Minnesota's North Star Promise introduces tuition scholarships for eligible college students

The Minnesota State Legislature has introduced Senate Bill 2683, known as the North Star Promise, aimed at expanding access to higher education for low- and middle-income students. Introduced on March 17, 2025, the bill proposes a scholarship program that would cover up to 100% of tuition and fees for eligible students attending public postsecondary institutions or Tribal colleges in Minnesota.

The North Star Promise defines "eligible students" as residents who have completed the Free Application for Federal Student Aid (FAFSA) and have a family adjusted gross income below $80,000. To qualify, students must also be enrolled in at least one credit per semester, not have earned a baccalaureate degree, and meet various academic and legal criteria, including maintaining satisfactory academic progress and not being in default on any federal or state student loans.

Key provisions of the bill include the stipulation that the scholarship amount will be determined after accounting for "gift aid," which encompasses federal, state, institutional, and private financial aid that does not require repayment. This approach aims to ensure that the North Star Promise effectively reduces the financial burden on students by covering remaining tuition costs.

The introduction of this bill has sparked discussions among lawmakers and education advocates regarding its potential impact on college affordability and accessibility. Proponents argue that the North Star Promise could significantly alleviate financial barriers for students, particularly those from low-income backgrounds, thereby increasing enrollment and graduation rates in higher education. Critics, however, have raised concerns about the sustainability of funding for such a program and its implications for the state budget.

As the bill progresses through the legislative process, its economic implications are being closely monitored. If passed, the North Star Promise could reshape the landscape of higher education funding in Minnesota, potentially serving as a model for similar initiatives in other states. The bill is set to take effect in the fall term of the 2024-2025 academic year, marking a significant step toward enhancing educational opportunities for Minnesota's residents.