Freeze or cap? Iowa lawmakers file competing proposals to address tuition costs

DES MOINES — To freeze or to cap? Iowa lawmakers have introduced competing proposals aimed at addressing the increasing cost of attending college at the state’s public universities.

Iowa House Democrats on Wednesday filed a bill that would freeze tuition at Iowa’s three public universities for in-state undergraduate students, starting in the 2024-25 school year.

House Republicans, meanwhile, have proposed capping annual increases in tuition and mandatory fees at 3 percent for baccalaureate degrees at the University of Iowa, Iowa State University and the University of Northern Iowa

The Democrats’ proposal, House File 2352, would freeze tuition and fees for incoming in-state freshmen undergraduates for all four years as they pursue a baccalaureate degree. Tuition and fees could increase for the next freshmen class, but would also be frozen at that level for four years.

The tuition freeze would not apply to out-of-state or graduate students.

For too many Iowa families, the rising costs of higher education are forcing students to take on more debt and leave Iowa for higher wages, said Rep. Adam Zabner, an Iowa City Democrat and a sponsor of the bill.

“Today, there are 433,000 Iowans with student loan debt that averages over $30,000,” Zabner said. “And last year there were 41,300 Iowa residents at the University of Iowa, Iowa State and the University of Northern Iowa.”

At the University of Iowa, Iowa State University and the University of Northern Iowa, in-state tuition and fees ranged between $9,700 and nearly $11,000 for the 2023-24 school year, an increase of about 3.5 percent from last year.

Some specialized degree programs saw higher rate hikes, as did out-of-state students at Iowa State.

Zabner noted undergraduate tuition and fees at the University of Iowa have increased sevenfold in the last two decades, from $1,453 in 2000 — the year after he was born — to more than $10,000 today.

“That’s too much. That’s hard for families to work out,” Zabner said.

State support

Zabner and other House Democrats accused Republicans of shortchanging the state’s regent universities, leading to tuition increases.

Lawmakers last year denied the universities any general education increase and instead provided an additional $7.1 million tied to specific programs across the campuses.

Iowa Gov. Kim Reynolds has proposed an additional $12.3 million, a 2.5 percent increase, for each of Iowa’s public universities for the upcoming budget year. That’s well below the roughly $40 million overall increase requested by the Board of Regents in university funding.

The regents had sought $14.8 million more in general education support — in addition to special requests by each campus — with both the UI and ISU getting $4.5 million increases and UNI getting a $5.8 million hike. The UNI increase would have allowed it to keep tuition flat next year.

Zabner said House Democrats noted their bill would provide a corresponding annual budget increase to ensure ISU, UNI and the UI can freeze tuition without having to make budget cuts and compromise services.

“We don’t want to put them on the hook for cutting or capping tuition and not having the resources they need,” House Minority Leader Jennifer Konfrst, D-Windsor Heights, told reporters.

Zabner added: “We want to still make sure that we are fully funding education in the state, but we also want to make sure that every Iowa family can make the choice to send their student to college, if that’s what they want to do.”

GOP proposal

House Republicans, who hold an agenda-setting majority, argue a tuition freeze is unsustainable.

“I think that our proposal is much more sound, because it doesn’t must throw money at the problem and unrealistically freeze (tuition), which will probably just be temporary,” said Rep. Taylor Collins, R-Mediapolis, lead sponsor of House Republicans’ higher education omnibus bill, House File 2327, that would cap tuition increases.

“A concrete ceiling of 3 percent is a good amount because it does allow a little bit of growth, while at the same time controlling costs,” Collins said, calling House Democrats bill a “poor proposal.”

“Because you’re just looking to throw more money at the problem,” he said. “ … But the fact is we’ve seen the system just continue to consume any money that we give them.”

Meanwhile administrative and tuition costs continue to grow, Collins said.

Tuition growth

Iowa’s regents universities have touted tuition revenue as an increasingly important piece of their operating budget.

In the 2023 budget year, tuition accounted for 60 percent of the universities’ combined operating revenue, while state appropriations accounted for about 33 percent.

In 2001, the reverse was true, with state funding accounting for 64 percent of the universities’ combined operating revenue, according to data from the Iowa Board Regents, the governing body overseeing Iowa’s three public universities.

The University of Iowa last year saw its tuition revenue increase $24.7 million over the prior year, in part because of cost increases. Iowa State University’s tuition revenue last year came in $10.3 million over the prior year thanks to the rate hikes — even though it was $5.6 million under budget.

UI student: ‘My heart broke’

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Avery Dettbarn of Strawberry Point, a second-year student at the UI studying political science, spoke alongside House Democrats in support of their proposal.

Dettbarn said she found herself unable to afford a large chunk of her tuition after applying for financial aid, scholarships and federal loans.

She applied for private loans but was continuously denied because she could not find a co-signer with a suitable credit score.

“My heart broke knowing that I may not be able to follow my dreams because I cannot afford the tuition to pursue those dreams,” Dettbarn said.

Fortunately, Dettbarn said she was able to find a distant family member willing to loan her the money on a repayment plan.

“But this is not the case for everyone,” she said. “Young Iowa adults are struggling to pursue their collegiate dreams because of the high and rising tuition prices. And this bill would directly impact these students and allow us to follow out dreams without the additional financial stress.

“Iowa’s young adults deserve the fundamental right to education. And this bill is what we as students need to help our success and our future.”

Konfrst, the House minority leader, said House Democrats are also working on plans to help students attending Iowa’s private universities and community colleges, including supporting the Iowa Tuition Grant program.

Gazette higher education reporter Vanessa Miller contributed to this report.

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