MHEC January 2025 News
Happy New Year from all of us at the Midwestern Higher Education Compact!
We're off to a fast start in 2025 with our annual state visits about to kick off. We deeply appreciate the opportunity to travel to our member states to talk with higher education leaders and policy makers about how MHEC is a pivotal partner in strengthening postsecondary education and building a vibrant, qualified workforce.
This edition of MHEC News is packed with stories, information, and resources:
- 2023-24 annual report: A summary of our efforts and accomplishments over the last year
- New research: MHEC'S report shared important insights and potential policy options on the topic of service-contingent financial aid programs
- Dashboard highlight: College participation rates among underrepresented minority groups
- Strategic updates: New cost savings contracts and MHEC's leadership on collaborative solutions related to FAFSA
- Upcoming meetings and convenings: State visits and upcoming webinars
As always, we welcome your feedback and suggestions.
Susan G. Heegaard
President
New MHEC Report Examines State Loan Forgiveness and Conditional Grant Programs
Over the past two decades, student loans have grown to play a significant role in how students pay for college. Today, college graduates have an average loan debt of approximately $35,000, and outstanding student loan debt in the United States exceeds $1.5 trillion (College Board, 2023).
A new January 2025 report from MHEC examines state-funded loan forgiveness and conditional grant programs, designed to alleviate student loan debt and address workforce shortages in high-need fields. These service-contingent programs incentivize graduates to work in targeted occupations or underserved areas in exchange for debt relief.
Research indicates that service-contingent aid programs are effective in recruiting professionals to underserved areas and retaining them beyond the required service period. Conditional grants tend to have a greater impact potentially due to reduced debt aversion and the positive labeling effect associated with grants.
The report offers several policy options for developing and improving service-contingent programs.
MHEC Shares Accomplishments from 2023-2024
We invite you to download and read MHEC's 2023-2024 Annual Report, which shares perspectives from MHEC leadership, a progress report for the organization's three strategic priority areas, a new section on MHEC's impact, a financial overview, and a full list of MHEC's 2023-2024 Commissioners.
Policy & Research
College Participation Rates Among Underrepresented Minority Groups Lag Behind Other Groups
The latest update to MHEC's Interactive Dashboard shows that college participation rates among 18- to 24-year-olds in underrepresented minority groups were lower than those for Asian and White young adults in both the Midwest and across the nation. In the Midwest, participation rates for specific underrepresented groups varied: 40% for American Indians, 54% for Blacks, 57% for Hispanics, and 48% for Pacific Islanders. When combined, the overall college participation rate for underrepresented minorities in the Midwest was 55%, compared to 88% for Asians and 69% for Whites.
This represents a participation gap of 33 percentage points between underrepresented minorities and Asians, and a 14-point gap between underrepresented minorities and Whites in the Midwest.
This indicator measures the percentage of 18- to 24-year-olds who enrolled in college or completed some college coursework, credits, or a credential by race/ethnicity. Estimates are pooled over three years.
Selected participation indicators are also available for MHEC states in the report Higher Education in Focus.
Strategic Updates
Driving Cost Savings and Business Solutions
Student Health Benefits Advisory Committee Seeks Additional Members
The Student Health Benefits Advisory Committee helps MHEC identify regional solutions to student health needs, including exploring needed student physical and mental health contracts and programming and reviewing existing contracts and programming. We're looking to expand this committee to include more student health leaders from across the Midwest. This committee meets virtually throughout the year, with the opportunity for an in-person meeting. To learn more about the committee's purpose and meeting structure, please read Student Health Benefits Advisory Committee Background and Charge.
If you're interested in potentially joining this group of talented senior leaders in shaping the future of MHEC's student health programs and contracts, please contact Breanne Hegg, vice president, at breanneh@mhec.org.
ERP Tech Contracts Awarded
The Midwestern Higher Education Compact (MHEC) is proud to introduce transformative contract awards for the Next Generation Higher Education Enterprise Resource Planning (ERP) System of Systems (MHEC-RFP-04182024). These awards guarantee institutions access to cutting-edge, cost-effective ERP solutions designed to meet the unique demands of higher education. Master Agreements, slated to launch by July 1, 2025, will provide institutions with the resources to implement these systems promptly.
