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ENCORE: Should Students (or Their Families) be Forced to Pay College Tuition for Other Students?

Tuition set asides leaves some students accruing debt to pay for other students to attend school.

 

For decades now, thousands of Iowa's public university students have been paying part of the tuition for peers. 

Are they paying hundreds of dollars more each year toward another student's bill because they are altruistic? No. It's because they have no choice. 

"I had no idea that the Iowa Universities were diverting tuition dollars," a constituent wrote to State Rep. Jeff Kaufmann, R-Wilton, who shared the letter. "I have two kids at the (University of Iowa). It is rather upsetting that my kids as well as my wife and I are borrowing money to pay for their tuition at the UI and some of that tuition is being diverted to other students."

Call for Comment: Should students be forced to pay for other students to go to college. Weigh in in the comment section below.

The practice is referred to as a "tuition set aside." It is used in Iowa and many other states for financial aid.

Iowa's university policy requires setting aside for financial aid at minimum 15 percent of tuition paid by students at the three state universities. For the upcoming school year, University of Iowa, Iowa State University and University of Northern Iowa will set aside on average 21.5 percent of tuition to fund mainly need-based, but also merit-based, scholarships. This is then distributed to less than half the student body.

For their part, regents challenge the idea that one student is paying bills of another.

“It’s not necessarily that you’re taking it out of my pocket, although they think they are taking it out of their pocket,” Regent Craig Lang told the Ames Tribune. “I think the point is being lost...”

Universities generate $49 million for financial aid

The universities and the Iowa Board of Regents proudly tout the efforts to keep the doors open to all Iowans and maintain "access and affordability."

"The Regents increased the commitment to student financial aid to record
levels, ensuring access to the public universities for all Iowans regardless of means," the regents reported in the latest tuition plan. "In the last three fiscal years, Regent universities have continued to exceed the minimum required 15 percent set aside of gross tuition proceeds for student financial aid by nearly $130 million."

That amounts to $49 million in fiscal 2012, according to the report.

Recently, Republican lawmakers began zeroing in on this program and have been raising questions.

Why should one student be forced to pay tuition for another while Iowa has among the highest student debt in the nation? Iowa university students are walking away with nearly $28,000 in debt, according to a recent Des Moines Register report.

So where do you stand? Should universities continue to set aside tuition to help people with less means go to school?

Related Topics: Iowa Public Universities, Tuition Set Aside, and University of Iowa

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B.A. Morelli

8:03 am on Wednesday, April 18, 2012

Should Iowa universities continue to have some students basically foot the bill to help other students attend college?

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Maria Houser Conzemius

9:12 am on Wednesday, April 18, 2012

No, they shouldn't. And I believe University of Iowa students pay the highest percentage, somewhere between 21% and 24%, for someone else's scholarship in their tuition.

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B.A. Morelli

11:41 am on Wednesday, April 18, 2012

Maria, University of Iowa is setting aside 24 percent of tuition.

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Maria Houser Conzemius

11:54 am on Thursday, April 19, 2012

Thanks, Brian. I was pretty sure it was 24% of each student's tuition to help pay for another student's tuition at the University of Iowa, but I was hedging my bets. I think the UI has the highest percentage of tuition set-aside for scholarship students.

Kurt B.

8:15 am on Wednesday, April 18, 2012

I guess I don't quite understand this whole concept. Can you explain this a little further ? This almost sounds like some sort of scam but those that are paying the bill are not aware of what is going on.

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Wendy Call

8:21 am on Wednesday, April 18, 2012

I need more clarification as well. This does not sound right. Students should be given a choice to that money or it should not be charged.

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Jerry Ripperger

8:24 am on Wednesday, April 18, 2012

Taxation without representation was at the core of the American revolution. How is this really any different? Appointed (not elected) regents are setting tuiton which is inflated to cover the costs of others (regardless of what they call this extra payment it is a tax). it is time for our elected legislature to act.

