Bills › 90th General Assembly
Relating to the Iowa tuition grants program administered by the college student aid commission and including effective date and retroactive applicability provisions
Topics:Higher education
Where it is now
- Done: IntroducedFebruary 2, 2023
- Done: SubcommitteeFebruary 7, 2023
- Done: House committeeFebruary 21, 2023
- Skipped: Passes the HouseContinued as HF 421
- Next: Senate committee
- Next: Passes the Senate
- Next: To the Governor
- Next: Signed into law
Became HF 421 → Its progress continues under the new number. Go to HF 421 What’s a funnel?
What’s in it
AI summary Iowa students can receive tuition grants to attend certain private colleges that were recently bought by local non-profit organizations. This change applies to specific schools that meet these ownership rules for a set period between December 2022 and June 2023.1
Read the official explanation
This bill relates to the Iowa tuition grants program administered by the college student aid commission.9 defines as one of Iowa’s eligible private colleges and universities. The bill provides that, for the period beginning December 1, 2022, and ending June 30, 2023, and for purposes of the program, the term “eligible institution” includes an institution of higher learning accredited by the higher learning commission which, effective January 8, 2010, was purchased by an institution that was not exempt from taxation under section 501(c)(3) of the Internal Revenue Code and which, effective December 1, 2022, was purchased by an entity located in this state that is exempt from taxation under section 501(c)(3) of the Internal Revenue Code. The bill establishes that this provision takes effect upon enactment and applies retroactively to December 1, 2022. The bill makes conforming changes.
House subcommittee
Named February 7, 2023. On February 15, 2023 it recommended passage. Vote Total: 3-0.
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
Fiscal note
AI summary This bill allows for the distribution of previously appropriated for-profit Iowa Tuition Grant funding to students at Waldorf University following its conversion to a nonprofit institution. The bill would allow the distribution of $170,000 from the state's General Fund. If the bill does not pass, between $124,000 and $170,000 would revert to the General Fund at the end of fiscal year 2023.3
Read the fiscal note
Description
House File 421 relates to the Iowa Tuition Grants (ITG) program administered by the College Student Aid Commission.
Division I is effective upon enactment and retroactive to December 1, 2022, the date Waldorf University converted to a nonprofit institution.
Division II removes Iowa Code language related to the for-profit ITG that is no longer relevant since Waldorf University’s conversion to nonprofit status.
Background
Iowa Tuition Grants are awarded to Iowa residents enrolled at eligible private colleges and universities in Iowa. Priority is given to applicants demonstrating the greatest need, as reported on the Free Application for Federal Student Aid (FAFSA). Grants are separated by nonprofit and for-profit status and are available for up to four years of full-time undergraduate study. Part-time students may be eligible for adjusted amounts. The amount of the grant is based on the student’s financial need remaining after other sources of financial aid are considered. The maximum grant amount is $6,000 per year.
Waldorf University transitioned from a for-profit institution to a nonprofit institution in December 2022. In this process, approximately 112 Iowa resident students of the university lost eligibility to receive the previously allocated awards under the for-profit ITG. The university is currently filing a nonprofit application for the 2023-2024 academic year. If all nonprofit eligibility criteria are met, the College Student Aid Commission may waive the October 1, 2022, application deadline to ensure aid is available for the fall 2023 semester and beyond. The Bill ensures that students who are Iowa residents currently attending Waldorf University will not become ineligible for the for-profit ITG for FY 2023 due to the conversion of the institution from a for-profit to a nonprofit institution.
The College Student Aid Commission is currently unable to distribute previously allocated awards to students at Waldorf University for the 2023 spring semester, which runs from January 11, 2023, through May 2, 2023. After the semester, affected students will lose eligibility for those awards and funds will revert to the Scholarship and Tuition Grant Reserve Fund. The Scholarship and Tuition Grant Reserve Fund is able to carry forward 2.0% of the total FY 2022 allocated funds totaling $44,000 from the combined for-profit ITG and the Vocational-Technical Tuition Grant.
Waldorf University was successful in its request to waive the October 1, 2022, application deadline for the nonprofit ITG for the fall 2023 semester under Iowa Administrative Code 283 – 12.2(2). No additional legislative action is required to maintain students’ eligibility for the fall semester under this waiver.
Assumptions
- Approximately 112 students’ for-profit ITG awards cannot be distributed due to Waldorf University’s change to a nonprofit institution. The awards will be distributed with the enactment of the Bill.
- The average award impacted by this change in status is $1,517 per student.
Fiscal Impact
House File 421 would allow the distribution of previously appropriated funding for for-profit ITGs from the General Fund totaling $170,000. If the Bill is not enacted, between $124,000 and $170,000 would revert to the General Fund at the end of FY 2023. The remaining balance would carry forward to FY 2024.
Source
- College Student Aid Commission
- Final Fiscal Note — Accredited Private Institutions, Tuition Grants · May 12, 2023 · $170,000
- Accredited Private Institutions, Tuition Grants · March 6, 2023 · $170,000
Iowa Code it changes
Lobbying
2 for · 0 against · 3 undecided · Who →