CONDITION

OF HIGHER
EDUCATION
IN IOWA
2018

A
 TABLE OF CONTENTS
Message from the Executive Director��������������������������������� 1

1. Benefits of a College Degree

For the Individual ��������������������������������������������������������������������������������� 2
For Iowa ��������������������������������������������������������������������������������������������� 4

2. Iowa’s Demographics
Race/Ethnicity ������������������������������������������������������������������������������������� 6
Age ���������������������������������������������������������������������������������������������������� 7
Education �������������������������������������������������������������������������������������������� 7
Income ����������������������������������������������������������������������������������������������� 8

3. College Readiness
High School Graduation Rates ��������������������������������������������������������������� 9
ACT Benchmarks �������������������������������������������������������������������������������� 10
Iowa Assessments ������������������������������������������������������������������������������ 11
Remediation �������������������������������������������������������������������������������������� 12
Joint Enrollment ���������������������������������������������������������������������������������� 12

4. College Success
Iowa’s Rankings ��������������������������������������������������������������������������������� 13
Enrollment ����������������������������������������������������������������������������������������� 13
Retention & Persistence ����������������������������������������������������������������������� 15
Graduation ��������������������������������������������������������������������������������������� 16
STEM Degrees ����������������������������������������������������������������������������������� 17

5. College Price
Price as a Barrier ������������������������������������������������������������������������������� 18
Average College Price ������������������������������������������������������������������������ 19
Change in Price ��������������������������������������������������������������������������������� 19

6. Financial Aid
Actual Price to Students ����������������������������������������������������������������������� 20
Iowa FAFSA Filers ������������������������������������������������������������������������������ 21
Federal Financial Aid ������������������������������������������������������������������������� 22
State Financial Aid ����������������������������������������������������������������������������� 22
Institutional Financial Aid �������������������������������������������������������������������� 24
Private Financial Aid �������������������������������������������������������������������������� 24
Family Savings ���������������������������������������������������������������������������������� 24

7. Student Loan Debt

Student Loan Debt in Iowa�������������������������������������������������������������������� 25
Default Rates in Iowa��������������������������������������������������������������������������� 26
Demographics of Debt ������������������������������������������������������������������������ 26

Looking Ahead�������������������������������������������������������������������������� 27

Sources����������������������������������������������������������������������������������������� 28
B
MESSAGE FROM THE EXECUTIVE DIRECTOR
Iowa College Aid advocates for and supports Iowans as they explore, finance and complete postsecondary
education. We are the only Iowa state agency with that sole focus. This is our fifth “Condition of Higher Education in
Iowa” report, and I hope it will provide a snapshot of where Iowa’s successes have been and what the future holds
for higher education in our state.
Unfortunately, since the release of our most recent report in 2016, Iowa has made only modest gains across higher
education indicators. While we still lead the nation in high school graduation rates, the share of Iowa high school
students who meet college readiness benchmarks remains unchanged. The share of Iowans attending college
increased less than 1 percentage point, to 61 percent. Compared to white and higher-income students, minority
and low-income students continue to lag in college readiness, enrollment and completion. This is especially troubling
because black and Hispanic individuals are the fastest-growing demographic groups in our state.
Overall, small increases in attainment and growing gaps in achievement suggest little progress toward our state’s goal
that 70 percent of Iowans have education or training beyond high school by 2025. It is imperative that we continue
to empower Iowa students and their families to pursue higher education, or we will slip farther from that goal.
We do not believe, however, that the picture is entirely bleak. Since our 2016 report, Iowa College Aid has
expanded its reach through community engagement programs and communication campaigns that stress college
awareness, access and success. We are also noticing improvements at the local level. Early research has found that
GEAR UP Iowa helps close the college enrollment and persistence gaps for low-income students. Additionally, the
state of Iowa has begun implementing its Future Ready Iowa initiative, which is designed to prepare our workforce
for the jobs of the 21st century. The impact of these programs might not be immediate but will become apparent over
time. We continue to believe in our vision: “All Iowans can achieve an education beyond high school.”
No matter your role—educator, parent, student, policymaker or higher education stakeholder—we hope this report
will help you identify the steps and resources necessary to make higher education possible for every Iowan.

Karen Misjak
Executive Director, Iowa College Aid
1
1. BENEFITS OF A COLLEGE DEGREE
The social and economic advantages of postsecondary education have long been recognized. In
this chapter, we demonstrate how Iowa benefits from a highly educated citizenry.

