Minnesota’s New Free Tuition Plan Raises Concerns for North Dakota Universities

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Higher education officials in North Dakota are expressing deep concerns about the potential consequences of Minnesota’s plan to offer free tuition to thousands of its residents attending public colleges and universities. The implementation of the North Star Promise program in Minnesota is expected to result in a significant loss of students and revenue for North Dakota institutions, with estimates suggesting that 15,000 to 20,000 Minnesota students per year may take advantage of the program. In the first year alone, projections indicate a potential combined loss of $8.4 million in tuition and fees for North Dakota schools.

Approximately 1,400 Minnesota students currently attending colleges and universities in North Dakota could become eligible for the new program. The impact of this change is a matter of great concern for education officials, who fear the potential consequences will be catastrophic. During a recent State Board of Higher Education meeting, David Cook, the president of North Dakota State University, emphasized the seriousness of the situation.

Minnesota students currently make up a significant portion of the student body at North Dakota State University, accounting for nearly half of the out-of-state students in their first year. Similarly, they constitute around 40% of first-year students at the University of North Dakota and the North Dakota State College of Science. The potential loss of such a significant number of students from Minnesota could have severe ramifications for these institutions.

The North Star Promise program, set to take effect in the fall of 2024, will cover undergraduate tuition and fees at Minnesota’s public post-secondary schools for students with a family income below $80,000, after other sources of financial aid have been utilized. This program has been viewed positively by individuals like Kari Rod, a resident of Brooklyn Center, Minnesota, who sees it as an opportunity to return to college and complete her degree without incurring additional student loan debt. Additionally, the program offers encouragement for her stepson to consider attending an in-state institution after high school.

The proliferation of free college tuition programs has been observed nationwide, with over half of the states implementing some form of tuition-free initiatives, often incorporating the word “Promise” into their program names. While some states have minimal eligibility requirements, such as income limits, others have merit-based criteria or are restricted to specific schools or majors. Advocates argue that making higher education affordable for all is essential for fostering a skilled workforce and ensuring the competitiveness of the United States in the global market.

In response to Minnesota’s program, Democratic state Sen. Tim Mathern is working on a similar bill for North Dakotans, though he recognizes the challenges that Democrats face in the state’s Republican-dominated Legislature. North Dakota education officials estimate that providing tuition and fees for all students eligible for federal Pell Grants, which amounts to approximately 4,300 students at five schools, would cost over $17.2 million annually.

Unlike North Dakota, neighboring states have not expressed the same level of concern regarding the impact of Minnesota’s free tuition program. The University of Wisconsin is expanding its existing free tuition program, initially launched at its flagship Madison campus, to 12 additional schools starting this fall.

To address the potential consequences of Minnesota’s program on their institutions, the presidents of North Dakota State University and the University of North Dakota are leading a group dedicated to finding solutions. Lawmakers also plan to examine the implications through an interim legislative panel before the next session in 2025.

Republican Rep. Mark Sanford, who chairs the panel, emphasizes the need for a comprehensive response that goes beyond individual states’ actions, considering the various alternative educational delivery methods, shrinking traditional student bases, and workforce issues. Republican House Majority Leader Mike Lefor stresses the importance of developing well-considered policies instead of rushing into decisions.

Despite the challenges posed by Minnesota’s free tuition program, North Dakota University System Chancellor Mark Hagerott remains optimistic, expressing confidence that catastrophic consequences can be avoided with the right approach and response.

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