Freedom Scholarship: Changing Lives and Supporting South Dakota

Higher education opens doors to new opportunities yet for many students, the financial burden can be a major barrier. Freedom Scholarship is changing that reality for students in South Dakota. Offering a pathway to success, the Freedom Scholarship benefits students from all economic backgrounds who dream of pursuing a bachelor’s degree. More than just a scholarship, it’s an investment in South Dakota’s future—one that strengthens communities, builds the workforce and empowers individuals to achieve their full potential.

South Dakota Community Foundation (SDCF) Community Development Coordinator & Marketing Manager, Jamie Farmen, joined Freedom Scholarship Program Coordinator, Elli Haerter, to discuss the impact this landmark scholarship program has had on South Dakota over the last four years.

South Dakota was the final state in the U.S. to introduce a needs-based scholarship, launching the Freedom Scholarship in 2021. The initiative began with a leading donation of $100 million from First Premier Bank and billionaire philanthropist T. Denny Sanford, in collaboration with the state of South Dakota and the Avera and Sanford health systems. Freedom Scholarship has been established as an endowment fund through SDCF, and to date donors have helped to bolster the fund to $220 million. 

In 2021, the South Dakota Legislature officially passed Senate Bill 171 to establish Freedom Scholarship. Rep. Kent Peterson said, “This bill is a chance to do something big for our state–an opportunity to look back and say, ‘we made a difference.’”

Dana Dykhouse, CEO of First PREMIER Bank, shared, “This scholarship not only helps incoming freshmen, but it can also help students who have a year or two left of school, and may have run out of money to continue. We want to see students not just start strong but also finish strong.”

Since its creation, the Freedom Scholarship has awarded 1,400 scholarships annually. The program isn’t just about financial assistance; it’s about shaping South Dakota’s next generation of leaders, innovators and skilled professionals. By partnering with 10 select colleges and universities across the state, Freedom Scholarship provides a unique opportunity for students who demonstrate financial need to obtain a quality education—without being held back by cost. In return, these students commit to completing a bachelor's degree in five years or less, and staying in South Dakota for three years after graduating, contributing their skills and talents to the state’s economy and communities after graduation.

“More than 30 percent of Freedom Scholarship graduates responding so far have gone on to work in the education and healthcare sectors,” shared Elli. “Those are such important fields to add skilled workers to, so it's really encouraging to see that this scholarship is having a strong impact on our state already.” 

For students who are enthusiastic about learning, eager to contribute to their communities and ready to build their careers in South Dakota, Freedom Scholarship is more than just aid—it’s a promise of opportunity. By investing in students, South Dakota invests in the state’s own future, creating a legacy of success that benefits everyone.

“We have a vision, and our donors have a vision to change the destiny of our state, and of the lives of hopeful students in South Dakota,” said Elli. “Early indications show that this scholarship means a lot to students who take advantage of this opportunity.”

Hannah Morgan, a nurse in Avera’s NICU department, was able to utilize the Freedom Scholarship to attend Augustana University for nursing. She began her career at Avera Health shortly after graduation, and shared, “ South Dakota is near and dear to my heart. I couldn’t imagine living anywhere else. Thanks to the Freedom Scholarship, my debt has been lowered, and I was even able to buy a house.” 

“This scholarship’s impact grows every year, and the exciting part is that we are just getting started, " Haerter shared.

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