Stay Curious. Stay Connected.
MailNewsletters♡Donate Now
Sign up
*Password must be at least 8 characters and contain one uppercase letter, one lowercase letter, one number and one symbol.
Already have an account?
By submitting, you consent that you are at least 18 years of age and to receive information about MPR's or APMG entities' programs and offerings. The personally identifying information you provide will not be sold, shared, or used for purposes other than to communicate with you about MPR, APMG entities, and its sponsors. You may opt-out at any time clicking the unsubscribe link at the bottom of any email communication. View our Privacy Policy.
Sign in to your profile
Forgot Password?
New to MPR News?
Welcome back
to news
for you
Reset Password

Enter the username on file and we'll send you a code to reset your password.

Still require assistance or not sure what your User Name is?
Welcome back
to news
for you
Email Verification

A verification code has been emailed to

Still awaiting the code?
On Campus Blog
Alex Friedrich

State Grant bouncing back after years of decline

Go Deeper.

Create an account or log in to save stories.

Log inCreate a free Account

Like this?

Thanks for liking this story! We have added it to a list of your favorite stories.

Show me!
dollar-wrinkled
On the mend (MoneyBlogNewz via Flickr)

After several years of stagnation and cuts, it appears the state's main source of financial aid is on the rebound.

The Minnesota Office of Higher Education estimates that college students next year should receive an average of $200  more in their State Grant awards, a 12 percent increase.

That's twice the 6 percent growth the award saw this year -- and a far cry from the cuts seen during the recession.

"We should see stability from here on out," said State Grant analyst Meredith Fergus.

The State Grant slump began after a peak in the 2006-2007 academic year. That's when the average award was $1,947. The next few years saw steady declines until the award hit a low point of $1,349 in 2011.

This year, the average award stands at $1,624 -- a rise of about 6 percent over last year.

That increase was made possible last session when the Legislature raised the State Grant appropriation by $47 million over the biennium. State higher-ed officials welcomed the boost -- calling it the largest in a decade -- after years of largely flat funding.

Next year's larger awards are due in large part to declining college enrollment, Fergus said.

During the recession, people flocked to colleges and universities, causing double-digit enrollment growth at some campuses.

Many of those new students applied for the grant, which strained state resources. State officials reduced the grant in a couple of years so they could spread the limited money among more people.

In the past year or two, however, enrollment has declined by a few percent on average as students finished their degrees or jumped into the job market.

"When fewer students enroll in college, fewer students apply for the award," Fergus said. "Therefore, we distribute the same pot of money to fewer students."

From here on, she said, the State Grant should see smoother sailing.

"Enrollments will start to stabilize, and we won't see huge declines or huge increases," Fergus said. "And once we see stability in enrollments again, then spending will stabilize."