Unemployment rates in Iowa FOR THE INDIVIDUAL

Bachelor’s The professional and financial
1.7%
or higher benefits of a college education
for individual Iowans are clear:
Some college College graduates are more likely
or associate 3.1%
to be employed and earn higher
wages than individuals with no
HS
diploma 4.3% postsecondary experience. In 2016,
Iowa’s unemployment rate was
Less than 3.3 percent, lower than the national
HS diploma 8.7% average of 4.7 percent. But the
employment rate varies according to
0% 2% 4% 6% 8% 10% one’s educational attainment level.
Source: U.S. Census Bureau, 2016 American Community Survey 1-Year Estimates
For example, the unemployment rate
for individuals with less than a high
school diploma was 8.7 percent,
and 4.3 percent for individuals with
Job growth in Iowa, 2011–16
only a high school diploma. With
100,000 every step in educational attainment,
98,000 the unemployment rate drops. The
80,000
unemployment rate for those who
60,000 71,000
Workers hold at least a bachelor’s degree
40,000 with 55,000 was less than one-fifth the rate for
bachelor’s Workers those who stopped short of a high
20,000 OVERALL degrees with some
JOB GAINS or higher college school diploma.
0
Workers with While Iowa saw a net gain in jobs
-20,000 HS diplomas between 2011 and 2016—and
or less while the population held steady
-40,000
during that time—the number of
-60,000
jobs held by workers with a high
-81,000
-80,000 school diploma or less fell, offsetting
-100,000
the gains made by workers with
education beyond high school.
Source: U.S. Census Bureau Current Population Survey,
Annual Social And Economic Supplement, 2011–2016

2
In 2016, Iowa Workforce Iowa’s top 10 “hot jobs”
Development created a “hot jobs”
Projected Projected
list for occupations that were in the
Typical degree 10-year job growth in
highest demand in the state. For Job title required growth rate actual jobs
example, between 2014 and 2024,
there will be an estimated 41 percent Operations research
Bachelor's 41% 295
analysts
growth in operations research
analyst jobs. Most of these “hot Information security
Bachelor's 39% 705
analysts
jobs” occupations require at least a
bachelor’s degree, which indicates Actuaries Bachelor's 30% 155
the need for an educated workforce.
Many of these occupations are in Physical therapists Doctoral/professional 29% 500
the STEM (Science, Technology,
Engineering and Math) careers.
Nurse practitioners Master's 28% 235
College graduates are not only more
likely to be employed, they also earn Computer systems
Bachelor's 28% 1,485
analysts
more. Just as unemployment rates
decrease at each education level, Occupational therapists Master's 28% 255
median earnings increase. Iowa
workers with bachelor’s degrees, for Personal financial
Bachelor's 27% 420
example, earn almost twice as much advisors
as workers with less than a high Optometrists Doctoral/professional 25% 125
school diploma. (See charts at right
and on page 4.) Over a lifetime,
Physician assistants Master's 24% 185
that difference adds up to nearly
$1 million, even taking into account
Source: “Iowa’s Hot 50 Jobs,” October 2016, Iowa Workforce Development
the fact that a high school graduate
probably spends more time in the
workforce.
Median weekly earnings in Iowa
The benefits associated with
a postsecondary degree also Graduate or
professional 1.7% $1,239
extend beyond employment and
earnings to include a multitude of Bachelor’s
$927
nonmonetary benefits. For instance: or higher 3.1%
College graduates are more likely to Some college
or associate $687
exercise1, live longer2, are less likely
to smoke3 and are more likely to self- HS 4.3%
$606
report a higher satisfaction with life.4   diploma
Less than
HS diploma $503 8.7%

