There was some good news from the Legislature for the 90,000 Minnesota college students who rely on the Minnesota State Grant program to afford college. To help address increased demand and a projected shortfall in the program, funding was increased by $21 million or 7.3% for the upcoming biennium. This helps to meet the additional need for student financial aid created by the recession, even though a shortfall of approximately $10 million remains. That means that the grants for this year and for the fall of 2012 will remain smaller than what is called for under state statute. Read the full story.

Changes to federal financial aid are on the horizon as well. Both the House and Senate appropriations committees have proposed preserving a maximum Pell Grant of $5,500 in 2012, while making other cuts to the program. The House proposal would end Pell Grants for students who attend college less than half-time and could be used for only 12 semesters instead of 18. The Senate proposal eliminates the six-month grace period on interest payments on subsidized student loans, but doesn't change Pell eligibility rules. Check Student Aid Alliance for the latest developments.