Minnesota community colleges use federal COVID funds to pay off student debts

Several Minnesota community colleges are using federal stimulus dollars to forgive the debts of students who owe them money for tuition, fees, books or supplies.

Just this week, Rochester Community and Technical College announced it used about $785,000 in federal COVID-19 relief funds to pay off 638 students' unpaid balances. Minnesota State College Southeast, which has campuses in Red Wing and Winona, said it used more than $400,000 to clear the debts of 339 students.

"We hope that this action makes a positive impact as we collectively work our way out of the pandemic," MSC Southeast President Marsha Danielson said Thursday.

The average debt cleared for MSC Southeast students was $1,200. Students whose unpaid balances had prevented them from enrolling this fall are now eligible to register for classes.

Rochester Community and Technical College forgave individual student debts of up to $3,000.

The U.S. Department of Education has encouraged colleges to use federal relief funds to forgive unpaid balances, recognizing that many students lost their jobs or had work hours cut during the pandemic.

Colleges have used federal stimulus funds to distribute emergency grants to students throughout the pandemic. MSC Southeast administrators said they will continue to do so this fall, prioritizing students with the greatest financial need.

Other state schools that have used COVID relief funds to pay off students' balances include Normandale Community College, Bloomington; Hennepin Technical College, Brooklyn Park and Eden Prairie; Central Lakes College, Brainerd and Staples; Dakota County Technical College, Rosemount; Inver Hills Community College, Inver Grove Heights; South Central College, Faribault and North Mankato; and Minnesota State Community and Technical College, with campuses in Detroit Lakes, Fergus Falls, Moorhead and Wadena.

Both Normandale and Minnesota State Community and Technical College spent $1 million on forgiving students' debts. Hennepin Technical College also used nearly $1 million to clear the tuition debt of almost 1,400 students, most of whom owed less than $1,000.

"By using federal funds to eliminate tuition debt, we are hoping students will be encouraged to complete their educational goals which are essential for students to enter in-demand careers," Joe Wightkin, Hennepin Technical College's vice president of finance and operations, said in a statement.

Students with outstanding debt may put their college educations on hold or drop out if they cannot afford to pay it off, said Mike Dean, executive director of the community college student association LeadMN. The debt forgiveness offered by these colleges will "provide immense benefit for those students who really struggled from the pandemic," he said.

Minnesota state colleges should continue to use federal money to address pressing needs, Dean said. He urged them to launch robust public awareness campaigns encouraging students to get vaccinated against COVID. He also said colleges should consider tuition refunds for students forced to drop out because of COVID infection or other illnesses, giving them a chance to return at no extra cost.

Ryan Faircloth • 612-673-4234

Twitter: @ryanfaircloth