$0 $300 $600 $900 $1,200 $1,500

Sources: U.S. Census Bureau, 2016 American Community Survey 1-Year Estimates

3
 Education levels and median earnings in Iowa by county

Lyon Osceola Dickinson Emmett Winnebago Worth Mitchell Howard Winneshiek Allamakee
35% 28% 43% 31% 36% 30% 29% 25% 42% 28%
Kossuth
Palo 34% Hancock Cerro Chickasaw
Sioux O’Brien Clay Floyd
Alto 35% Gordo 29%
40% 33% 33% 34%
38% 37%
Fayette
Clayton
Cherokee Buena Pocahontas Humboldt Franklin Bremer 31%
Plymouth Wright Butler 25%
33% Vista 31% 33% 30% 40%
31% 30% 29%
28%
Black Buchanan Delaware Dubuque
26% 39%
Woodbury Calhoun Webster Hamilton Grundy Hawk 31%
Ida Sac 35% Hardin 38%
30% 31% 36% 39%
31% 32% 34%
Jackson
Linn Jones
Tama Benton 28%
Marshall 31%
Monona Crawford Carroll Greene Boone Story 44%
29% 29% 35%
26% 21% 35% 31% 36% 60% Clinton
31%
Cedar
Audubon Poweshiek Iowa Johnson 36%
Harrison Shelby Dallas Polk Jasper Scott
27% 26% Guthrie 46% 29%
32% 30% 61% 43%
33% 31% 58%
Muscatine
33%
Madison Mahaska Washington
Cass Adair Warren Marion Keokuk
Pottawattamie 34% 33% 32%
29% 29% 40% 37% 30% Louisa
31%
24%

Mills Montgomery Wapello Jefferson

Adams Union Clarke Lucas Monroe Henry Des
34% 28% 24% 28% 44%
30% 29% 26% 28% 33% Moines
Appanoose Van 32%
Fremont Page Taylor Ringgold Decatur Wayne Davis
29% Buren
33% 33% 26% 31% 28% 24% 27% Lee
24%
27%

Percentage with associate degree or higher: 20–29.9% 30–39.9% >40%

Lyon Winnebago
Osceola Dickinson Emmett Worth Mitchell Howard Winneshiek Allamakee

Kossuth
Palo Hancock Cerro Chickasaw
Sioux O’Brien Clay Gordo Floyd
Alto

Fayette Clayton
Plymouth Cherokee Buena Pocahontas Humboldt Franklin
Bremer
Wright Butler
Vista

Black Buchanan Delaware Dubuque

Calhoun Hamilton Grundy Hawk
Woodbury Ida Sac Webster Hardin
Jackson
Jones
Marshall Tama Benton Linn
Monona Crawford Carroll Greene Boone Story
Clinton

Johnson Cedar
Audubon Poweshiek
Shelby Jasper Iowa Scott
Harrison Guthrie Dallas Polk
Muscatine

Pottawattamie Madison Mahaska Washington

Cass Adair Warren Marion Keokuk
Louisa

Montgomery Jefferson Des

Mills Adams Union Clarke Lucas Monroe Wapello Henry
Moines

Fremont Appanoose Van

Page Taylor Ringgold Decatur Wayne Davis Buren Lee

$28,000–$32,999 $33,000–$37,999 >$38,000

Source: U.S. Census Bureau, 2012–2016 American Community Survey 5-Year Estimates

4
FOR IOWA
Higher levels of education will
promote economic health in Iowa,
its communities and the nation. In
order to meet projected workforce
demands and attract or retain
businesses, Iowa will need to increase
the number of residents who continue
education beyond high school. By
2025, 68 percent of jobs in Iowa
will require some postsecondary
credential.5 Currently, 61 percent of
Iowans have at least some college
education.6
That projection prompted the Future
Ready Iowa goal—that 70 percent
of Iowans have some education
or training beyond high school
by 2025. This goal translates to
150,000 more Iowans with education
beyond high school.
Reaching this goal will not only
require an increase in Iowa’s
educational attainment rates, but
will also require keeping college
graduates in Iowa and attracting
highly educated non-Iowans to live
in the state. Retaining and attracting
educated individuals could be a
daunting task. Almost 20 percent
of resident Iowans attending Iowa’s
four-year colleges and universities
say they intend to leave Iowa
after earning their degrees, and
30 percent are unsure whether they
will stay in Iowa. Of nonresident
Iowans attending four-year Iowa
colleges and universities, less than
10 percent say they intend to stay.7
However, the rate of community
college graduates who stay in Iowa is
much higher: 84 percent.8
In addition to helping their
communities stay economically
competitive, highly educated workers
contribute more to state and federal
taxes as a result of higher earnings.
For example, bachelor’s and doctoral
degree recipients pay nearly two and
three times more, respectively, than
high school graduates.1 Communities
2025 workforce demands
100%
Graduate 8%
Bachelor’s 21%
80%
Associate 12%
60%
Certificate, license, apprenticeship 13%
Some college, no credential 14%
40%
HS diploma or less 32%
20%
0%
Degree requirements for jobs in Iowa in 2025
Source: “Iowa: Education and Workforce Trends through 2025,”
Georgetown University Center on Education and the Workforce
where individuals have higher levels • 34,000 fewer Iowans
of education also benefit through participating in Medicaid
diminished reliance on public • 29,000 fewer Iowans requiring
assistance programs. SNAP (Supplemental Nutrition
Of Iowans who are over 25:6 Assistance Program)
• 39% have never attended college. • 18,500 more Iowans with
employer-provided health
• 21% completed some college
but have not earned at least an insurance coverage
associate degree Additional benefits to the community
include reduced crime rates, higher
If this population earned associate
degrees, the estimated outcomes rates of volunteerism and increased
political participation such as voting.1
would be:6, 9 *
*Estimates were calculated using data from the
• 34,000 fewer Iowans living in Census Bureau and derived from previous research
poverty by the American Council on Education.
5
2. IOWA’S DEMOGRAPHICS
In this chapter, we discuss Iowa’s overall composition to understand the supply of potential college
students and to highlight which groups are under- and over-represented in higher education.

