(Ames, IA) – The Iowa Capital Dispatch reports the Iowa Board of Regents wasn’t ready to call for any hard and fast decisions when it came to potential tuition guarantee programs Wednesday, having received a report on how they’ve worked at other institutions and potential impacts on Iowa universities. A tuition guarantee program locks in a student’s tuition their first year, ensuring the cost won’t increase as they continue through their undergraduate education. Board Chief Business Officer Brad Berg worked with Regent Christine Hensley and former Regent David Barker to develop a report on tuition guarantee programs. The Iowa Legislature passed legislation this year requiring study of the topic and the board this spring assigned the group to conduct the work.

When combining sources of income for Iowa’s public universities, Berg said the breakdown falls at 20% resident undergraduate tuition, 30% state appropriations and the rest coming from tuition from other groups, such as nonresident and graduate students. Traditionally, when state funding decreases, tuition then increases, and Berg said tax reductions from the state could lead to funding uncertainty in the future. The report also stated that federal actions have caused even more uncertainty in areas of research and student financial aid.

“Given the historical variability in Iowa’s higher education funding, implementing a tuition guarantee policy without a stable funding base could lead to unintended consequences, potentially limiting the ability of the state’s public universities to adapt to fluctuations in state support, inflation and rising operational costs,” the report stated. Berg said there are also technical considerations when considering implementing a tuition guarantee, like whether software would need to be replaced and certain programs changed. Each of the universities uses a different system for tuition payments and houses academic programs with unique tuition costs, and students often change their majors or make other moves that impact their bills.

The study group examined tuition guarantee programs across the U.S. for the report, including Drake University in Des Moines. Results were mixed on their success, Berg said, with some discontinuing their programs due to budget shortfalls after economic downturns caused state funding to decrease. Others, including Drake, continue to operate their programs without negative impacts. Regent Kurt Tjaden expressed concerns that a tuition guarantee would eventually lead to cutting costs in other areas, and the area with the most costs is in staffing.

All the board has to do with the report is receive it and submit it to the General Assembly, according to board documents, but board members still had the future on their minds. Hensley suggested further study of interest in potential tuition guarantees in partnership with the Iowa College Access Network, an organization she said is in high schools across Iowa answering questions from students about college affordability and financial aid.

The policy requires that base undergraduate tuition increases at state universities don’t go over the three-year inflation average set by the Higher Education Price Index. Berg said Iowa’s universities have hiked tuition by an average of 3.2% over the past five years. Berg suggested, and Bates and other members of the board agreed, that waiting to see how the increase cap impacts institutions and students would be the best option before implementing any new strategies based on the tuition guarantee report.