Mississippi is confronting a $7.3 million financial aid deficit that could reduce state grant awards for as many as 27,000 students during spring 2027, according to reporting cited by state aid officials. The shortfall is linked to 2025 changes in how state funds are distributed, including expanding eligibility to students taking at least 12 credits instead of 15. State lawmakers also raised the income threshold for the state’s Higher Education Legislative Plan, and simplification of the Free Application for Federal Student Aid appears to have expanded the number of applicants qualifying for state aid. Without additional funding, Mississippi may need to limit access for former foster youth scholarships or decrease award amounts across other grants. The episode echoes a wider operating challenge for state aid programs: policy changes that broaden eligibility often arrive before appropriations keep pace, forcing rapid triage in spring award cycles and potentially altering student enrollment and persistence outcomes.