RACE/ETHNICITY
Population by race
Asian Asian
Iowa’s population is considerably
Other*/more Other*/more than one
2%
than one 5% 9%
less diverse than the United States
Black
4% 3% as a whole. While minorities
Black
13% account for 27 percent of the U.S.
population, they make up only
9 percent of Iowa’s population.
The percentage of young Iowans
identifying as white only (not
Hispanic or Latino) is dropping.
While the change is not dramatic,
White White it has been steady year over year.
90% 74% In 2005, about 87 percent of Iowa
children under 18 identified as white
only. In 2016, that number was
79 percent.1
Iowa population U.S. population
Iowa’s minority population is young
*Includes American Indian/Alaska Native and Native Hawaiian/Pacific Islander
and growing. While the median age
Source: U.S. Census Bureau American FactFinder (2016 data)
for white Iowans is nearly 41, the
median ages for Hispanic, black and
Asian Iowans are all under 30.
Iowa’s median age by race/ethnicity These trends have fueled a change in
the makeup of Iowa’s K–12 schools.
White
40.9 The number of minority students in
Iowa’s public school districts reached
Hispanic
an all-time high of 113,076—or
23.5
24 percent of the student body—
Black in the 2016–17 school year.
26.5
That percentage was even higher,
Asian at 40 percent, in the state’s largest
29.0 public school districts.2 As a result,
Iowa now has more minority students
than ever in the pool of potential
0 yrs 10 yrs 20 yrs 30 yrs 40 yrs 50 yrs
college graduates.
Source: U.S. Census Bureau American FactFinder (2016 data)

6
AGE Highest level of academic achievement
Iowa population 25 and older
Iowa has a slightly smaller
percentage of residents in the 18–64
working age range (60 percent)
HS diploma or less Some college Associate Bachelor’s Graduate
than the United States as a whole
39.4% 21.0% 11.2% 19.1% 9.3%
(62 percent). From 1970 to 2010,
the number of Iowans 65 and older
grew by almost 30 percent, while
the number of Iowans under 18 fell U.S. population 25 and older
by 16 percent. While the population
of young Iowans is rebounding,
HS diploma or less Some college Associate Bachelor’s Graduate
projections show that the growth in
39.8% 20.6% 8.4% 19.3% 11.9%
the number of Iowans 65 and older
is expected to outpace other age
groups at least through 2020.3

EDUCATION 0% 20% 40% 60% 80% 100%

Currently, 60.6 percent of Iowans Source: U.S. Census Bureau American FactFinder (2016 data)
have some postsecondary education,
which is comparable to the national
rate of 60.2 percent—but Iowa is still Academic achievement by age in Iowa
almost 10 percentage points short of
100%
the Future Ready Iowa goal for 2025.
92.5% 92.3% 92.6%
89.4%
Despite similar rates of high school
completion across all age groups in 80%
Iowa, the rate of college completion
drops among older Iowans. Iowans
aged 45–64 are 9 percentage 60%
points less likely to have a bachelor’s
degree than Iowans aged 35–44,
and Iowans aged 65 and older 40%
are 14 percentage points less likely 34.5% 35.3%
to have a bachelor’s degree than 26.6%
Iowans aged 35–44. 21.7%
20%
These numbers are on track with a
national trend that shows college
education levels increasing steadily 0%
from the Baby Boomers (born 1946– Ages 25–34 Ages 35–44 Ages 45–64 Ages 65+
1964) through Gen X (1965–1981)
High school diploma Bachelor’s degree
through Millennials (1982–2000).
Source: U.S. Census Bureau American FactFinder (2016 data)
Women in Gen X were the first
generation to be more likely than
their male counterparts to have
bachelor’s degrees (2 percentage
points ahead), and the difference is
even more pronounced for Millennial
women (6 percentage points more
likely to have bachelor’s degrees
than Millennial men).4

