The Iowa Board of Regents today approved the creation of a state grant, and the elimination of a controversial tuition-funded scholarship program.
The state grant would be funded by $39.5 million from the Legislature, which will be considered during the legislative session that begins in January. In return for the money, the board has said it will permanently drop tuition for Iowans by an equal amount, an estimated $1,000.
If the Legislature funds the state grant program this spring, the tuition discount would take effect for the 2014-15 academic year, board officials said.
The tuition-funded scholarships, also called tuition set-aside, earmarks about 20 percent of tuition paid by every student to scholarships for others. The policy, which will be phased out over five years, was criticized this year as an unfair burden to middle-class Iowans.