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B.A. Morelli

8:27 am on Wednesday, April 18, 2012

The state doesn't have much in the way of financial aid for its public universities. So the universities/regents implemented this in the 1980s as a way to underwrite a financial aid program and keep the schools affordable for students. The regents codified setting aside 15% in mid 2000s and in the last few years they've upped the set aside percentage as tuition has increased higher than inflation. I think the problem is many families feel like they did not know they were paying for this. I don't believe students see itemized in their bill, although the tuition set aside program is reported to the regents and discussed as part of the annual tuition report. Does that help?

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Maria Houser Conzemius

9:11 am on Wednesday, April 18, 2012

I'm not happy to find out that 24% of my daughter's tuition costs at the University of Iowa go to pay part of someone else's scholarship. She's gone into debt with student loans and would be more in debt if we weren't helping her. Thank God for Pell grants! Otherwise, she'd be even more in the hole.

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Stephen Schmidt

11:39 am on Wednesday, April 18, 2012

"Thank God for Pell grants!"

Oh indeed. They helped me out a ton my final year.

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B.A. Morelli

11:42 am on Wednesday, April 18, 2012

I should have scrolled down first. I see you found the answer.

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Lori Lindner

4:39 pm on Thursday, April 19, 2012

Maria, you say your daughter receives Pell grants. I am just curious, who do you think pays for the Pell grant program? It's a financial aid program administered by the Federal Department of Education, funded by taxpayer dollars. So, just to clarify: you are saying it's okay for your daughter to receive financial assistance from everyone else in the country, but it's not okay for her tuition to be set aside for another student at Iowa? I'm not sure how one rationalizes that.

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Stephen Schmidt

9:33 am on Wednesday, April 18, 2012

So I'm guessing nobody is going to like the concept of some students paying tuition for other students. Who would like doing that if they didn't have to? Likely very few people.

My question is, though, is this practice was obviously instituted for a reason. With universities already battling for the funding they do get, what is going to happen if this practice is going to be eliminated? That's millions of dollars worth of needs based student aid at a time when tuition is still going up, and lower income individuals need higher education. Is there a proposal for what to do about that if this is eliminated?

If it's more funding diverted from the state to the universities, that is another form of being forced to pay for someone else's kids-- it's called taxes. And yes I'm aware most people don't like that either.

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Stephen Schmidt

9:35 am on Wednesday, April 18, 2012

It seems to me that it would be better for state lawmakers to work with the Regents Universities to try to lower tuition for everyone, as this would benefit students of all economic backgrounds and hopefully reduce the need for student aid.

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Ernie Rudolph

4:38 pm on Thursday, April 19, 2012

I agree. If the tuition was only 75% of the current tuition more students could afford it. This is a classic death spiral. It cost too much for some. Let's charge others more. It costs too much for more, etc.

Jim Zupan

9:53 am on Wednesday, April 18, 2012

I guess it doesn't take a village...I knew Hillary was off base when she said that. If it is the policy of the Universities to do this, and they haven't been hiding the fact, what right does anyone have to complain? If you had a problem with this, the time to do something was before you sent your kids to a Iowa public university. I have 4 children, and I hope they all attend college. Yes I will help them, and no it won’t really bother me to know I am helping someone else…What kind of selfish cold hearted jerk would have a problem with it? Oh that kind…

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Stephen Schmidt

10:07 am on Wednesday, April 18, 2012

Money's still tight in this world of ours, and with tuition going up I don't begrudge parents (or the students) for being upset about paying for other students. I'd just like to see what they plan to do as an alternative to help these students if they eliminate the practice.

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Ms. H

4:37 pm on Thursday, April 19, 2012

Really? "That kind?" What exactly is that kind? Universities obviously aren't making this widely known. I, for one, would object of using my money to fund other students. Why? I am a single mother and I will now be in debt likely for the rest of my life trying to better our lives by attending college. That is not being selfish. If you have the money to pay 24% be my guest.