7
Iowa’s educational attainment levels Education levels in Iowa by race/ethnicity
vary greatly by race/ethnicity.
Overall 39% 21% 11% 19% 9%
Despite their differences in college
degree attainment and completion, White 38% 21% 12% 20% 9%
Iowans who are white or Asian
Hispanic 66% 16% 6% 9% 4%
attend college at a rate similar to
the state average. Hispanic Iowans, Black 47% 24% 9% 13% 7%
however, are by far the least likely
Asian 34% 8% 6% 23% 30%
to have attended any college, with
66 percent earning a high school
diploma or less. That figure has 0% 20% 40% 60% 80% 100%
serious implications for Iowa’s HS diploma or less Some college Associate Bachelor’s Graduate
educational goals because Hispanic Source: U.S. Census American FactFinder
Iowans are the fastest-growing
segment of the population.5

Individual earnings in the past 12 months

INCOME
More than half of Iowans earn less
than $50,000 a year, which is 9%
14%
17% 19%
comparable to the nation overall.
9%
The proportion of low-income
10%
students in Iowa public schools has
trended upward since 2000. In the
2016–17 school year, 41 percent 24%
of public K–12 students qualified 41%
22% 36%
for free or reduced-price lunches.
In 2000–01, only 27 percent of
K–12 students were eligible. The
highest percentages of students who
qualified were in Iowa’s largest Iowa U.S.
districts (53 percent) and smallest <$25,000 $25,000–$49,999 $50,000–$74,999
districts (49 percent).2
$75,000–$100,000 $100,000+
Poverty is far more prevalent among
Source: U.S. Census Bureau American FactFinder (2016 data)
racial minorities in Iowa than among
white residents. The poverty rates for
Hispanic and black Iowans are more
than twice and three times the rate Iowa poverty rates by race/ethnicity
for white Iowans, respectively.
White 9.7%

Hispanic 23.1%

Black 35.7%

Asian 13.9%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Source: U.S. Census Bureau American FactFinder (2016 data)

8
3. COLLEGE READINESS
In this chapter, we discuss Iowa’s gains and struggles in preparing students for college. These
indicators provide insight into readiness and are helpful in tracking year-to-year changes.

HIGH SCHOOL Iowa HS graduation national rankings

GRADUATION RATES
In 2014–15, Iowa was first in the Student group Rank1
nation in high school graduation
rates, which is a measure based IOWA OVERALL 1st

on the proportion of ninth-graders

White 6th (tie)
who earn a high school diploma
within four years. However, the Hispanic 6th (tie)

graduation rankings change when Black 14th (tie)

examining the shares of graduates Asian/Pacific Islander 15th (tie)
by race. While white and Asian
American Indian/Alaska Native 7th (tie)
students in Iowa graduated at rates
slightly above the state average, Low socioeconomic status 2nd
Hispanic and black students fell
considerably behind at 83 percent Limited English proficiency 3rd
and 79 percent, respectively.
Socioeconomic status (SES) is also Students with disabilities 5th

a factor in high school graduation Source: Common Core of Data, National Center for Education Statistics
rates. Only 84.8 percent of low-SES
students in Iowa graduated from
high school, 6 percentage points
Iowa HS graduation rates by race/ethnicity
below the state average.1 Despite the
rates being below the state average, ALL 90.8%
Iowa was in the top five across the
nation in rates for low-SES students
White 92.4%
and for students who had limited
English proficiency or disabilities.
Hispanic 82.8%
Complete chart of state-by-state
rankings: IowaCollegeAid.gov/
Condition18
79.2%
Black

Asian 92.7%

0% 20% 40% 60% 80% 100%

Source: National Center for Education Statistics, 2014–15 data

9
 THREE METHODS TO MEASURE COLLEGE READINESS

ACT Iowa Remedial

test Assessments education
College admissions exam Achievement tests taken Preparatory education
taken by about 2/3 of by all K–12 students required before enrollment
high school seniors in Iowa in college-level
in Iowa courses

These academic indicators alone are not sufficient to assess a student’s readiness for college. Other
indicators include high school coursework and harder-to-define social and emotional factors such as attitude.

