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North Star Promise Plus is temporary, up to 50% of Pell for extra costs; main North Star covers tuition
Summary
Staff explained North Star Promise is a last-dollar tuition scholarship with an $80,000 AGI cap for public institutions; the temporary North Star Promise Plus grants can cover non-tuition costs and are funded from one-time special revenue.
Committee staff described the structure and limits of the North Star Promise scholarship and the temporary North Star Promise Plus supplement.
Nathan Hopkins explained that North Star Promise, enacted in 2023, is a last-dollar scholarship that covers tuition and mandatory fees at public institutions and tribal colleges for students with family adjusted gross income below $80,000. ‘‘This is a last dollar scholarship, so there's no set amount in law for it. It is intended to cover the remaining tuition and fees that the student has to pay at their institution after factoring in all other gift aids,’’ Hopkins said.
Hopkins described North Star Promise Plus as a temporary enhancement funded from one-time money placed in a special revenue fund in the 2023 omnibus bill. The Plus awards are available for the program’s first three academic years and may be ‘‘up to 50% of a student's Federal Pell Grant amount,’’ Hopkins said. He added that the commissioner has discretion to adjust Plus award amounts based on demand and fund availability.
Committee members asked whether North Star Promise Plus has use restrictions or in-state work requirements. Hopkins said students receiving Plus money generally get the funds and that, for tax purposes, amounts used for qualified education expenses (books, supplies, room and board) are more likely to be nontaxable; he also said the North Star Promise scholarship has no post-graduation in-state work requirement, unlike some loan-repayment or profession-specific scholarships.
Chair Rehrig and Representative Robbins asked whether recipients must remain in Minnesota after using North Star funds; Hopkins replied there is no such requirement for North Star Promise. Hopkins and other staff noted the Office of Higher Education would be the operational contact for detailed administrative answers and that members requested further data on average Plus awards in the current year.
No bill or vote occurred during the briefing; staff framed North Star Promise Plus as a temporary, commissioner-administered supplement that can be adjusted administratively depending on demand and the special revenue fund balance.
