Minnesota is contending with a $131 million student-aid shortfall, driven by three straight years where the state has not been able to meet demand. The problem is tied to rising enrollment, changes to FAFSA, and tuition increases that boost students’ need for assistance. The report frames the shortfall as a structural mismatch between projected aid capacity and actual student demand, which can force delays, reductions, or wait-listing depending on how programs are administered. For higher education leaders in the state, the immediate operational consequence is uncertainty in financial-aid packaging late in the cycle and the potential for lower net enrollment if students’ aid gaps reduce affordability. The longer-term policy implication is that Minnesota may need to revisit funding levels, eligibility design, or forecasting models for state grant programs as federal aid dynamics and tuition levels continue to shift.