Mississippi faces a $7.3 million financial aid deficit that could reduce awards for as many as 27,000 students in spring 2027, Mississippi Today reported. State aid officials attributed the gap to a 2025 distribution change that broadened eligibility from students taking at least 15 credits to those taking 12 or more. Lawmakers also raised the income threshold for the state’s Higher Education Legislative Plan, a need-based grant. The changes, alongside simplified FAFSA requirements, increased applications and expanded the number of students qualifying for state aid. Without additional funding, Mississippi may need to limit access to scholarships for former foster youth and potentially decrease award amounts for other grants. The problem fits a wider pattern of states struggling to sustain grant and scholarship budgets as policies expand eligibility and student FAFSA participation improves. Financial aid leaders across states will be watching for whether Mississippi pursues emergency appropriations or modifies program rules ahead of spring 2027 to avoid large reductions.