Hunter
12/31/25
A state-mandated study on a tuition guarantee program for incoming freshmen at the three state-run universities in Iowa determined that although it would offer better financial stability for the students, the universities may find budget shortfalls due to rising costs.
The Gazette reports the study looked at the pros and cons of allowing freshmen to pay the same tuition rate for four straight years. Regent Christine Hensley and former regent David Barker pitched a model that would be optional for incoming freshmen and require those who opt in to pay a one-time non-refundable up-front premium established by the Board of Regents.
The study proposed beginning the tuition-freeze program in fiscal 2028 — when the University of Iowa’s base rate for in-state students is expected to be $10,148. For the university to break even, freshmen wanting to participate would have to pay a $1,863 premium in the first year — bringing the tuition total in year one to $12,011 — before dropping it back down to the base rate of $10,148 for the subsequent three years, according to the proposal.
Participating students would pay a total of $42,455 over their four years — the exact same as students who don’t participate and pay the base rate in year one but then 3 percent more in each of the three subsequent years.
The non-refundable premium, which anticipates those 3-percent annual tuition hikes, would increase annually with every new freshman class to prevent the universities from losing money.
The drawbacks center on the gradual reduction of state funding for Iowa’s public universities. Back in 1981, the state funding was 77 percent of the school’s general education fund; now it’s just 28 percent. Guaranteeing tuition rates for four years to incoming freshmen could cause budget shortfalls if state support falls even further and operating costs continue to rise. An expected enrollment decline in coming years due to a smaller population of students is another factor.
The study says other states have implemented the flat tuition policy with varying results.