Rising tuitions and fees have hit low- and moderate-income students and their families the hardest; it makes sense to target state resources there. Minnesota’s investment in need-based aid has slowed in recent years. The value of the average State Grant award has fallen 14 percent in the last five years, for students at Minnesota’s public and private colleges. Colleges have responded by increasing institutional grants, but that has not been enough. Student debt levels have had to grow to fill the gap left by shrinking state and federal grants.

Status of legislative bills introduced this session
Earlier this session, legislation was introduced that would improve our state’s need based aid for college students, through the State Grant Program. Introduced by Sen. Rod Skoe (DFL-Clearwater) and Rep. Joe Atkins (DFL-Inver Grove Heights), Senate File 786 and House File 1142 would allow thousands more middle-income families to be eligible for the program and help the 71,000 current recipients with increased awards.

As of late March, portions of these proposals are incorporated in both Senate and House omnibus higher education bills — as well as the Governor’s proposed budget — but at insufficient levels. The Senate version would go so far as to spend less than the current base (-$11 million) on the State Grant Program. The House and Governor would each add $12 million to the program.

In the coming weeks the Senate, House and Governor’s office will be figuring out how to reach agreement on all areas of the state budget, including higher education funding. Now is the time for policy makers to hear about the importance of ensuring that need-based aid is adequately funded.

Why focusing spending on need-based aid is important
This is an important issue for the health and welfare of the state. Minnesota’s competitiveness depends on putting as many students as possible on a path to college success. The number of college graduates in Minnesota will soon fall 12 percent, while the economy will require twice as many graduates — not fewer.

Who receives need-based aid
The state’s need-based aid benefits 71,000 low- and middle-income college students a year (that’s one in four). Almost three-quarters of the recipients have family incomes below $40,000.

While most of the students who receive State Grants attend public colleges and universities, the program is designed to support student choice. (About 13 percent of the recipients attend one of the 17 private, nonprofit colleges or universities that are members of the Minnesota Private College Council.)

What the policymakers can do
The Minnesota Private College Council has recommended that state policymakers nearly double the state’s spending on need-based aid in order to:

• Expand the reach of the state grant program, allowing thousands more middle-income families to be eligible;
• Increase average grant size, which is especially important for the lowest income students; and
• Increase average grants for part-time students, assisting the many students who cannot afford to attend full-time.

Why act now
Legislators will be finalizing their bills on higher education spending in mid-April. They need to hear from those who have benefited from need-based aid, as well as those who support this important program. Given the number of competing ideas that exist for how the state should spend its limited dollars, it is important that we remind lawmakers about the importance of targeting investments in need-based aid.

See our Education Agenda for the Common Good for the need-based aid backgrounder and statements of support.