Regents may look at different tuition models

Some states offer tuition rebates for timely graduation, guarantees of no tuition increases for four years  for new students and extra grant money for academically qualified low-income students.

Those programs, happening in places like Texas, Illinois, Wisconsin and Ohio, are examples of the innovative thinking state Board of Regents leaders want to consider in setting tuition rates for Iowa's three regent universities.

The regents held a tuition workshop Wednesday in Iowa City and heard about state and national tuition trends and strategic tuition policies in other states.

Regents President David Miles, of West Des Moines, said he likes the idea of coming at tuition from fresh angles, rather than just taking the easy route of setting a tuition increase that is within the Higher Education Price Index range.

“It was interesting to see the number of different ways that states are tackling this,” Miles said. “I think it's important that we have new options available.”

State regents typically hear tuition recommendations for the upcoming year in October, but the board changed the timeline this year. Regents instead held the tuition workshop Wednesday, and will hear 2011-12 tuition recommendations in February for the University of Iowa, Iowa State University and the University of Northern Iowa. The final tuition vote will be in March.

Miles said regents know there are pros and cons to each innovative idea. Setting the same tuition rate for four years, for example, usually means a significant increase in the first year, so the universities can build a four-year cushion, he said.

But falling back on the Higher Education Price Index, a range of expected inflation, to set the tuition increase is “simply not a creative, thoughtful approach in this financial environment,” Miles said.

Regent Greta Johnson, a May 2010 ISU graduate, said the main thing students want to see is predictability. Coming up with a plan that lets the board forecast tuition for several years in advance is important to her, Johnson said.

“That way you have a better idea when you begin school what you'll be paying down the line,” she said.

The UI, ISU and UNI all rank near the bottom of their peer groups for tuition rates. Iowa's regent universities also have seen lower tuition increases in recent years than the national and Midwest averages, according to information presented to the regents by Nate Johnson, a higher education consultant.

Nationally, tuition is making up more of the funding formula for higher education as states deal with budget cuts, Nate Johnson said. Iowa ranked 33rd nationally in 2008-09 for state/local government support per public higher education full-time student.

“The students are paying a larger share than they used to,” he said.

Some options for the regents to consider in Iowa include a statewide need-based aid program with clear guarantees to lower-income families; a shared responsibility model where all students pledge to contribute a set amount to their education; four-year guaranteed tuition; and financial incentives to students who graduate in less than 120 credits, he said.

The tuition workshop was paid for by the Lumina Foundation.