Policymakers can capture an increase in grant money for college students
Minnesota students stand to benefit from a $15 million increase in funding for need-based aid for college students if the state takes appropriate steps. This welcome investment is the result of long-awaited Congressional action. It is up to Minnesota policymakers to make sure that students receive the full benefit of this substantial increase.
Due to the increases to the Pell Grant recently enacted by Congress, an additional $15 million is available for the Minnesota State Grant Program, serving 80,000 college students. State grant awards reduce what students have to pay from savings or loans for a college education. For low- and middle-income college students — one out of four in the state — this new money to expand the size of the awards is overdue. Many college students also will be newly eligible for the awards. For families struggling with higher education costs, this assistance can't come soon enough.
Exactly how the $15 million will be allocated is now in the hands of Minnesota legislators. Last week, the House and Senate passed their finance bills. The bills differ on how the aid is added and how much goes to State Grant recipients. In the Senate bill, all $15 million would be invested back into the program, increasing the amount and number of awards. In the House bill, $11 million would be invested into the State Grant Program, while $4 million would transfer to other programs.
Now the bills move to a conference committee to work out the differences. Gov. Tim Pawlenty preserved State Grant funding in his budget balancing proposal; legislators need to do the same to maximize the benefits of the federal increase. Investing in State Grant awards is the most efficient and fair way Minnesota can help college students afford the educations they need. And when we help these thousands of college students, we help our whole state. Policymakers can be good stewards of Minnesota's future and capture this long-awaited increase — and not let it slip away.