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Gov. Michelle Lujan Grisham last week signed Senate Bill 159, which creates approximately $1 billion in trust funds and scholarship program funds to make college tuition free in New Mexico for decades to come.
“By establishing this fund, New Mexico is honoring its original promise to make college tuition free for residents and is committed to improving college equity and access,” Lujan Grisham said after signing the bill Tuesday. “We will solidify our position as the country’s leader.” “From early childhood education to college to careers, our significant investments are already making life-changing changes for tens of thousands of New Mexicans and setting an example for every other state.”
With the creation of the Early Childhood Trust Fund through the Land Grant Permanent Fund in 2020, New Mexico became the first state to establish a trust fund for both early childhood and higher education, totaling $32.4 billion for cradle-to-career education. dollars were invested.
With support from the Tax Stabilization Reserve, the Higher Education Trust Fund provides state financial aid programs, including Opportunity Scholarships and Lottery Scholarships, to eligible students, even in years when state funding is low. We will continue to be able to support you with the full tuition fees. The $959 million investment will generate interest income in the future. An initial distribution of $47.95 million will be made to the program fund in his 25th fiscal year.
New Mexico has the largest dedicated trust fund for higher education among states, followed by Tennessee with about $775 million, and New Jersey and Alaska both with about $400 million. He is one of only seven other states to have established a higher education trust fund.
“The Higher Education Trust Fund will allow New Mexicans to continue attending college tuition-free for years to come, while also maintaining healthy reserves in the state’s Tax Stabilization Reserve Fund. “Current and future students rely on these scholarships to further their education, and our state’s future depends on the ability of our more educated residents to enter the workforce and support their families.” said Sen. Pete Campos.
In 2022, the governor signed the Opportunity Scholarship Act into law, creating the most comprehensive tuition-free college program in the country. Since then, the program has been fully funded every year, and in fiscal year he was allocated $25 million.
A record 42,379 New Mexicans have received this scholarship, including more than 10,000 students attending college during the summer. According to a study conducted by the New Mexico Department of Higher Education, the number of students completing short-term career training certificates has increased by 39% since the program began, and students who receive Opportunity Scholarships are more likely to attend school than those who do not. It has been shown that they are 8% more likely to stay. that. Most Opportunity Scholarship recipients are Hispanic, identify as female, are under the age of 24, and are eligible to receive federal need-based Pell Grants.
Initial numbers for the spring 2024 semester submitted to the New Mexico Department of Higher Education show enrollment increased by nearly 4%, outpacing the fall semester’s increase. Overall, New Mexico’s college enrollment increased by more than 7% from 2021, the year before the program began.
Established in 1996 as the nation’s first tuition-free college program, Lottery Scholarships continue to cover the full cost of tuition for approximately 10,000 students each year. In 2016, due to the state’s economic downturn, tuition fees eligible for lottery scholarships were reduced to an average of 60%. Lujan Grisham restored lottery scholarships to 100% of tuition in 2021 with an infusion of federal funds.
Students who receive lottery scholarships for six or more semesters are successful, with more than 86 percent earning a degree or certificate, according to data compiled by the New Mexico Department of Higher Education.
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