A program to make college tuition more affordable to Minnesota students from working-class families has helped boost enrollment in both state systems in its first year.

The number of students benefiting from the North Star Promise program, which was created by the Legislature in 2023 and took effect this fall, has also exceeded state projections.

“That’s why I came back to school,” said Domonique White, 35, a senior at Metropolitan State University in St. Paul. “This scholarship gave me a way to finish something I started so long ago.”

Officials say the program is one reason enrollment at the University of Minnesota and Minnesota State systems is up, reversing several years of declines at public colleges across the state brought on partly by Minnesota’s falling birth rate.

In the Minnesota State system, officials said enrollment had jumped 7% compared with last year. In the University of Minnesota system, enrollment is up about 2.5%.

“This is a popular program that’s working,” said state Sen. Omar Fateh, DFL-Minneapolis, chair of the Senate’s higher education committee and a leading proponent of North Star Promise. “We knew that [for] a lot of our students that would like to go to college, it simply was not an option. They were being priced out; they didn’t want to go into debt.”

State officials had estimated 11,000 to 20,000 students would use the program, but as of late September, 16,711 had taken advantage of it, according to the Office of Higher Education.

The program will cost about $117 million this fiscal year. That includes the cost of North Star Promise Plus, which helps pay for books, housing, food and other expenses for low-income students who receive federal Pell grants. In subsequent years, the program will be funded at $49.5 million annually through 2027.

Dennis Olson, commissioner of the Office of Higher Education, said early numbers have “certainly exceeded” estimates.

“It’s really exciting to hear some of the anecdotal stories from students starting to come in as well about the impact [that North Star Promise aid] has had early on in their decision,” he said.

The program’s flexibility is “the most exciting piece” because students can still work and go to school, he said.

Tribal colleges haven’t finalized enrollment data yet, Olson said, but he doesn’t expect totals to change dramatically once they’re submitted.

Olson said numbers are especially impressive considering the difficulties last year related to rolling out the new Free Application for Student Aid (FAFSA), the federal form students must complete to receive financial aid.

University of Minnesota and Minnesota State officials said they were thrilled with North Star Promise and its effect on students so far.

The program covers whatever costs aren’t met by a student’s other scholarships and aid. Students must pay for room and board and books.

Paul Shepherd, associate vice chancellor for student affairs and enrollment at Minnesota State, said about 12,990 students received North Star Promise funding as part of their financial aid package; about 12,000 of those students are enrolled in classes now.

Shepherd stopped short of saying the system’s 7% enrollment increase could be attributed to the program. But he said it “certainly stands to reason” that it had an impact. Other initiatives, such as the Minnesota State tuition freeze and workforce development scholarships may have also helped, he said.

Students at community and technical colleges averaged awards of $1,500; those at universities saw about $1,600 each. Shepherd said it’s great that eligibility can be determined from FAFSA data because extra paperwork can be a barrier for students.

Nate Peterson, director of the Office of Student Finance at the University of Minnesota-Twin Cities, called North Star Promise a “safety net” that will help with recruiting and retaining students. As of Sept. 25, about 2,900 students on the Twin Cities campuses got North Star Promise scholarships. That aid totaled $6.2 million, or about $2,250 per student, he said.

Mike Dean, executive director of the nonprofit North Star Prosperity, said the program is a win for students, families and employers at a time when people are questioning the value of higher education. Anecdotally, he said, he’s heard the program has encouraged many adults with some college to sign up for classes again.

“If the North Star Promise can bring some of those students back and help them cross the finish line, that is a huge boon to the economy overall,” he said.

Marie Kuhlman, 46, attended college before but hadn’t finished her associates degree; now, she’s on track to graduate from Century College in White Bear Lake with two degrees this spring, she said.

“What it did for me was pay all but $300 of my balance [for books],” she said. “It was a huge deal.”

Many people involved with making the North Star Promise happen already hope to expand it to include other groups.

Dean, who previously was the executive director of LeadMN, a statewide association of community and technical college students, said he’d like to see a version of the program that helps students from families with higher incomes, rather than just the current “cliff” that cuts off at $80,000.

Students at private, nonprofit colleges don’t qualify for North Star Promise scholarships, and that’s a fairness issue, said Paul Cerkvenik, president of the Minnesota Private College Council.

“The state should treat all students with financial aid needs the same,” he said, adding that the association’s 18 institutions serve about 39,000 students, enrolling about 36% of Minnesota’s high school graduates each year.

Though private college students can receive a Minnesota State Grant, the program had a $40 million shortfall last year; students’ financial aid awards across the state were reduced — some dramatically — at the last minute, Cerkvenik said.

North Star Promise has had a ripple effect. with other states and private colleges creating their own versions. North Dakota State University, for instance, is giving North Dakota and Minnesota students who are eligible for Pell grants and have incomes of $80,000 or less free tuition and fees for their first and second years of college.

At Concordia College in Moorhead, a private institution, officials have created their own program to compete with North Star Promise; families making up to $90,000 qualify. This is the program’s first year — and new student enrollment is up 28%, said Ben Iverson, Concordia’s vice president for enrollment, who credited Concordia Promise with playing a big role in the enrollment bump.

The program also helped the school “change the narrative around affordability when it comes to private higher education,” he said.

But there’s still work to do. Olson said he wishes the state had more resources to promote North Star Promise to people who haven’t heard of it. “For many, it’s been nothing short of life-changing, honestly,” he said.