Who helps pay
for your child to attend the University? That may seem like a silly
question, so soon after youve written a tuition check.
But if your
student receives scholarship or grant money, its not as silly
as it seems. In 1998, more than 47,000 alumni, faculty members,
staff, and other friends of the University contributed $52.1 million
in outright gifts to the University of Iowa Foundation, and $13.5
million of that amount was designated to support student financial
aid. This was a 42.7 percent increase over the $9.4 million designated
for student financial aid in 1997.
people notified the Foundation that they had established wills or
trusts that will yield an estimated $40.1 million in the future,
and of that amount, $17.7 million, or 44 percent, will support student
So many people
whom students will never know have taken an active interest in their
The gifts fully
support the select undergraduate merit awards, such as the Presidential,
Opportunity at Iowa, Deans, National Merit/Provost, and Enrichment
scholarships. New scholarship money also will help the University
diversify its undergraduate student body, increase the annual retention
rate, improve student commitment to the four-year graduation plan,
and increase overall graduation rates.
are one facet of student financial aid. Others include grants, part-time
or work-study jobs, and loans.
Over the four
years that The University of Iowa has participated in the federal
direct loan program, average indebtedness of Iowa students has gone
down. Mark Warner, director of the Office of Student Financial Aid,
says, "We attribute this to an increased awareness of students
and parents of the amounts actually needed to pay their expenses.
Most borrowers are trying to limit their borrowing to what is necessary,
and 27 percent of our students do not borrow at all."
Loan Indebtedness for a Graduating Senior
default rates for the federal Stafford and Perkins loan programs
have run significantly below national averages,
Student Jobs Available
employers have been having difficulty filling jobs, both work-study
and ordinary part-time positions, Warner says. He attributes this
problem to an increase in local job opportunities and competitive
wages. To try to help University offices hire, the Office of Student
Financial Aid offers a fall Student Job Fair that is open only to
campus employers. Employment opportunities are included in all award
packets and orientation materials.
students do office work, laboratory work, computer-related jobs,
childcare and tutoring, academic and scientific research, and service
positions (food, laundry, parking, security, mail delivery).
positions, which go to students on the basis of need, are funded
by state and federal work-study programs, departmental budget allocations
from state appropriations, federal non-work study grant support,
and private funds. The trend with the federal work-study portion
has been to require institutions to use more money to support community
service, reading tutor, or family literacy projects. In 1998-99,
15,207 students were employed. 2,003 in work-study programs earned
$3.3 million, while 13,204 students in non-work-study positions
earned $23 million. Of the work-study positions, 252 students worked
in community service on campus and 140 in a service program off
campus. America Reads hired 56 students as tutors.
Will Make Dropouts Repay Aid
fall, the U.S. Department of Education will demand that students
pay back portions of their Pell Grants and other federal aid funds
that are not used for education.
The new rule
was one of several announced last November that will take effect
in July 2000. The rule applies to students who withdraw from college
on or after October 7, 2000.
Under a complex
formula in the rule, students who withdraw will owe the portion
of aid that was never used for classes, minus a 50 percent discount
that the government will offer. All students who owe at least some
of the repayment will get that discount. Students will have 45 days
to pay back the funds or to agree to a payment plan with the college
or the Department of Education.
The rule has
sparked controversy for months between educational institutions
and the government. Some higher education officials warned that
the rule could force many institutions to change their aid-refund
policies. They also warned that low-income students might be deterred
from enrolling if they thought they might owe the government money,
while others would lose eligibility for future aid because they
would not be able to pay back the funds on time.