Federal financial aid drops for fifth consecutive year at Iowa public universities
While federal aid declined at state Board of Regents universities, institutional financial aid at the UI increased.
February 14, 2023
Students at Iowa’s public institutions — including the University of Iowa — received less federal financial aid for the fifth consecutive year, the state Board of Regents announced in its annual financial aid report.
The total awarded aid dropped from $503.4 million in 2020-21 to $484.3 million in 2021-22. According to the report, federal aid has been steadily dropping since 2010-11.
Total financial aid increases from institutional contributions
The total amount of financial aid awarded by institutions and the government increased slightly at all Iowa public universities, going from $1.05 billion to $1.06 billion in 2021-22. The report attributes the small spike from institutions compensating for the drop in federal aid.
Institutional funding also rose from $412.7 million in 2020-21 to $439.4 million in 2021-22, the report stated. Of that amount, the University of Iowa received $118 million, an increase of $7 million from last year.
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The report also noted that $356 million in federal loans were taken out by students. Institutional grants and scholarships for undergraduate students rose by 4 percent.
Additional scholarship funding of $60.1 million from other sources and $8.9 million from the state were also available during 2021-22.
Of the $296 million in institutional scholarships, $142 million was reserved for need-based grants for undergraduates. The UI received $52.2 million in need-based scholarships in 2021-22.
According to the report, the last of the money from the Higher Education Emergency Relief Fund was distributed in spring 2022. The regents distributed $22.4 million of the federal COVID-19 relief dollars to the UI.
The HEERF money came from the Coronavirus Aid, Relief, and Economic Security Act, which was a $2.2 trillion economic relief package released in 2020 in response to economic downturns resulting from the pandemic.
The report will be presented on Feb. 22 at the regents meeting.