Higher Education Department Announces Expansion of Funding, Eligibility
SANTA FE, NM – The New Mexico Higher Education Department has announced that the Opportunity Scholarship program will be expanded to include students pursuing bachelor’s degrees, pending support by the Legislature this session.
"Expanding access to college education will help thousands of people get ahead by preparing them for better paying jobs," said Governor Michelle Lujan Grisham. "By removing barriers to getting a college education, the New Mexico Opportunity Scholarship creates lifelong benefits for many New Mexicans, supports our economic recovery and paves the way for a more prosperous future for us all."
The expanded recommendation includes $46 million to cover the cost of tuition and fees for returning adult learners and recent high school graduates pursuing a degree or certificate at any of New Mexico’s public and Tribal colleges and universities. The updated recommendation restores the Opportunity Scholarship to the amount and scope originally proposed by Governor Lujan Grisham’s administration during the 2020 Legislative Session, and would support an estimated up to 50,000 New Mexico students, or around half of the currently enrolled population.
“There is great demonstrated need for the Opportunity Scholarship and we have received strong support from stakeholders and members of the public about expanding tuition-free college in New Mexico,” Acting Higher Education Department Secretary Stephanie Rodriguez said. “New Mexico was the first state in the country to afford residents this benefit, and we look forward to ensuring that affordable higher education becomes a reality for even more students, especially as we look toward a post-COVID future.”
Lawmakers are seeking to permanently establish the program via S.B. 135, Opportunity Scholarship Act. The bill would create a fund to make college education affordable for more New Mexicans, a key priority of Gov. Michelle Lujan Grisham. The Act also reduces the minimum credit hour requirement for returning adult learners from 12 credit hours to six. The New Mexico Senate Education Committee recommended “do pass” for the legislation on Monday. The bill will go before the Senate Finance Committee this month before heading to a vote on the Senate floor.
Consensus revenue estimates released last week show that state revenues rose $192 million from the December 2020 estimate, due primarily to recovering oil prices and a more positive economic outlook following the distribution of COVID-19 vaccines. The Higher Education Department estimates that New Mexicans could experience a return on investment from the scholarship program of about $175 million via income tax contributions, GRT, and public assistance savings for up to 50,000 college graduates.
Following the 2020 Special Session, funding for the scholarship was reduced to $10 million and eligibility criteria was scaled back to students pursuing two-year degrees fulltime. The Higher Education Department reports that nearly 5,000 students benefitted during the Fall 2020 semester.
While New Mexico’s Lottery Scholarship has seen success during its 24-year history in helping students access and complete a college education, non-traditional students such as those who start school later in life, attend part-time, or experience interruptions in their education, may not qualify.
The Opportunity Scholarship covers up to the full amount of tuition and fees for a student, and allows federal and institutional aid to be applied above and beyond that amount in the financial aid package. This means that other aid, such as Pell grants, can be used for other expenses including transportation and childcare, which can often stand in the way of completing a degree, particularly for non-traditional and low-income students.