Low-interest student loan program created, rulemaking authorized, and money appropriated.

This bill establishes a new low-interest student loan program in Minnesota to help eligible students cover educational costs. The program provides loans with a maximum interest rate of three percent, with annual borrowing limits of $5,000 and a lifetime cap of $20,000 per student. Eligibility is restricted to Minnesota residents attending public or not-for-profit institutions in the state whose household income does not exceed 300 percent of the federal poverty guidelines. The state will fund the program with $17.5 million in fiscal years 2026 and 2027, and the commissioner of the Office of Higher Education will manage the loans and related administrative tasks.