This initiative represents the culmination of two years of collaboration with subject matter experts from across the Midwest. Their insights shaped solutions that not only address ERP challenges but also integrate interconnected systems critical to students, faculty, and staff.
The selected vendors—Oracle, Anthology, ERPA, BerryDunn, Baker Tilly, PTG, and Deloitte—provide tools that enhance operational efficiency, improve student services, and support data-driven decision-making. Institutions leveraging these contracts will save significant time and resources.
Learn more here. For more information and updates, contact Nathan Sorensen, Senior Director of Government Contracts (nathans@mhec.org) or visit MHEC's Next Generation ERP News Page.
Developing Collaborative Solutions to Regional Problems and Opportunities
MHEC Continues Leadership on FAFSA Issues
A key role MHEC provides is as a convener when issues across the Midwest arise. One of those issues is the Free Application for Federal Student Aid (FAFSA). "We knew that there were not a lot of state or regional gatherings about FAFSA completion and the ecosystem around FAFSA," says Jenny Parks, MHEC Vice President, Policy & Research. "We realized MHEC could play a unique and valuable role." MHEC held its first FAFSA Summit in summer 2024, following a troubled roll-out of the program. "We cast a deliberate and wide net to make sure high school counselors and community-based organizations who work with populations most in need of FAFSA got to attend the Summit."
As a result of the successful summit, MHEC agreed to host follow-up, state-specific calls to maintain connections among organizations engaged in FAFSA completion work and to identify strategies to enhance their work. MHEC is exploring additional extensions of this work. To learn more, contact Jenny Parks (jennyp@mhec.org).
MHEC Impacts Federal Rulemaking on Reciprocity Agreements
Feedback from MHEC and other higher education entities led to the removal of multiple contentious provisions in the U. S. Department of Education's proposed rule changes to the State Authorization Reciprocity Agreement (SARA). In December 2024, after conversations during the rulemaking process failed to reach consensus, the Department of Education moved forward to develop its own rules. The new rules would have substantially increased the amount of time and resources institutions would have had to devote to the reciprocity process. MHEC is pleased to have worked with partners to secure these important changes for distance education in MHEC member states.
State Visits & Convenings
Upcoming State Visits
Kansas: January 21-22
Nebraska: January 27-29
North Dakota: February 11-12
Postsecondary Outcomes of High School Dual Enrollment Students: A national and state-by-state analysis
Webinar: February 6, 1:00–2:00 pm CST
REGISTER
Technologies Community Annual Convening
February 26, Big Ten Conference Center, Rosemount, IL
LEARN MORE
Creative Commons Certificate Alumna Angelique Carson Discusses Program and Her Passion for OER Advocacy
Webinar: March 13, 11 am–noon
REGISTER
Commissioner News
Thank You to Outgoing MHEC Commissioners
We thank our outgoing Commissioners for their service to MHEC. The following individuals gave hours of time and expertise that increased MHEC's reach and impact:
Iowa – Rep. Sharon Steckman
Kansas – Sen. Molly Baumgardner
Minnesota – Rep. Gene Pelowski
Nebraska – Sen. Lynne Walz
Ohio – Mr. Jack Hershey
South Dakota – Rep. Tyler Tordsen and Sen. Reynold Nesiba
Wisconsin – Sen. Joan Ballweg
Team Updates
MHEC welcomes Brendan Frazier as our new Compact Intern. Brendan is a third-year student at Concordia University – St. Paul, pursuing a bachelor's degree in sociology with double minors in international relations and political science. He is the president of a student organization focused on community service and communication and serves on the executive board for Concordia’s theater and arts program.
READ MORE
Articles and Resources of Interest
How Did Enrollment Researchers Get It So Wrong?
Inside Higher Education | January 15, 2025
What three ratings agencies project for higher ed in 2025
Inside Higher Ed | December 17, 2024