The bill establishes a new low-interest student loan program called the Higher Education Loan Program (HELP) in Minnesota, aimed at providing financial assistance to eligible students attending qualifying postsecondary institutions. Under the proposed law, the commissioner will issue HELP loans at a fixed interest rate not exceeding three percent, with annual loans capped at $5,000 and a total borrowing limit of $20,000 per student. The bill also creates a HELP loan account within the special revenue fund to manage the loans, with appropriations for the program being transferred to this account. The commissioner is authorized to contract with an outside servicer to facilitate the implementation of the loan program.

Eligibility for the HELP loans is defined in the bill, requiring students to be Minnesota residents, enrolled in a public or not-for-profit postsecondary institution in the state, and have a household income at or below 300 percent of the federal poverty guidelines. Additionally, the bill includes provisions for rulemaking by the commissioner to ensure effective implementation. It appropriates $17.5 million for fiscal years 2026 and 2027 from the general fund to support the HELP loan account, with a portion allocated for administrative costs, and includes a one-time appropriation for securing loan servicing for the program.