Restrictions to student aid and scaled back research grants could add up to double trouble for students and colleges in New Mexico next year, the state’s secretary of higher education warned legislators last Friday.
The changes, some of which were included in the One Big Beautiful Bill Act, include the scaling back of some repayment options and subsidized loans and tighter borrowing rules for students, as well as more than $120 million in lost federal funding for New Mexico colleges and universities implemented by the Trump administration so far this year.
Student aid restrictions target graduate students
State Higher Education Secretary Stephanie Rodriguez told the Indian Affairs Committee on Friday that while state efforts, such as the Lottery and Opportunity Scholarships, are available to cover the cost of tuition and fee waivers for most college students, those seeking graduate degrees will face challenges.
“There are going to be caps on loans with low interest rates for graduate students to complete grad school, meaning that they’re going to have to pull out private loans with especially high interest rates,” Rodriguez said. She noted that it will be tough not only for students seeking to finish medical school or law school, but all graduate students who, on average, complete school with anywhere between $150,000 and $200,000 of debt.
Rodriguez warned those new measures could negatively impact enrollment and graduation rates.
“We’re the only state in the country to see enrollment increases now four years in a row, but if we do lose our graduate students, those numbers can be impacted,” she said.
Colleges and universities under pressure
Lower student aid and enrollment could also put additional budget pressures on New Mexico colleges and universities who are already facing about $123 million in federal funding cuts in the current calendar year.
“Across the board, we’re seeing a decrease and cut of $122.9 million,” Rodriguez said. As of Oct. 31, those cuts in the current calendar year were due to grant cancellations, stop-work orders, project delays and terminations or program suspensions brought on by the federal government.
Of that funding, $94.5 million was from federal support to New Mexico’s four research universities, including $60.8 million in energy technology research grants and $10.82 million from the National Science Foundation. Branch community colleges lost $14.12 million, independent community colleges and $5.69 million.
Two in-state tribal colleges and universities have reported lost funding of $4.5 million, including $3.7 million in diversity, equity and inclusion, or DEI, grants, at Navajo Technical University in Crownpoint.
Rodriguez said over the summer the Trump administration considered slashing funding to the nation’s tribal colleges by as much as 90%, which would have forced many of them to close, but the final federal budget maintained current levels, for now.