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Release: Nov. 14, 2002

UI To Increase Tuition Set Aside Allocation For Student Financial Aid

The University of Iowa will increase the amount of tuition revenue set aside for student financial aid during the 2003-04 academic year in an effort to maintain its historic commitment to making a college education affordable for all qualified Iowa students.

Following approval by the Board of Regents, State of Iowa the university is implementing a plan to fully fund the tuition set aside at 16 percent and then exceed that amount by $800,000, which will be focused on financial aid for continuing students. Combined with the traditional 16 percent of new tuition revenue, that $800,000 will increase the university's 2003-04 tuition set-aside allocation by $4 million to a total of about $32 million.

"Iowa's public universities have experienced some of the greatest state budget cuts in the nation in the last two years. I am very concerned about tuition costs limiting access to higher education, and this proposal is part of our attempt to be aggressive in ensuring that there is adequate funding for student financial aid programs," said UI President Willard L. "Sandy" Boyd. "I'm also going to be zealous about working to increase state funding and minimize the magnitude of tuition increases in coming years."

Boyd noted that the additional money from tuition set aside funds would target four scholarship and grant programs, all of which substantially benefit Iowa residents:

• U of I Upperclass Scholarship, a need-based scholarship for sophomores, juniors and seniors who have a 3.0 grade point average or above.

• U of I Freshman Scholarship, a need-based scholarship that provide access to first-year students who have done well academically in high school.

• Iowa Community College Transfer Scholarship, a need-based scholarship for students transferring with an associate of arts degree from an Iowa community college. Students must have a 3.0 GPA or above.

• Iowa Minority Academic Grant for Economic Success, a need-based grant for under-represented students who are residents of Iowa and enter the UI as first-year or returning students.

The university is also pursuing increased funding in private, state and federal support for student financial aid.

In cooperation with the other Regents universities, the UI will attempt to restore funding for the Iowa Work-Study Program. During the 2000-01 academic year, the state provided UI students with more than $600,000 for that program. That funding was eliminated for the 2001-02 and 2002-03 academic years.

Over the past four years, the UI Foundation has nearly doubled the funds transferred each year to the UI for scholarships, from $4.2 million to more than $7.9 million. In addition, as part of a comprehensive fund-raising campaign, the UI Foundation has set a goal of raising $142 million for scholarships. At the halfway mark of the campaign, $86 million has been received or pledged.

University officials will also work to maintain and increase federal funding for student financial aid, including programs such as the Pell Grants, Perkins Loans, Supplemental Educational Opportunities Grant, federal work-study, the Leveraging Educational Assistant Partnerships (LEAP), and TRIO, a program for low-income, first-generation college students.