Mon 15 Mar 2010
Terry Morrow Warns of Minnesota State Grant Deficit
Posted by Terry Morrow under Around the DistrictNo Comments
The simple, disturbing fact: tens of thousands of Minnesota college students are at risk of losing significant state financial aid. For many, the cut could jeopardize their return to school in the fall. As a college professor— and as a state legislator— I believe it’s my duty to share this information with you.
The Minnesota State Grant Program, which currently provides aid to over 80,000 Minnesota college students, faces a $42 million deficit. Minnesota students from low and middle-income families attending two or four-year public or private colleges or universities are eligible for grants. State Grant awards average almost $1,700 per year. About 90 percent of students receiving aid come from families with incomes under $60,000.
What caused the $42 million deficit? In 2009, Minnesota saw a 20 percent increase in students who applied and qualified for a State Grant. This was in large part due to the economy— family incomes decreased, unemployment increased, and more students enrolled in school. More students needed aid. The Minnesota Office of Higher Education (OHE) used its entire $145 million State Grant budget and borrowed from next year’s budget to meet the current need. (more…)

