2 weeks Ago By Rochester Post Bulletin Editorial Board
About one year ago, media outlets across the state began publishing news stories about the success of Minnesota's new “universal” meals program that provided free breakfast and lunch for all Minnesota K-12 students, regardless of income. It was a “good news, bad news” situation. The program — approved when Minnesota had a $17 billion budget surplus — proved instantly popular, with thousands more kids showing up for a free breakfast and/or lunch every day.
That was good, but the projected two-year cost of the program immediately soared by $81 million over what had been expected. Given that there had been some Republican resistance to this idea in 2023, we won't be surprised to see some serious debate about the program's cost next year — especially if control of the House or Senate flips to the GOP. In that same vein, it appears possible Minnesota could soon face another “good news, bad news” budgetary debate, this time about the North Star Promise scholarship program.
This new program, signed into law in May 2023 and also funded by that massive budget surplus, covers tuition and fees at Minnesota public undergraduate colleges, universities and community colleges for Minnesota residents whose annual family income is below $80,000. Applicants must apply for federal financial aid, and North Star Promise covers tuition and fees that remain after all other grants and scholarships are applied. The program has been in effect for just a few months, and its impact already has exceeded expectations.
At (Ridgewater College, enrollment was up an 11% increase in the summer and fall sessions of 2024), Rochester Community and Technical College, enrollment is up 10.4%. Minnesota State College Southeast campuses in Red Wing and Winona are up 14.
3%, and Riverland Technical College in Austin is up 15%. At Winona State, overall enrollment is down 0.2%, but the freshman class is up 4.
3% over last year, and the transfer student population is up 8%. Overall, enrollment in the Minnesota State system is up 7%, and in the University of Minnesota system, it's up 2%. As of late September, 16,711 students had received a North Star Promise scholarship.
This is great news. Minnesota has invested billions of dollars in public higher-education facilities across the state, and fuller classrooms at these sites will increase the return on those investments. That return will be in the form of welders, electricians, carpenters, veterinary technicians, teachers, nurses, auto mechanics, HVAC technicians and dozens of other areas of need in Minnesota's workforce.
At the moment, no one is sounding any alarms about the future cost of this program, and annual funding of $49.5 million is secure through 2027. Still, if more and more students apply — including a possible influx of non-traditional, older students — we could soon see the growing cost of North Star Promise become a hot topic for legislators, especially if the state's finances take a turn for the worse.
That's why it's crucial for Minnesota to develop and implement a plan to track the progress and success of students who receive this scholarship. When the program comes up for renewal, decision-makers need to know how many NSPS recipients are earning degrees. They need to know what jobs they are getting when they leave school, how much student loan debt they have incurred, how much they are earning, and whether they are staying in Minnesota.
It's entirely possible that two or three years from now, Minnesota will learn that this scholarship program is paying enormous dividends and should be expanded to include more students, perhaps including families who earn up to $100,000 per year. Maybe a sliding scale should come into play for families above that threshold, so that students from higher-income families can get at least a partial North Star Promise scholarship. That's the kind of outcome we're hoping for, because Minnesota has a workforce crisis, especially in the skilled trades.
While we're finally moving past the long-entrenched belief that a four-year degree is the only route to occupational and financial success, our lower-income young people still need help paying for post-secondary training that will qualify them for jobs that pay more than an almost-livable wage. Yes, that “help” costs taxpayer dollars, but the whole concept of state-subsidized higher education is based on the belief that today's young people are tomorrow's workers, earners, leaders — and taxpayers. Given the right educational opportunities, they'll be the ones buying vehicles and houses, and raising families.
Right now, far too many Minnesotans can't afford kids, cars or homes because of student loan debt. The numbers are grim: 775,000 Minnesotans have student loans, with an average balance of $34,292. The average monthly payment is $354, which means a lot of two-earner households are paying roughly $8,500 per year.
And here's the real kicker: The typical borrower will make student loan payments for 21 years. Attempts to “forgive” federal student loans have made a lot of headlines in the past couple of years, and we're not entirely opposed to such efforts, but wouldn't it be better to simply make college more affordable on the front end? We're pleased that Minnesota has taken an aggressive step in that direction, but we shouldn't rely on anecdotal evidence to decide whether North Star Promise succeeds or fails..
