Mississippi is facing a $7.3 million financial aid deficit that could reduce spring 2027 awards for up to 27,000 students, Mississippi Today reported. State aid officials attributed the shortfall to a 2025 change in how funds are distributed, expanding 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, increasing both the number of applicants and qualifying students. Coverage also notes that simplifying the FAFSA contributed to more students submitting aid applications. Without additional funding, Mississippi may limit scholarships for former foster youth and reduce award amounts for other state grants—an immediate affordability risk for students relying on state support alongside federal aid.