Need-Based Aid for Private, Not-for-Profit Colleges—The Iowa Tuition Grant

(2019) Need-Based Aid for Private, Not-for-Profit Colleges—The Iowa Tuition Grant. College Student Aid Commission

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Abstract

The costs incurred while earning a postsecondary credential are rising. While those costs are typically highest at private, not-for-profit colleges and universities, students attending those institutions often receive a substantial amount of student aid to offset the expense. In Iowa, the state-funded Iowa Tuition Grant (ITG) provides need-based aid to students attending private, not-for-profit institutions. This study explores how eligibility for ITG impacts students’ postsecondary enrollment patterns. It also looks at the association between receiving an ITG award and completing a postsecondary credential. We found that financial aid applicants who were eligible to receive ITG were more likely to enroll in college and more likely to enroll at a private, not-for-profit institution by 3 and 25 percentage points, respectively. Students who received an ITG award were 4-5 percentage points more likely to complete a credential within four, five or six years than non-recipients at the same institutions.