Aubrey A Huber

10:12 am on Wednesday, April 18, 2012

Are we a me, me, me society or do we care about our community? When does caring about the self border on acting selfish? Not all students have the same opportunities. Despite our semblance of living in a democracy, we are not all equal.

If we don't all start out with the same opportunities, things can't even begin to be fair. Living in a community means giving back to a community, supporting a community. If everyone had and used the money they needed, millionaires and billionaires would be unnecessary.

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Ms. H

4:37 pm on Thursday, April 19, 2012

Yeah, it is nice to give back. But there are so many things that this money is used for that I don't approve of. Classifying people by financial need only is ridiculous. If a student was to quit after one semester and received aid, they do not have to pay back that free money. I would happily support something at a lower percent to give people an equal chance. I am a graduate student and have student loans. There is no reason in the world why someone else can't take out loans to attend college as I have had to do because I have no other choice if I want to have a master's degree. So I really can't see your basis of how you are claiming this is a donation to the community thing. It really isn't. Way more depth to the issue than that.

working mom of 3

11:11 am on Wednesday, April 18, 2012

It goes beyond knowing it because there is nothing a student can do but pay the amount that goes to others. Yes, there should be financial assistance for students in need along with the opportunity for student loans and work study. Any other financial assistance shouldn't be paid by fellow students who are taking on loans and/or working their way through college. Let that assistance dollars be raised by the universities and their very successful foundations.

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Ms. H

4:37 pm on Thursday, April 19, 2012

Right, 24% of the responsibility should NOT be placed on students!

Erv Server

11:29 am on Wednesday, April 18, 2012

College education should be free for everyone that wants one. Education is the backbone of this country. We have to decide what is more important, shipping jobs and money overseas or making our country stronger and able to compete.

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working mom of 3

11:39 am on Wednesday, April 18, 2012

This country was also built on hard work and the desire to make a better life. There is a price to pay for it. We pay for the k-12 system through property tax (most do) and if you enroll in college you should have some financial investment in it. I am second generation college for my family and I had work study. student loans a job off campus and my parents had loans. I knew that education was work and worth it and I didn't take it for granted. That it is why it is important for those receiving assistance to work for it. It is a much better feeling to know accomplishment and hard work can pay off. Assistance should be available to any students willing and wanting an education.

Maria Houser Conzemius

11:35 am on Wednesday, April 18, 2012

Incredible. At least my kid and I should have been told that she was helping to pay someone else's tuition. I told her this morning. It was news to her, and not very good news. So she's $17,000 in debt so she can help pay someone else's tuition. And some of you think that's okay? The struggling middle class is having a hard enough time sending their kids to college. Why make it harder?

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Ms. H

4:37 pm on Thursday, April 19, 2012

I am just finding out about this as well. No where on my college information does it say that this amount is set aside for other students. When I graduate I doubt life will be well off for me either. I will spend the rest of my life in debt to the US Dept. of Education. I just don't understand (1) why this hasn't been made news, (2) why all of this money we are paying in we do not see more scholarships, and (3) why "lower" class people cannot take out a student loan like I have had to do. Really?! This is irking me for sure.

Maria Houser Conzemius

11:37 am on Wednesday, April 18, 2012

Oh, and our college student also has worked since she was 16 years old, continuously, and babysat before she turned 16. So my kid has to work AND go to school to help pay someone else's tuition? If some of you think that's okay, think again. We should at least have been told.

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Ms. H

4:37 pm on Thursday, April 19, 2012

I agree and props to you for raising a hard working daughter.

Clarence Johnson

11:59 am on Wednesday, April 18, 2012

Yeah. In the same sense that we expect (even if the reality isn't always a reflection of that expectation) that the wealthy will pay higher taxes to subsidize a public service.

This post is a honeypot, in the same sense that a blog post asking "SHOULD WELL-TO-DO DRIVERS BE FORCED TO PAY FOR ROADS THAT ANY POOR SLOB CAN DRIVE ON?"

