State’s college financial aid programs undergo alterations

The Office of Higher Education is responsible for administering Minnesota’s grant and loan programs for postsecondary students. A new law makes some changes to the state’s programs.

Rep. Gene Pelowski, Jr. (DFL-Winona) and Sen. Omar Fateh (DFL-Mpls) sponsor the law that takes effect Aug. 1, 2023.

One change is altering Minnesota’s higher education attainment goal statute — which calls for 70% of Minnesotans aged 25 to 44 to have a postsecondary credential — to include workforce training credentials. The Department of Labor and Industry will assist in estimating the number of industry-recognized credentials in the state.

Two changes to the state grant program are in the law: To attain eligibility, students must not have been convicted of fraud in attaining Title IV funds, and an institution’s data need only include student enrollment and state and financial aid if it is eligible to receive state financial aid or SELF Loans.

Private colleges that wish to opt out of the state’s Fostering Independence grant program must continue providing benefits to enrolled students currently receiving them.

Tribal colleges will be defined in statute and added to the definition of “school,” and they will be exempt from the requirements of the Private and Out-Of-State Public Postsecondary Education Act. The law also clarifies that schools exempt from that act’s requirements are also exempt from those of the Private Career School Act.

Grant funds will be used to recruit, prepare, and support students currently underrepresented in the state’s concurrent enrollment programs.

Eligibility for mineral research scholarships is altered to remove Mesabi Range Community and Technical College and add University of Minnesota programs at the university’s Duluth campus and Minnesota North College — a cooperative of six community colleges. Allowable grant amounts are also increased and students from Minnesota Economic Development Region 3 are given priority to receive them.

And rules are repealed regarding application deadlines for the state grant program, as well as the licensure of private career schools.

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