Nailed it. The state of North Dakota being able to offer instate tuition to MInnesota, Iowa, South Dakota, Nebraska, Kansas and Wisconsin is the single biggest reason they are where they are. They are also allowed to offer in-state tuition to any minority student that comes from any state with a Top 25 population.
On their books, it basically looks like they're paying 63 in-state scholarships.
They're also spending over double what every other team in FCS is on football to be relevant for one weekend a year but that's a totally different discussion.