‘Institutions are going to have to cut people:’ Iowa Board of Regents weigh tuition freeze program for students

AMES, Iowa (KCRG) - The Iowa Board of Regents is looking into whether Iowa students going to any of the state’s three public universities should be guaranteed to have the same tuition for all four years.

The goal of the tuition guarantee program is to help limit student loan debt.

The Iowa legislature passed a measure this year mandating research into the pros and cons of the program.

The report shows the program can help students keep financial stability with a fixed tuition.

It said Iowa’s regent universities are offering lower tuition rates than other universities.

Several colleges, like Drake University, have implemented a similar program with some seeing mixed results. Some colleges found it unsustainable during tough economic times.

Regent Kurt Tjaden pointed out universities rely on tuition revenue, and that this program might cause unintended consequences.

“If you do that, you’re taking that financial lever away, right?” Tjaden said. “Because you won’t be able to increase tuition for that class?”

“Correct,” Brad Berg, the board’s chief business officer, said.

“So, differently, to maintain financial viability, the regent institutions are going to have to cut people because that’s where the costs are to offset that lost tuition,” Tjaden said.

“It would depend on the rate that was set,” Berg said.

In April, the board approved a policy to cap annual increases to undergraduate tuition based on inflation.

That policy hasn’t taken effect yet.

The board supported a plan to see if that policy is working and get feedback from students and families before making any changes.