Better Economic Outcomes for Graduates of Two-Year College Programs
SANTA FE, NM – Lawmakers are seeking to permanently establish the New Mexico Opportunity Scholarship and create a fund to make college education affordable for more New Mexicans during the 2021 legislative session, key priorities of Gov. Michelle Lujan Grisham.
The Opportunity Scholarship, which was created and initially funded during the 2020 session, provided $10 million towards tuition and fee assistance for eligible New Mexico students pursuing two-year degrees at any public or Tribal college or university in the state. This year’s legislation accompanies a $22 million executive recommendation for complete tuition support for up to 30,000 two-year New Mexico students, and reduces the minimum number of credit hours a student must take to qualify for the scholarship from 12 to six.
The Act also expands the scholarship to students attending four-year colleges and universities, starting with a $4 million pilot project targeting students who previously lost eligibility for the Lottery Scholarship, but have one or two semesters left to complete a degree.
“We introduced the Opportunity Scholarship last year because we knew the importance of ensuring every New Mexican can access an affordable college education,” Acting Higher Education Secretary Stephanie Rodriguez said. “This year, the pandemic and the subsequent challenges faced by New Mexico families and our economy underscore the need for the Opportunity Scholarship to help our citizens train for family-sustaining careers and diversify our state economy.”
While New Mexico’s Legislative 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.
“New Mexico’s financial aid programs are the envy of many states, and remain remarkable in the access they provide to higher education for many of our students that otherwise would be shut out of such an opportunity,” Opportunity Scholarship Act co-sponsor Sen. Bill O’Neill said. “This bill expands eligibility to these students while at the same time creating financial stability for the program by creating a scholarship fund. It is an important bill, and I Iook forward to making the case for its passage along with my House Co-Sponsor Joy Garratt."
“Now more than ever, the Opportunity Scholarship meets New Mexicans right where they are and helps them fund whatever kind of career training they seek,” bill co-sponsor Rep. Joy Garratt said. “And better yet, whether someone’s education has been interrupted by COVID, family situations, or job changes, this scholarship gives them that second chance to continue their education.”
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 aid such as Pell grants can be used for expenses such as transportation and childcare, which can stand in the way of completing a degree, particularly for nontraditional and low-income students.
The Higher Education Department estimates that New Mexicans could experience a return on investment from the scholarship program of about $150 million via income tax contributions, GRT, and public assistance savings for 30,000 college graduates. According to a 2019 College Board report, median earnings for individuals with associate degrees working full time were 24% higher than for those with only a high school diploma, and unemployment rates were 2.8% for associate degree holders, and 4.1% for those with a high school diploma.