The Iowa Board of Regents today voted to create a committee charged with eliminating tuition-funded scholarships within five years by raising additional state and private dollars.
The policy, called tuition set-aside, earmarks about 20 percent of tuition paid by every public university student to scholarships for others. Republican legislators this spring criticized the decades-old practice as an unfair burden for middle-class Iowans struggling to pay for college.
Regents officials said the shift in funding should not result in decreased money for scholarships. However, it’s not clear how much of the $150 million in tuition-funded scholarships awarded last year the universities will be able to replace.
The legislature this fall will be asked to fund a new a state grant program for Iowans currently eligible for need-based scholarships paid for by tuition dollars, regents officials said.