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B.A. Morelli

12:07 pm on Wednesday, April 18, 2012

@Clarence. I am not sure I follow you.

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Ms. H

4:37 pm on Thursday, April 19, 2012

I'm not sure what Clarence is trying to say either. I do know that this is or will be turned political. I am a student and I do not enjoy paying for someone else's college while I bust everything I have to be a student now. I will be in debt the rest of my life. There are plenty of people who have extra money who could help this funding. 24% by student's alone is ridiculous. I think what you are trying to get across is that it's okay for someone to pay 24% whether they have the means or not to do so, while other's walk away with little to no debt. There is no reason in the world why less fortunate people can't take out student loans like I have had to do.

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B.A. Morelli

12:00 pm on Wednesday, April 18, 2012

One of the central pieces of this debate isn't whether their should be financial aid to help those that can't afford it get into our public universities, it's who should pay for it. Should it be the state as a whole (i.e. all tax payers) or just students and their families.

I remember speaking with a finance professor some time ago about this type of tuition model where tuition is raised higher so students who can afford it pay more, and then there is more money to subsidize education for lower income students who need help. He said this is the most sustainable way to maintain access for all and quality at public universities at a time when the public no longer wants to use tax dollars to subsidize.

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Ms. H

4:37 pm on Thursday, April 19, 2012

That's wishful and nice thinking. But I am not considered high class and I have not seen any tuition breaks. And, to top things off the government now has done away with subsidized funding, meaning I now only have the choice to take out loans that continuously capitalize interest. I know a college education is choice, but I feel like I'm in a lose/lose situation here.

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Maria Houser Conzemius

11:55 am on Thursday, April 19, 2012

Brian, well said. The University of Iowa has decided that students should pay for other students' tuition, even those who have to go into debt to do so.

David Leonard

1:01 pm on Wednesday, April 18, 2012

The more the legislature starves the universities for money, the more the regents will have to come up with creative ways to make the universities affordable for deserving students from low income families.

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Ms. H

4:37 pm on Thursday, April 19, 2012

Yeah, be creative. Apparently the universities have been creative in not making this very well known. As a fellow student I should not have to be in debt for the rest of my life to help fund someone else's education. No way no how.

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Ernie Rudolph

4:38 pm on Thursday, April 19, 2012

The Universities have done a terrible job of cutting costs. They use graduate students to teach classes while professors do research (mostly guide students) and write and consult. Easy government loans have exacerbated the problem of rising tuition. High tuition for degrees that have little economic value is a model for failure of the system. College of the Ozarks often nick named Hardwork U offers a work study program that pays all tuition and fees for its students. It is a private college. It can be done.

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Maria Houser Conzemius

11:57 am on Thursday, April 19, 2012

David Leonard, my idea of "creative" ways to make universities more affordable for deserving students from low-income families would be to take that money from international and out-of-state students or eliminate administrative positions, not take the money from middle-class and working-class students in state who go into debt and work to finance their own education as well as others'. I say international because many countries -- not ours -- commit a great deal of money to finance their citizens' education. I say out of state because we've all seen the students who drive Lincoln Navigators and live in sororities. They can afford to help pay for someone else's tuition. My kid can't.

Proud UNI Grad

10:46 am on Thursday, April 19, 2012

Every one of us who has health insurance has been doing this same thing for years. Our rates are "artificially" higher to subsidize those who can't afford insurance or refuse to buy it, but yet still get sick or injured and need medical care, but then can't or don't pay their bills. We also subsidize our community hospitals through higher taxes when they are forced to write off unpaid medical care.

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Dave Martin

4:38 pm on Thursday, April 19, 2012

The students who pay tuition (essentially all of them) contribute to the fund and, in turn, they were/are eligible apply for grants - this eases the blow a bit - at least they have a chance of getting some back.

Say the amount withheld and redistributed is 20% (the university retains 80% of tuition collected.