Iowans’ average ACT scores ACT BENCHMARKS

25
In 2017, 67 percent of Iowa’s
high school seniors took the ACT.
That rate has remained constant
over the past five years. Iowans’
20 22.6 22.1 21.9 average composite ACT score in
21.2 21.3
2017 was 21.9, also consistent with
recent years.2
An ACT benchmark score determines
15
a student’s probability of college
success in a given subject. Being at
or above the threshold also indicates
10 an increased likelihood of a student
completing a college degree.3
While Iowans’ scores in individual
subject areas rank about 1 point
5 above national average scores,
Iowa averages fall below ACT’s
benchmarks in math and science. It is
worth noting that Iowa, unlike some
0 states, does not require high school
English Math Reading Science COMPOSITE juniors to take the ACT.
(benchmark 18) (benchmark 22) (benchmark 22) (benchmark 23) (no benchmark)
In examining ACT subject
Benchmark
benchmarks, Iowa excels in English
as 71 percent of students met
Source: ACT, “Average ACT Scores by State Graduating Class 2017”
the threshold. The percentage of
students meeting math and science
benchmarks was roughly 45 percent.
The percentage of Iowa students
meeting all four benchmarks for
English, reading, math and science

10
was roughly 31 percent, a measure Percentage of Iowans who met ACT benchmarks by race/ethnicity
that has remained fairly constant 35%
over the past 5 years.2
33% 33%
Like high school graduation rates, 30% 31% 31%
performance on ACT benchmarks
varies significantly with race/
25%
ethnicity. White and Asian students
24%
are most likely to meet all four
subject benchmarks, and Asian 22%
20%
students are the most likely to meet
the STEM benchmark.
15%
Income can also be correlated to 14%
ACT performance, and the gap is
growing slightly every year. Since 10%
10%
2013, scores for wealthier students
have been rising slightly, while
5% 6%
scores for less wealthy students have
4%
been slipping.4
0%
ALL White Hispanic Black Asian

All four subject benchmarks STEM benchmark

Source: ACT, “The ACT Profile Report—Iowa: Grad Class 2017”

IOWA ASSESSMENTS
Iowa Assessments by race/ethnicity
The Iowa Assessments (formerly 50%
known as the Iowa Test of Basic 50%
Skills) are a battery of standardized
tests given in grades K–12 to gauge 44% 44%
43%
college and career readiness. Unlike 40%
the ACT, all students are required to 40% 39%

take the Iowa Assessments.

Like the ACT, the Iowa Assessments 30%
show a discrepancy in college
readiness among students of different
races and ethnicities. The college-
ready numbers were higher for white 20% 22%
20%
and Asian students and dramatically
lower for Hispanic and black 15%
students. Asian students were four 10% 12%
times as likely to be college-ready in
math as black students.5
Readiness rates were also lower
0%
among low-income students. Among
ALL White Hispanic Black Asian
students who qualify for free or
reduced-price lunches, 21 percent College-ready in math College-ready in reading
tested as college-ready in math Source: Iowa Department of Education, “2017 Iowa School Report Card”
and 23 percent as college-ready in
reading—19 and 16 percentage
points below the average for all
students, respectively.

11
REMEDIATION Iowa high schoolers in college-level classes

Remediation is the preparatory

education that some students who
‘06-07
enroll in college are required to 21,587
complete before they begin college-
level courses. The percentage of
Iowa community college students ‘07-08 23,400
who enroll in remedial courses has
declined by about 4 percent since
2013. Still, in 2016–17, 9 percent
‘08-09 27,346
of community college students (about
12,000) were enrolled in at least one
remedial course. The most common
remedial courses were in math.6 ‘09-10 29,721
Minority and low-income students
are overrepresented in remedial
courses. In 2016–17, minority ‘10-11 32,726
students accounted for about one-fifth
of Iowa’s community college student
population, but they made up about
‘11-12 34,513
40 percent of the students enrolled in
remedial courses.6

JOINT ENROLLMENT ‘12-13 36,026

In a potentially positive sign of

readiness for both college and
careers, the number of Iowa high ‘13-14 39,159
school students taking college-level
courses doubled from 2006–07
to 2016–17. In 2016–17, almost ‘14-15 40,263
44,000 students at Iowa high schools
were jointly enrolled in college-level
courses.7 The most common courses
are technical/vocational, representing ‘15-16 42,326
more than a third of joint enrollments
in 2015–16.8
‘16-17 43,843

0 10,000 20,000 30,000 40,000 50,000

Source: Iowa Department of Education, “The Annual Condition of Education Report,” 2017

