More colleges in Iowa and across the U.S. are offering full tuition coverage to students, with programs that have few requirements beyond being accepted to the university, maintaining a certain GPA, and filling out a federal student aid application.
Though this approach may seem risky financially, private colleges in Iowa believe it will help increase both enrollment and revenue. For example, Drake University in Des Moines introduced the Bulldog Promise and Bright College Pathway programs, which offer full tuition coverage for some students. University President Marty Martin explained that the university will use state and federal aid first, then use its own funds to cover the remaining tuition.
These programs are aimed at attracting more students by eliminating tuition costs as a concern, allowing students to focus on the value of a Drake education. Similarly, Simpson College in Indianola has expanded its full-tuition offerings, including new programs for students graduating from local school districts. Vice President Leigh Mlodzik of Simpson noted that these programs have already boosted both enrollment and revenue.
Both schools are confident that offering more financial aid won’t hurt their finances. Drake University’s previous tuition guarantee program, launched in 2018, also helped grow enrollment without negative financial effects.
Gary Steinke, president of the Iowa Association of Independent Colleges and Universities, has noticed a trend where more private colleges across the country, especially in states with fewer people, are offering full-tuition programs to attract students, especially as the enrollment of high school graduates is expected to decline in the coming years.
Additionally, the increased availability of outside financial aid, such as the Iowa Tuition Grant and Pell Grant, is helping colleges expand their own financial aid programs. Both Drake and Simpson saw an increase in students from Iowa this year, with Simpson reporting an 11% increase in first-year students.
The goal of these programs is also to attract more students from Iowa, who may have not previously considered staying in-state for college. Both Drake and Simpson have seen more Iowa residents enrolling, with Drake now having nearly an even split between in-state and out-of-state students.
Iowa’s private colleges spend a combined $500 million annually on financial aid. Steinke believes this trend will continue, especially as private donations for scholarships increase over time.
Both Drake and Simpson have raised significant funds for scholarships through successful fundraising campaigns. Martin from Drake emphasized that the donations received during their most recent campaign will help make the university more affordable.
While both colleges are confident in their programs, they acknowledge the importance of balancing financial aid offerings to avoid negative financial impacts. Mlodzik cautioned that schools need to carefully plan how they distribute aid to ensure they continue to see both increased enrollment and net revenue.
Steinke added that college administrators are closely monitoring their finances to ensure that their financial aid programs are sustainable in the long run.