Maybe it'd be easier to swallow if tuition was simply not charged to 20% of students in the first place? It sounds fairer but the net financial result for the university is the same.

Maybe it is not done the second way (by tuition waivers) because it takes time to do the necessary evaluating and choosing?

Or maybe my logic is horribly wrong.

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CFBusinessOwner

4:38 pm on Thursday, April 19, 2012

Could the Patch address the problem of state universities continually building more and more expensive buildings while making cuts to programs/raising tuition? When officials are asked about this they say that it is because they are two different funds...Why isn't the legislature or the BOR placing a hold on all building expansion until the universities shore up the funds to pay professors and (gasp) lower the tuition for all students?

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B.A. Morelli

5:20 pm on Thursday, April 19, 2012

Kate, Not that this isn't a good point, but here's a couple things to think of, at least from a university's perspective. First, most high dollar building projects get significant funding from private donations. Second, an up to date and appealing physical campus plays an important part in recruiting students and faculty.

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CFBusinessOwner

2:55 pm on Saturday, April 21, 2012

True, an appealing physical campus is important but looking at the big picture I think it's important to start with the basics that make a great university: top notch full-time faculty---not a university full of adjuncts. And as far as private funding goes---it's great if folks want to donate, but how many "donor-shrines" does a university need? Isn't it time the development folks spoke up and steered folks to donating funds to go towards research, endowing department chairs,scholarships. etc? Granted, these aren't ego stroking kinds of donations but if we don't do this we'll end up with a campus full of empty shiny new buildings.

Maria Houser Conzemius

5:11 pm on Thursday, April 19, 2012

Lori Lindner, it shouldn't be as hard as it is for students to go to college or learn a skilled trade. My daughter is $17,000 in debt and we pay our taxes. We've done enough. It's the lack of transparency that upsets me most. Of course I know that Pell grants come from the federal government. Pell grants come from MY taxes, too!

If we all give a little, scholarships are possible. But 24% of each in-state student's tuition to pay for someone else's tuition is too much. We give and give till it hurts, and my daughter is in debt. Not fair.

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B.A. Morelli

5:26 pm on Thursday, April 19, 2012

Question to people who feel the tuition set aside program is not transparent: What should be done to make it transparent?

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Brian Morelli

6:46 pm on Thursday, April 19, 2012

We just posted this opinion piece on tuition set-aside. It's coming from a specific point of view, although lots of information. Transparency and Accountability in Iowa Tuition and Set-Aside Surcharge Scheme Is Needed: http://cedarfalls.patch.com/announcements/transparency-and-accountability-in-iowa-tuition-and-set-aside-surcharge-scheme-is-needed

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Tracey Makela

5:09 pm on Friday, May 4, 2012

President Obama's quote in the Press Citizen (April 26) from his speech AT the University about the cost of college and student loans sums it up nicely, "...Think about that. We're going to help some students by messing with other students. That's not a good answer." I know he was talking about freezing student loans and the cost of college but it is also appropriate here! As the mom of a UofI student who is here on scholarships and loans, because my husband makes "to much money" for aid, I do not think that she, or any student, should be forced to pay 24% to help" other students! They can work 2 jobs while going to school and the parents can take out loans too!

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David Leonard

8:26 am on Saturday, May 5, 2012

Mitt Romney says students can borrow the money from their parents. In his world parents have the money to loan and probably even forgive the loans.

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Maria Houser Conzemius

8:21 pm on Saturday, May 19, 2012

David Leonard, isn't Mitt Romney clueless? Every time he opens his mouth to talk as if he understands the average citizen, he puts his foot in it. He has no clue.

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Maria Houser Conzemius

9:12 am on Sunday, May 20, 2012

Ms. H, thanks for your compliment! We're hoping Sarah's job as a student environmental systems analyst will lead to a good job once she graduates in environmental sciences. I was so proud of her when she got her hardhat, steel-toed boots, Carrhart jeans, and gas mask. I've always told her not to go into a female-dominated profession, which is what I did, twice.

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