12
4. COLLEGE SUCCESS
In this chapter, we discuss Iowa trends in college enrollment and completion as means to highlight
the progress we are making to create a highly educated workforce.
IOWA’S RANKINGS
As mentioned in Chapter 3,
Iowa’s high school graduation rate
ranks No.1 in the United States.
However, Iowa’s rankings slide in
postsecondary attainment levels.
For the proportion of residents with
associate degrees or higher, Iowa
slips to the middle of the pack at
27th. For bachelor’s degrees or
higher, Iowa falls further to 35th.
And for graduate degrees, Iowa
drops to 41st.
Complete chart of state-by-state
rankings: IowaCollegeAid.gov/
Condition18
ENROLLMENT
The number of Iowans enrolled
in college has seen a drop since
2010, driven largely by falling
online enrollment at private for-profit
institutions, where numbers have fallen
85 percent. Iowa is not alone in this
trend. Nationally, for-profit enrollment
has fallen by about 10 percent each
term since spring 2016.1
The landscape of for-profit colleges
has changed considerably in Iowa in
recent years. In 2016, ITT Technical
Institute ceased all operations, and
University of Phoenix closed its Iowa
campus. Purdue University purchased
the online for-profit Kaplan University
to create the new public Purdue
University Global this year, and
Undergraduate enrollment in Iowa colleges
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
2010 2011 2012 2013 2014 2015 2016 2017
OVERALL Regents Private not-for-profit
Private for-profit Community
Source: “Iowa College and University Enrollment Report,” Fall 2017, Iowa College Aid
Vatterott College stopped accepting increase of job opportunities that came
new enrollments in Iowa in fall 2017. with the economic recovery. Private
Those changes have yet to affect not-for-profit institutions experienced a
enrollment numbers reported here. smaller loss, at 7 percent.
However, Ashford University closed Minorities made up 16.9 percent
its physical Iowa campus in 2016, of total enrollment at Iowa’s college
which had seen enrollment of over and universities in the fall of 2017.
600 students. Ashford’s closure is
More than half of black students were
reflected in these numbers. enrolled in community colleges, and
Regent universities saw a small but black students were more likely to
steady climb from 2010 to 2017, with attend private institutions (for-profit and
a net gain in enrollment of 12 percent. not-for-profit) than Regent universities.
Community college enrollment has Asian students were the most likely
dropped by 14 percent since 2010, to attend Regent universities, at more
with enrollment decline reflecting the than 2 in 5.2
13
Iowa students younger than 18 Undergraduate enrollment in Iowa by race/ethnicity
are overwhelmingly enrolled in 100%
community college due to Senior Year 44.0% 49.6% 56.3% 40.5%
Plus, programs that give high school
students access to college-credit
courses. Students in the traditional
college age range (18–24) are 80%

most likely to be enrolled in Regent

universities. Nontraditional students
(25 and older) are most likely to
be enrolled in private for-profit 60%
institutions.3 1.6%
1.9% 15.2%
The lowest-income students—those 19.4% 2.8%
eligible for the federal Pell Grant—
are most likely to enroll in two-year 17.5%
40% 5.3%
institutions. Nearly half of Pell 42.7%
recipients enroll in community colleges, 20.6%
34.7%
nearly a quarter in Regent universities
and nearly another quarter in private 30.1%
not-for-profit institutions. (These figures 20%
do not include online enrollment.)
17.8%
Private institutions have the
highest percentage of students
from outside Iowa, at just over half. 0%
Roughly a third of students at Regent White Hispanic Black Asian
universities come from out of state,
and at community colleges the Regents Private not-for-profit Private for-profit Community
proportion is a little over 1 in 10.4 Source: “Student & Faculty Diversity Report,” 2018, Iowa College Aid

Sector enrollment by age in Iowa*

3.5% 6.9%
2%

12.3%
30%
31.1%
40.8%

94.4% 50.7%

5% 23.1%

Under 18 18–24 25 and older

Regents Private not-for-profit Private for-profit Community

Source: Integrated Postsecondary Education Data System, National Center for Education Statistics

*Barber and cosmetology schools did not submit this data in 2016.

