.
  • The section being amended is Minnesota Statutes 2025 Supplement, section 136A.1465, subdivision 2, with references to related education financing in the Laws of 2025 First Special Session.

Relevant Terms - North Star Promise scholarship program - income eligibility - adjusted gross income (AGI) - FAFSA - state aid application - eligible college or university - first baccalaureate degree - credit enrollment - degree, diploma, or certificate - default on student loans - child support arrears - Title IV funds fraud - satisfactory academic progress (SAP) - Minnesota Statutes 136A.1465 - funding transfer / state funding - higher education finance and policy

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 23, 2026HouseActionIntroduction and first reading, referred toHigher Education Finance and Policy

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill amends Minnesota Statutes 136A.1465, subd. 2 (Conditions for eligibility) to raise the North Star Promise scholarship income-eligibility cap and maintain other eligibility criteria (FAFSA/state aid application completion by term start; general eligibility; enrollment; program alignment; non-default on loans; child support arrears considerations; and satisfactory academic progress).",
      "modified": [
        "Increases the family adjusted gross income eligibility cap for the North Star Promise scholarship from $80,000 to $100,000."
      ]
    },
    "citation": "136A.1465",
    "subdivision": "2"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill references Minn. Stat. § 136A.101, subd. 2, defining satisfactory academic progress as a criterion for eligibility for the North Star Promise scholarship.",
      "modified": []
    },
    "citation": "136A.101",
    "subdivision": "2"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill cross-references Minn. Stat. § 518A.69 (arrearages/payment agreements) in relation to child support status criteria for scholarship eligibility.",
      "modified": [
        "Cross-reference maintained; no substantive change to §518A.69."
      ]
    },
    "citation": "518A.69",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill references federal law governing fraud in obtaining Title IV federal student aid funds (34 CFR 668, Subpart C) to determine eligibility (e.g., avoidance of fraud convictions).",
      "modified": [
        "Cross-reference to 34 CFR Subpart C for eligibility purposes."
      ]
    },
    "citation": "Code of Federal Regulations, Title 34, Subtitle B, Chapter VI, Part 668, Subpart C",
    "subdivision": ""
  }
]

Progress through the legislative process

17%
In Committee

Sponsors

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