Iowa regents' delayed decision on tuition hikes could put students in a bind

A decision on how much to raise tuition rates at Iowa's three public universities won't come until June, leaving students and their families just a few weeks to make financial plans before the start of the 2018-19 academic year.

While the Iowa Board of Regents is slated to discuss next year’s tuition rates at its Feb. 21-22 meeting, a final decision isn't expected for another four months, a board spokesman said. The board postponed a planned October discussion on tuition rates because it said it needed more time.

Presidents at the University of Iowa, Iowa State University and the University of Northern Iowa each have proposed tuition hikes over the next five years ranging from 1.75 to 11.7 percent.

“It’s going to create a lot of stress for my family and I to plan for tuition increases if we only have a few weeks to come up with a financial plan,” said Vivian Le, 19, a University of Iowa sophomore studying journalism, art and business.

“I’m a first-generation college student, and navigating the finances of college has been difficult,” said Le of Waukee. “Giving us even less time will be tough.”

Each of the past two years, the regents have set tuition rates in December, only to approve additional hikes weeks before the start of the next academic year.

Students and their families criticized the tuition re-adjustments, saying it made financial planning difficult, the board spokesman said.

"The board wanted to be deliberative and have extra time in setting tuition rates,” said Josh Lehman, regents’ spokesman. “The board did not want have happen what’s occurred in recent years.”

Many of the nation's colleges and universities set tuition rates for the next academic in spring to mid-summer, said Thomas Harnisch, of the Washington, D.C.-based American Association of State Colleges and Universities.

"By that point in the year, boards often have a general idea of what will happen with higher ed funding in state budgets," he said. "In some instances, budget gridlock can delay decisions about tuition levels."

Last year, Iowa regents convened a tuition task force to address long-term funding concerns at the University of Iowa, Iowa State University and the University of Northern Iowa.

The move came after the three institutions’ state funding was slashed by more than $30 million midway through the 2017-18 academic year.

Concerns exist that the universities will face another round of cuts yet this fiscal year because state revenue growth is below projections.

Officials have estimated that when the Iowa Legislature convenes next week, lawmakers will be faced with making up to $90 million in cuts to the current fiscal year’s budget.

It’s unclear how expected cuts would affect the budgets of regents’ institutions. It’s also unclear how the state’s bleak budget forecast will impact tuition rates for the 2018-19 academic year.

In August, after meetings of the tuition task force, leaders of the three public institutions proposed tuition plans that included:

Raising tuition nearly 7.1 percent each of the next five years for resident students attending the University of Iowa. The proposal calls for tuition of $8,016 in the 2018-19 academic year, up $530 from the current $7,486. By fall 2022, resident tuition rates would be $10,537, 41 percent or $3,051 more than the current rate. Rates for non-resident undergraduate students would increase nearly 2.1 percent each of the next five years, from $29,736 in 2018-19 to $32,288 in 2022-23, according to the proposal.

Raising tuition 7 percent each of the next five years for residents students attending Iowa State University. The proposal calls for tuition of $7,978 in the 2018-19 academic year, up $522 from the current $7,456. By fall 2022, resident tuition rates at the Ames institution is proposed to be $10,457, 40 percent or $3,001 more than the current rate. Tuition rates for non-resident undergraduate students would increase 4 percent each of the next five years, from $22,144 in 2018-19 to $25,905 in 2022-23, according to the proposal.

Raising tuition between 1.75 percent and 11.7 percent, depending on state funding, over the next four years for resident students attending the University of Northern Iowa. Currently, resident tuition is $7,456. If state funding increases at the rate of inflation, tuition in the fall would be $7,747, according to the proposal. However, if state appropriations fall 3.2 percent, tuition could increase to $8,328, making UNI's tuition more expensive than that of ISU and Iowa. In 2021-22, resident tuition at UNI could range between $8,237 and $9,304, depending on state funding, according to the proposal.

“It’s irritating that the tuition keeps getting raised,” said Brooke Larsen, a University of Iowa junior who lives in Illinois. “I wish they would set it once your freshman year and keep it at that rate all the way through school.”

In November, Iowa’s three state universities' presidents asked the governor for $12 million in additional state funding, saying the money would be used for financial aid for resident undergraduate students. The request included $5 million in additional financial aid for ISU and UI and $2 million for UNI.

The presidents also asked for nearly $40 million that would be used to pay for part of three major building construction projects on their campuses.