Bill seeking to expand college grant program faces funding challenge

With the goal of making higher education more accessible to everyone, a new scholarship program was presented to the House Higher Education Policy and Finance Committee on Tuesday.

Laid over for possible omnibus bill inclusion, HF2090 would create the State Grant Plus scholarship, and increase the default living and miscellaneous expense allowance for the State Grant Program from 115% to 121% of federal poverty guidelines, creating two working groups to study higher education funding and providing funding for the Minnesota Education Equity Partnership.

Rep. Cedrick Frazier (DFL-New Hope), the bill sponsor, said the bill would make higher education more affordable and equitable for all students while expanding student financial aid support.

“Together, these initiatives remove financial barriers, support student success and strengthen the future of higher education in Minnesota,” Frazier said. “By investing in students today the state is laying the foundation for a stronger, more prosperous future for all Minnesotans.”

To be eligible for the State Grant Plus scholarship, students must receive a state grant award, not be eligible for a North Star Promise scholarship, and attend a Minnesota public, tribal, or private non-profit institution.

The award would be for 25% of the student’s state grant award, and they could receive the scholarship for up to four semesters for a certificate or associate’s degree, and up to eight semesters for a bachelor’s degree.

“Investing in higher education in ways that better support students and systems is a moral and economic imperative for our state,” said Jon Peterson, senior fellow and policy director at Minnesota Education Equity Partnership. “Despite the current fiscal realities that we are facing, it's critically important that we continue to invest in higher ed.”

Creating the new scholarship could be a tough sell considering that the Office of Higher Education grant program has a $232 million deficit.

Rep. Marion Rarick (R-Maple Lake), the committee co-chair, said the governor's budget proposal would decrease the living and miscellaneous expense allowance to 110% while this bill would increase it to 121%, which adds another $36 million to the grant fund.

Frazier is cognizant of the grant fund deficit but wants to make sure everybody has access to the higher education system because it makes the state better.

“The purpose of this bill is to uplift the importance of higher education in Minnesota and reduce disparities in college completion,” Peterson said.