College students receiving Minnesota State Grants to receive an additional $200 this year to help pay for school costs
State of Minnesota to release more funding for direct financial aid, saving students hundreds of dollars on tuition
ST. PAUL, MN – Lt. Governor Tina Smith and Higher Education Commissioner Larry Pogemiller announced today that an estimated 95,000 Minnesota students will receive hundreds of dollars more in direct financial aid in the upcoming 2016-17 school year. State law authorizes the Minnesota Office of Higher Education (OHE) to release the spending balance in the Minnesota State Grant Program, bringing a grant increase of $200 to tens of thousands of Minnesota students.
“Today, the average Minnesota student is graduating with over $31,500 in debt. That is too much,” said Lt. Governor Smith. “This increase in State Grant awards will provide direct tuition relief to tens of thousands of hard-working students.”
This year’s surplus in the State Grant Program spending balance is largely due to lower than expected college enrollment numbers at public colleges and universities and recent increases in the federal Pell grant program.
“Expenses such as books and transportation can extend well beyond the poverty-level living standard recognized by the State Grant program,” said Commissioner Pogemiller. “We are committed to sending all available resources back to students in the form of increased grants.”
The Minnesota State Grant program is the largest financial aid program funded by the state, awarding up to $180 million in need-based grants to as many as 100,000 Minnesota residents attending eligible colleges and universities in Minnesota. Its Shared Responsibility model recognizes both the private and public benefit of higher education, and asks students, families and the state to share in the cost.
Minnesota students who are eligible for the increases in State Grant funding do not need to do anything; the award increases will roll over automatically into their overall Grant awards in the upcoming school year. Minnesota students who do not currently receive a State Grant, and would like to apply, should
visit the Office of Higher Education website to determine whether they are eligible for benefits.
Recent Increases in State Grand Funding
Over the last five years, Governor Dayton and the Minnesota Legislature have invested an additional $125 million in the Minnesota State Grant program, providing more direct financial aid and expanding eligibility for more than 17,000 Minnesota students. Funding increases for the State Grant program championed by the Governor since 2011 have increased State Grant awards by an average of $507, with some students getting as much as $1,470 more in direct financial aid.
Prior to these new investments in the Minnesota State Grant program, state financial assistance had not keep pace with rising tuitions and the other increased costs of post-secondary education.
Helping Graduates Refinance Their Student Loans
Right now, Minnesota ranks fifth-highest in the nation for student loan debt. In January, Lt. Governor Smith and Commissioner Pogemiller
announced a new student loan refinancing program that allows college graduates to save hundreds of dollars on their student loan payments every month. The new SELF Refi program was authorized by the Governor Dayton and the Minnesota Legislature, and helps eligible borrowers manage and reduce their student debt by refinancing their debt at a lower rate.
To be eligible for the SELF Refi program, borrowers must be a Minnesota resident, have completed at least one postsecondary credentialed program, and either meet certain credit criteria or have a credit-worthy cosigner. It is anticipated that the majority of all student loans will qualify. More information on the SELF Refi program, and how to refinance your student loans through this new initiative, is available at:
www.selfrefi.state.mn.us.
