Bill > SF2739

This bill establishes comprehensive regulations for student banking services at higher education institutions in Minnesota, requiring institutions to ensure fair and transparent financial products for students. The bill defines key terms like "student banking services" (financial products offered through institutional partnerships) and creates two tiers of services, with Tier 1 specifically related to financial aid disbursement. The legislation prohibits financial institutions from charging various fees including overdraft, maintenance, and account closure fees for both Tier 1 and Tier 2 services, with additional restrictions on deposit/withdrawal and dormant account fees for Tier 1 services. Higher education institutions must require partner financial institutions to provide clear, plain-language service terms, offer competitive market-rate conditions, and ensure students fully understand account terms. Furthermore, institutions are mandated to submit annual reports to the commissioner detailing the number of student banking service accounts, revenue received from financial institutions, partner financial institution identities, and a summary of account terms and conditions. The bill aims to protect students from predatory banking practices and ensure they have access to fair, transparent financial services while studying.

Education

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF2739&ssn=0&y=2025