Fiscal Note
Fiscal Services Division
HF 421 – Accredited Private Institutions, Tuition Grants (LSB1769HV.1)
Staff Contact: Michael Peters (515.281.6934) michael.peters@legis.iowa.gov
Fiscal Note Version – Final Action
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.
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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
/s/ Jennifer Acton
May 12, 2023
Doc ID 1373997
The fiscal note for this Bill was prepared pursuant to Joint Rule 17 and the Iowa Code. Data used in developing this
fiscal note is available from the Fiscal Services Division of the Legislative Services Agency upon request.
www.legis.iowa.gov
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Statutes affected:
Introduced: 261.16A, 261.25, 261.9
Enrolled: 261.16A, 261.25, 261.9