Proposal requires grads to work in MN for each year of free tuition
The Minnesota Office of Higher Education calls the free college tuition program initiated in 2024 to stave off the decline in admissions the North Star Promise. Not surprisingly, nearly 17,000 students from families with an adjusted gross income under $80,000 enrolled at Minnesota State, University of Minnesota and tribal campuses in the first year.
As a result, some Minnesota lawmakers have proposed scholarship recipients make a promise of their own in recognition of taxpayers’ generosity, namely to remain in Minnesota one year for each year of free tuition.
Session Daily summarizes the proposed stipulation this way.
Rep. Peggy Scott (R-Andover) sponsors HF2241, that as twice amended, would, beginning with the 2026-27 academic year, require anyone who benefits from the scholarship program to live and work in Minnesota equal to the total duration of all academic terms for which the student received a scholarship after graduating. If those requirements are not met, the scholarship will be converted to a loan that the recipient would be required to repay with interest.
Office of Higher Education officials could waive or defer the requirement in certain circumstances.
“I do not think it is too much to ask these students who receive this valuable asset that they stay and work and give back, contributing to Minnesota’s economy for as little as one year for each year they’ve received free tuition,” Scott said.
The proposal represents a practical way of bolstering the state’s workforce at a time when many employers still scramble to find enough employees to fill available jobs. It might also help offset Minnesota’s persistent problem of seeing more young adults moving to other states than their peers settling here.
That explains the support of the Minnesota Chamber of Commerce and local chamber representatives who testified from around the state.
“This isn’t about limiting opportunity to students it’s about ensuring our state gets a return on its investment and our communities see the talent they need to grow and thrive,” said Christie Ransom, president and CEO of the Winona Area Chamber of Commerce.
Added Lori Higgins, president of the Metro North Chamber of Commerce, “Students receiving this state aid should then be part of Minnesota’s workforce post-graduation, completing the cycle of collaboration and directly addressing our state’s workforce needs. Minnesota employers receive skilled employees, and taxpayers and the state receive a direct return on their investment.”
Opponents argue adding a residency requirement could undermine the administration of the aid program.
Rep. Tina Liebling (DFL-Rochester) wondered why the bill targets only the North Star Promise program.
“I just think it’s a really awkward and difficult thing to do because where do you draw the line? We are putting a lot of money into the state grant, we’ve been doing that for many, many years and we don’t ask for this kind of direct feedback from students.”
“They would complicate a program designed to remove barriers, creating more roadblocks for the various students it was meant to help,” said Shae Horning, director of state affairs for UMN Undergraduate Student Government.
On the other hand, the measure gives North Star Promise recipients the opportunity to acknowledge the benefit received courtesy of taxpayers by putting their diploma to work in the state that helped them earn it. The proposal remains under consideration for potential inclusion in other legislation.