Minnesota lawmakers managed last month not only to close a $239 million deficit in the state’s largest financial aid grant program, but also to increase its funding by $44.5 million over the next two years. But they did so by changing the funding formula, meaning some students may still find themselves with less aid for college, The Minnesota Star Tribune reported Tuesday.
The Minnesota State Grant program helps middle- and low-income students enrolled at in-state technical schools, colleges or universities pay for educational expenses, such as housing and tuition. While not every student’s financial aid award will decrease this year, many are still waiting to find out how the changes to the formula will change their award.
The amount each student receives is tied to their family size and income, and during the 2025–26 academic year grant values are expected to range from $100 to $17,717. Last year, average grants awards were cut by anywhere from $175 to $730 to offset the program’s then-$40 million deficit.
According to The Star Tribune, changes to the formula include:
- Students can receive the grant for four years of full-time attendance, down from the previous six-year cap.
- Students who are dependents are responsible for paying an increased total cost of college.
- There is an earlier application deadline.
- Students will receive less money for living and miscellaneous expenses, such as room, board and transportation.
- There is a reduced maximum amount awarded for tuition and fees to match the University of Minnesota’s Twin Cities’s rates, plus 2 percent for each of the next two years, regardless of how much tuition increases there. If a student attends a school that costs less, they are awarded the average cost of tuition and fees at that institution.
Republican state senator Zach Duckworth said some of the changes are temporary. “I don’t think anybody was entirely happy with the end results, but the fact that we were able to increase some funding [to the State Grant overall] for students and families was a good thing,” he told The Star Tribune.
The changes come as Congress is also weighing President Donald Trump’s proposal to cut TRIO, federal work-study and other federal programs that support college students.
(This story has been updated to correct the details of the reduced maximum amount.)
