State makes rare investment and boosts aid for college students
The thousands of college students who receive need-based aid from the state of Minnesota will see their awards increase by $70 million over two years, thanks to actions taken this legislative session. This will be the largest increase in State Grant awards in more than a decade.
The increase is the result of action at the federal level, combined with bipartisan support in Minnesota for targeting assistance to college students who need it the most. It is happening in spite of the state’s budget deficit. Grants through the State Grant program help 83,000-some students afford college educations at two- or four-year institutions that are both public and private. Most students’ families have incomes below $40,000.
Governor Tim Pawlenty signed the Omnibus Higher Education Appropriations Bill into law on May 16. The Senate and House had negotiated and agreed on the legislation (SF 2083) earlier in the month.
“With today’s economic hardships, expanding Minnesota’s need-based aid was more important than ever,” said Pam Jolicoeur, president of Concordia College and board chair at the Minnesota Private College Council. “Our policy leaders saw the need to act now to build the educated workforce that will be required in the future as we move into recovery. We thank them for their leadership.”
The first step was taken earlier this year by the President and members of Congress when they put $15.6 billion of new funds into the Pell Grant program, which helps the lowest income students. Since the State Grant program is linked to the Pell, the new federal funds triggered the $70 million increase in State Grants. But to secure that size of an increase, Minnesota policymakers had to keep current state funding stable. And on that front, all branches of state government agreed.
“After years of helping students less and less, state and federal governments are stepping up and doing more,” said David B. Laird, Jr., president of the Minnesota Private College Council. “There is a significant shift, one that recognizes that we need to act now to strengthen our economy for the long haul.”
The State Grant changes will include:
- Making thousands more middle-income students eligible for government aid,
- Increasing the average grant by 17 percent, raising it to $1,712, and
- Helping eligible students who are not able to complete a bachelor’s degree in four years by awarding the grant for an additional semester.
Agreement on the increase in State Grant awards has not carried over to many other areas in the closing days of the legislative session, which ended May 18. Divisions between the Republican governor and DFL-controlled chambers remained sizable and no overarching budget was approved. Gov. Pawlenty has stated that he will use his authority to keep the state’s budget balanced to make cuts to close the deficit. These cuts would appear to need to go beyond what he proposed in his initial budget at the start of the year, so it remains possible that the State Grant’s fate could shift.
Base funding for the public institutions has already been trimmed and could be targeted with more cuts as well — exacerbating the need for higher tuitions or spending cuts at the University of Minnesota and Minnesota State Colleges and Universities campuses.
The State Grant’s impact is felt strongest at public institutions, which enroll most of the recipients. But the program is important for students at the nonprofit colleges and universities as well. About 12 percent of the students receiving the awards attend one of the Minnesota Private College Council member institutions, where they account for about a quarter of the undergraduate student body.
While the Council has been an ongoing champion for the program, other groups have urged policymakers to be supportive. The Minnesota Chamber of Commerce identified the State Grant as its top priority for higher education, for example, and Growth & Justice released a report last year calling for additional State Grant investments.