Purpose

This bill modifies the North Star Promise scholarship program to widen eligibility and adjust funding requirements. The changes aim to make more students eligible for state scholarship support for college by raising the income cap and increasing the program’s funding transfer obligation, alongside clarifying key eligibility rules.

Main provisions

• Eligibility criteria for North Star Promise scholarships are updated to include:

  • The student or applicant must have filed the Free Application for Federal Student Aid (FAFSA) or the state aid application, within 30 days after the term starts for which the scholarship is awarded.
  • Family adjusted gross income (FAGI) must be not more than $100,000 (increased from the previous limit of $80,000).
  • The student must be a high school graduate (or have an equivalent) or be at least 17 years old, and must meet all admission requirements for enrollment at an eligible college or university.
  • The student must not have completed the degree requirements for their first baccalaureate degree at the time the scholarship is awarded.
  • The student must be enrolled in at least one credit for the fall, spring, or summer term.
  • The program of study must lead to a degree, diploma, or certificate.
  • The student must not be in default on any federal or state student loan.
  • The student must not be more than 30 days in arrears on court-ordered child support collected or enforced by the relevant public authority, unless they are within a written payment agreement.
  • The student must not have been convicted of, or pled nolo contendere or guilty to, a crime involving fraud in obtaining federal Title IV funds.
  • The student must be meeting satisfactory academic progress as defined in the statute.

• Funding/transfer requirement:

  • The bill indicates an increase to a required transfer of money to support the program, though the exact amount or mechanism is not fully detailed in the excerpt provided.

• Administrative/statutory references:

  • The changes modify Minnesota Statutes 2025 Supplement section 136A.1465, subdivision 2, and relate to the North Star Promise scholarship program and related funding provisions.

Significant changes

• Income eligibility cap increases:
  • From up to $80,000 to up to $100,000 in family adjusted gross income, allowing more students to qualify.
• Expanded eligibility conditions:
  • Continues to require FAFSA/ state aid filing within 30 days of term, enrollment in a qualifying program, and progress/sanctions rules (default status, child support, and Title IV fraud provisions) but now under updated income limits.
• Funding/transfer update:
  • Requires an increased transfer of funds to support the scholarship program, signaling higher ongoing program funding, though the exact increase is not shown in the excerpt.

Relevant terms - North Star Promise scholarship program - Minnesota Statutes 136A.1465 - Subdivision 2 (as amended) - FAFSA (Free Application for Federal Student Aid) - state aid application - family adjusted gross income (FAGI) - eligible college or university - degree, diploma, or certificate - first baccalaureate degree - credit hour (at least one credit per term) - default on loans (federal or state) - child support arrears - Title IV funds - fraud in obtaining federal Title IV funds - satisfactory academic progress (SAP) - funding transfer / transfer of money for program support