Increase in university tuition fees ruled out
Caoimhe Archibald said while she recognised the challenges facing universities, she did not wish to "push that additional pressure on to students".
It comes after the five universities and university colleges in Northern Ireland had called for tuition fees to rise by more than £1,000 a year.
The proposal, which was sent in a letter to Stormont's main parties, would have increased annual fees for students to £5,831.
The letter was signed by the heads of Queen's University Belfast, Ulster University and the Open University in Ireland, and supported by a separate letter from the principals of St Mary's University College and Stranmillis University College.
It said that "without urgent intervention" there was a risk of "undermining productivity and long-term economic recovery".
The institutions also said about a third of young people left Northern Ireland to study elsewhere "due to the continued Northern Ireland Executive policy on funding".
Higher education is the responsibility of the Department for the Economy in Northern Ireland's devolved government.
Archibald said the current funding model did not work.
The Sinn Féin minister said she had written to ministerial colleagues to ask for higher education institutions to be "prioritised for in-year funding to address the challenges this year".
"I want to work in partnership with our universities and students to find a sustainable way forward, and will work on a longer term solution as part of the three-year budget," she added.
'Increasing tuition fees will put people off university'
How much does university cost in the UK?
Archibald said she had "already committed to undertaking a review of higher education funding".
Tuition fees in Northern Ireland were £4,750 in 2024/25. The figure increases annually in line with projected inflation.
Most students take out a loan to cover their tuition fees and living costs, which they then pay back when they begin working after graduation.
In England and Wales students currently pay £9,250, while Scottish students who remain in Scotland to study do not pay tuition fees.
Students in the Republic of Ireland pay a maximum of €2,000 (£1,695) a year in fees.
Ben Friel, president of the National Union of Students and Union of Students in Ireland, met the minister and welcomed her decision.
"She made it very clear that she does not want to increase the financial burden on students, and we're relieved to hear that," he said.
"Students at the minute are under immense pressure, and any more pressure would have been the final nail in the coffin for lots of students' academic journey."
Tuition fees should be 'affordable' says economy minister
'Increasing tuition fees will put people off university'
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