| 1 | 1 | | 1.1 A bill for an act |
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| 2 | 2 | | 1.2 relating to higher education; creating a low-interest student loan program; |
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| 3 | 3 | | 1.3 authorizing rulemaking; appropriating money; proposing coding for new law in |
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| 4 | 4 | | 1.4 Minnesota Statutes, chapter 136A. |
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| 5 | 5 | | 1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: |
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| 6 | 6 | | 1.6 Section 1. [136A.165] HIGHER EDUCATION LOAN PROGRAM. |
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| 7 | 7 | | 1.7 Subdivision 1.Establishment.The higher education loan program (HELP) is established |
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| 8 | 8 | | 1.8to provide low-interest loans to eligible students attending eligible Minnesota postsecondary |
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| 9 | 9 | | 1.9institutions. |
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| 10 | 10 | | 1.10 Subd. 2.Loans.The commissioner shall issue HELP loans to eligible students at a fixed |
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| 11 | 11 | | 1.11interest rate not to exceed three percent unless another fixed rate is established in law. Loans |
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| 12 | 12 | | 1.12shall be made based on the availability of funds. A HELP loan must not exceed $5,000 |
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| 13 | 13 | | 1.13annually. The cumulative amount borrowed by a student under this section shall not exceed |
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| 14 | 14 | | 1.14$20,000. The commissioner may contract with an outside servicer to implement the loan |
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| 15 | 15 | | 1.15program in this section. |
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| 16 | 16 | | 1.16 Subd. 3.Account established.A HELP loan account is established in the special revenue |
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| 17 | 17 | | 1.17fund for the purpose of making loans under this section. Appropriations to the commissioner |
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| 18 | 18 | | 1.18for purposes of the program are for transfer to the account. Principal and interest repaid to |
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| 19 | 19 | | 1.19the commissioner shall be deposited in the account. All money in the account, including |
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| 20 | 20 | | 1.20interest, is appropriated to the commissioner to make loans under this section. Appropriations |
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| 21 | 21 | | 1.21from the account do not cancel and are available until expended. |
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| 22 | 22 | | 1.22 Subd. 4.Eligibility.A student is eligible for a HELP loan if: |
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| 23 | 23 | | 1Section 1. |
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| 24 | 24 | | 25-01927 as introduced02/03/25 REVISOR VH/AC |
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| 25 | 25 | | SENATE |
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| 26 | 26 | | STATE OF MINNESOTA |
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| 27 | 27 | | S.F. No. 1700NINETY-FOURTH SESSION |
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| 28 | 28 | | (SENATE AUTHORS: DRAHEIM, Putnam, Duckworth, Kupec and Rarick) |
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| 29 | 29 | | OFFICIAL STATUSD-PGDATE |
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| 30 | 30 | | Introduction and first reading02/20/2025 |
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| 31 | 31 | | Referred to Higher Education 2.1 (1) the student is a Minnesota resident; |
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| 32 | 32 | | 2.2 (2) the student is attending a public or not-for-profit postsecondary institution located |
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| 33 | 33 | | 2.3in Minnesota that is an eligible institution under section 136A.103; and |
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| 34 | 34 | | 2.4 (3) the student's household income is less than or equal to 300 percent of the federal |
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| 35 | 35 | | 2.5poverty guidelines for the student's household size. |
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| 36 | 36 | | 2.6 Subd. 5.Rulemaking.The commissioner may adopt rules to implement the provisions |
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| 37 | 37 | | 2.7of this section. |
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| 38 | 38 | | 2.8 Sec. 2. APPROPRIATIONS. |
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| 39 | 39 | | 2.9 (a) $17,500,000 in fiscal year 2026 and $17,500,000 in fiscal year 2027 are appropriated |
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| 40 | 40 | | 2.10from the general fund to the commissioner of the Office of Higher Education for deposit in |
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| 41 | 41 | | 2.11the HELP loan account under Minnesota Statutes, section 136A.165. The commissioner |
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| 42 | 42 | | 2.12may use up to three percent of this appropriation for administrative costs. |
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| 43 | 43 | | 2.13 (b) $....... in fiscal year 2026 is appropriated from the general fund to the commissioner |
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| 44 | 44 | | 2.14of the Office of Higher Education to secure a loan service for the higher education loan |
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| 45 | 45 | | 2.15program under Minnesota Statutes, section 136A.165. This is a onetime appropriation. |
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| 46 | 46 | | 2Sec. 2. |
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| 47 | 47 | | 25-01927 as introduced02/03/25 REVISOR VH/AC |
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