If your financial aid package got smaller this fall and you weren't sure why, a likely reason is the Minnesota State Grant. The program, Minnesota's largest need-based aid program with an average award of $3,406 a year, is $131 million short. At least 17,000 students statewide lost their state grant completely. University of Minnesota students saw their aid cut by an average of 30%.
The shortfall was visible months ahead of time. In May, as the legislative session wound down, lawmakers reached a budget deal that left the grant underfunded by $131 million. It was the third year in a row the program came up short. That deal was projected to cut grants by about 38% across the program's roughly 88,000 recipients, with the smallest cuts going to the neediest students. Several things drove demand past the money: enrollment has grown about 6% a year since 2024, the new FAFSA formula found more need among low-income students than expected, tuition keeps rising, and the North Star Promise, which offers free tuition to families earning under $80,000, has been popular. The state's maximum award is calculated from Twin Cities tuition, and UMN leadership opposed changing that formula because it could have cut some students' aid by thousands of dollars.
On campus, the damage is showing up in individual budgets. As of Sept. 5, about 600 of the more than 1,600 people who signed an Undergraduate Student Government petition said their aid had dropped, with a median loss of $4,000. Nate Peterson, executive director of the Office of Student Finance, said the University simply applied the parameters the state set, and that it would have filled the gaps with other aid if that aid existed. He told affected students to contact One Stop Student Services, where counselors can answer questions about individual packages and point students to resources. Fourth-year student Hannah Tinega said that in her final year, she was left "on the bridge of not being able to complete your school year due to financial cuts."
Some students have taken extra jobs or dropped to fewer credits, and some have left school altogether. "For many students, this came out of nowhere, leading to panic and questions," said Robert Granquist, USG's director of student affairs. Third-year student Eleanor Alexander said, "It makes the students feel left behind."
The governor's race hasn't offered a fix. Amy Klobuchar's education proposal is a Skilled Workers and Trades Fund for people working in health care, education and emergency services. Lisa Demuth supports a $1,700 federal tax credit for K-12 schools, which would do nothing for college students. Neither campaign responded to requests for comment. The Legislature cited partisan gridlock, competing priorities and a projected $6 billion state budget deficit when it passed on funding the grant, so whoever wins will be working with very little money.
For now, Granquist's advice is to contact your state legislators, look up where the candidates stand and vote in the midterms. If your package shrank, go to One Stop first to make sure you're getting every dollar you still qualify for.
