University of Northern Iowa to offer instate tuition rates to border states

CEDAR FALLS — Despite Gov. Kim Reynolds’ veto of $1.5 million lawmakers appropriated toward a University of Northern Iowa effort to charge instate tuition to undergraduates from border states, UNI has found a way to offer the good-neighbor discount anyway.

“Our gratitude goes out to the UNI Foundation for its substantial commitment to help kick start this game-changing project,” UNI President Mark Nook said in a statement. “With support made possible by generous donors, the foundation has earmarked resources to help the Neighboring State Rate gain momentum across the Midwest.”

Although the UNI Foundation hasn’t committed a specific amount toward the initiative, it has agreed to offset the cost differential.

“We estimate that cost to be approximately $1.5 million,” UNI spokesman Pete Moris said.

Through the discount, undergraduate applicants from Illinois, Minnesota, Missouri, Nebraska, South Dakota and Wisconsin will pay $10,201 in tuition and mandatory fees — as opposed to the $22,359 tuition-and-fee rate non-resident undergrads pay.

The Board of Regents officially will reset UNI’s out-of-state tuition rate at its July 30 meeting.

‘Access institution’

UNI in September first asked lawmakers to appropriate $3 million toward an effort to charge students from contiguous states the same tuition and fees as resident students. While potentially bolstering UNI enrollment, officials highlighted the concurrent benefit to Iowa’s economic by framing it as a “workforce development” initiative — given 40 percent of UNI’s non-resident graduates stay in Iowa postgraduation, “joining Iowa’s workforce and adding value to Iowa’s economic development.”

“As an access institution of higher education with a proven track record of keeping graduates in the state, UNI is uniquely positioned to play a critical role in attracting talent from other states and boosting Iowa’s economic growth,” according to that September request. “Not only will this funding open access to programs for students from the states contiguous to Iowa, it will also increase enrollment of undergraduates ready to join the Iowa workforce upon graduation.”

Ninety percent of UNI’s total student body — which dropped 36 percent from a high of 14,070 in 2001 to a low of 8,949 in 2022 — comes from Iowa, with only 8 percent coming from another state and 2 percent from another country.

But much of its modest enrollment rebound of late — to 9,283 last fall — came via nonresidents.

While UNI’s resident undergraduate enrollment continued its slide to a low of 7,017 in fall 2024, its non-resident undergraduate count rose to 598 — with Illinois providing the most at 193, followed by Minnesota at 152 and Wisconsin at 85.

‘An exciting development’

Hoping to continue that trend, UNI proposed dropping border-state rates to instate levels — after the Legislature earlier this year agreed to appropriate half the $3 million UNI requested for the initiative.

But Reynolds’ line-item veto upended those plans — and regents last month approved traditional instate and out-of-state tuition rates for UNI topping $22,300.

“I look forward to working with UNI next year to further develop the details of the program and see it launched,” Reynolds said in nixing the funding, taking specific issue with the ongoing nature of the state support.

“UNI initially requested $3 million in one-time funding to jump-start a program that would thereafter be self-sustaining,” Reynolds said. “But this bill provides $1.5 million with an expectation of ongoing funding.”

Determined to make the new rate a reality, the UNI Foundation stepped up, according to spokesman Moris.

“This is an exciting development for students and their families across the region,” President Nook said. “We anticipate that UNI’s Neighboring State Rate will attract even more talented students to our campus to take advantage of the wide variety of academic programs we offer, at an even more affordable price.”

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UNI’s out-of-state undergraduate tuition and fees is set at $22,359 — saving neighboring state students more than $12,100.

UNI’s instate undergraduate tuition is the lowest of any four-year college or university in Iowa — except for the specialty Palmer College of Chiropractic. It’s not far above rates across Iowa’s community college system and sits in the middle of its peer group.

UNI is only two to three hours from Midwestern cities such as Rochester, Minn., Madison, Wis., and Minneapolis/St. Paul.

“Cedar Falls is an easy drive for students and families from across the region,” UNI officials said.

Vanessa Miller covers higher education for The Gazette.

Comments: (319) 339-3158; vanessa.miller@thegazette.com