Minnesota’s Free Tuition Plan Could Lead to Significant Losses for North Dakota Universities

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North Dakota’s academic institutions are expressing concern over the prospect of student and revenue drain once Minnesota implements a free tuition initiative for public colleges and universities in 2024. The free tuition program, known as the North Star Promise, is expected to attract an estimated 15,000 to 20,000 Minnesota students annually.

North Dakota education leaders predict an annual loss of approximately $8.4 million in combined tuition and fees during the initial year under one possible scenario. Furthermore, about 1,400 Minnesota students who are currently enrolled in North Dakota higher education establishments might qualify for the new program.

David Cook, the president of North Dakota State University, expressed grave concern during a recent State Board of Higher Education meeting, stating that the situation carries “catastrophic implications.”

Minnesota students constitute nearly half of the first-year student body at North Dakota State in Fargo, the preferred out-of-state choice for many. In the fall of 2021, they accounted for almost 40% of the freshman students at the University of North Dakota in Grand Forks and North Dakota State College of Science in Wahpeton.

Rod Flanigan, the President of College of Science, remarked on the significant impact this could have on their football team, which is largely comprised of Minnesota students.

The North Star Promise, set to take effect in the fall of 2024, will cover undergraduate tuition and fees for Minnesota students with family incomes below $80,000, after accounting for other sources of financial aid.

The majority of states now offer some sort of free college tuition, according to the Campaign for Free College Tuition. This trend is driven by the necessity of an affordable higher education for all in order to foster a skilled workforce capable of competing in the global economy.

Meanwhile, Democratic state Sen. Tim Mathern is working on a bill similar to Minnesota’s program but designed for North Dakota residents, though he recognizes the challenges in the predominantly Republican legislature.

North Dakota higher education officials anticipate an annual cost exceeding $17.2 million to cover tuition and fees for all students eligible for federal Pell Grants, or about 4,300 students at five institutions.

University leaders from North Dakota State and the University of North Dakota have formed a group to assess and address the potential effects of Minnesota’s free tuition on their schools, already recruiting students for the fall of 2024.

Lawmakers plan to investigate the repercussions through a legislative panel ahead of the next session in 2025.

Republican House Majority Leader Mike Lefor stressed the importance of strategic planning, cautioning against reactionary policy decisions.

This year, North Dakota’s legislature froze tuition for all students statewide for the following two years in an attempt to remain competitive with neighboring states, including Minnesota. North Dakota University System Chancellor Mark Hagerott expressed confidence in the state’s ability to prevent a disaster.

This report was compiled by Karnowski from Minneapolis with assistance from Trisha Ahmed, a Big Big News/Report for America Statehouse News Initiative corps member. Report for America is a national service program that places journalists in local newsrooms to report on under-reported issues.

Frequently Asked Questions (FAQs) about Minnesota’s Free Tuition Plan

More about Minnesota’s Free Tuition Plan

• North Dakota State University
• University of North Dakota
• North Dakota State College of Science
• North Star Promise Program
• Campaign for Free College Tuition
• Federal Pell Grants
• Report for America