No aid cut for private schools

A proposal to cut financial aid for students at private, for-profit colleges was defeated by a House division.

HF1414, sponsored by Rep. Karla Bigham (DFL-Cottage Grove), would have made students at schools like Rasmussen College and Globe University/Minnesota School of Business ineligible to receive money through the state grant program.

Grants to students at for-profit schools currently account for more than $20 million annually. Bigham said the bill would redirect that money to students at public colleges and universities and also private nonprofit schools like Macalester College and Hamline University.

During a March 17 hearing of the House Higher Education and Workforce Development Finance and Policy Division, supporters argued it makes sense for the state to prioritize funding for public and nonprofit schools during a budget crisis.

Graeme Allen, government relations director for the Minnesota State University Student Association, said that while half of U.S. states spend 75 percent or more of their financial aid funds on students at public institutions, Minnesota only spends 61 percent. He said Minnesota also ranks third in the nation in providing financial aid to students at for-profit schools.

“In a time of declining investment in higher education, especially for our publicly funded institutions, should we be funding those attending for-profit institutions?” Allen said.

That didn’t sway opponents, who said the bill would unfairly take away options from students who are merely choosing the education they think will work best for them.

“I really believe that we need to support all forms of education in the state of Minnesota, and not just limit it to the state institutions,” said Rep. Bob Dettmer (R-Forest Lake).

Sen. John Marty (DFL-Roseville) sponsors the companion, SF1361, which awaits action by the Senate Higher Education Budget and Policy Division.