14
RETENTION & PERSISTENCE Retention rates by sector in Iowa
100%
Enrollment is only one step we can
measure toward attainment of higher 85%
education. The next measures are 80%
student retention and persistence. 72%
These terms are similar but not quite
the same. Retention is an institutional 60% 59%

measure reflecting a student’s return

to the same institution the following
year. Persistence is a measure of a 40%
35%
student’s enrollment in any institution
the following year.
20%
Overall retention at institutions in
Iowa was 62 percent for students
who entered college in the fall of 0%
Regents Private Private Community
2015—the 18th highest rate in the not-for-profit for-profit
nation. Persistence for those students
Source: Integrated Postsecondary Education Data System, National Center for Education Statistics
was 76 percent, or 17th in the
nation.5 Retention rates are highest at
the Regent universities and lowest at
private for-profit institutions.3 Retention rates by age in Iowa

Retention and persistence rates

combined are highest among Asian
students and lowest among black Under 20
63.3% 78.9%
students. The rate of Asian students
who return to college (at the same
or a different institution) after their
first year is more than 17 percentage
points higher than the rate for 51.8% 55.2%
21–24
black students. White students are
the mostly likely to change schools
between year one and year two.
Retention and persistence are highest
among students under 20, the 53.9% 56.3%
25 and older
demographic that includes students
who move directly from high school
into higher education. Retention and
persistence rates are similar among 0% 10% 20% 30% 40% 50% 60% 70% 80%
21- to 24-year-olds and students who
Retention Persistence
are 25 and older.
Source: ”Snapshot Report—First-Year Persistence and Retention,”
Nationally, higher income is also National Student Clearinghouse Research Center
correlated to persistence. Of students
who attended high schools where
more than 50 percent of the student
body qualified for free or reduced-
price lunches (FRPL), 80 percent
persisted from their first to second year
of college. Of students who attended
high schools where 50 percent or less
qualified for FRPL, 89 percent persisted
from year one to year two.6
15
 Iowa graduation/transfer rates by sector GRADUATION
100%
College attainment rates are
generally measured in the time it
takes students to earn a degree as
80%
a percentage of the expected time.
At four-year colleges and universities,
for instance, the 100 percent time
60%
reflects the number of students who
earn a degree within four years;
150 percent time, the number of
40%
students who earn a degree within
six years; and 200 percent time, the
number who earn a degree within
20% eight years.
In Iowa, the highest 100 percent
time graduation rate—47 percent—
0%
Regents Private Private Community Barber and
is at private not-for-profit institutions.
not-for-profit for-profit** cosmetology By the 150 percent and 200 percent
time marks, Regent universities have
100% time 150% time 200% time Transferred out
the highest rates, at 68 percent and
Source: Integrated Postsecondary Education Data System, National Center for Education Statistics 70 percent respectively. Private
institutions have the highest rate of
students transferring to other schools,
Iowa graduation rates by socioeconomic status at 27 percent.*
80% Nationally, the six-year graduation
rate is highest for Asian and white
70% students and lowest for black
68.3% students. After six years, 63 percent
60%
60.8% of Asian students and 62 percent
59.5%
57.9% 56.8% of white students have earned a
50% degree, either at the institution where
48.5% they first enrolled or at a different
40% institution. For black students, that
number is 38 percent.
30% 32.7% Younger students have higher six-
27.6% year graduation rates than older
25.8%
20% students. Of those who are 20 and
younger when they first enroll in
10% college, 60 percent have a degree
10.6%
six years later. For students 20 to
0%
Regents Private Private Community Barber and
24 and students over 24 at the
not-for-profit for-profit cosmetology time they start college, the rates
are 39 percent and 41 percent,
All Pell Grant recipients
respectively.
Source: Integrated Postsecondary Education Data System, National Center for Education Statistics

*Of private not-for-profit institutions, 40 percent reported their transfer rates. Of private for-profit institutions, only Kaplan University–Davenport and Waldorf
University reported graduation rates, and only Waldorf University reported transfer rates. Of community colleges, 14 of 17 reported transfer rates; students who
received any credential are not counted as transfers. Of barber/cosmetology schools, 2 of 26 reported transfer rates.
**150% time and 200% time are less than 1 percent.

16
In most sectors of higher education
in Iowa, Pell Grant recipients (who
qualify for the grant based on
financial need) are slightly less likely
to graduate within 150 percent time
than the student population as a
whole. The exception is private, for-
profit schools, where Pell recipients
are three times as likely to graduate
within 150 percent time.
Failure to complete a degree within
100 percent time can be costly.
A fifth year of college at a four-
year institution costs an average
of $140,000, including tuition,
fees, books, room and board, loan
interest, missed salary and retirement
savings. At a community college,
a third year costs an average of
$94,000.7
Students who do not complete any
degree are more likely to default
on student loans (24 percent) than
students who do earn a degree
(9 percent). Default rates are
highest among students who leave
community colleges (29 percent)
and private, for-profit institutions
(28 percent) without a degree.8

STEM DEGREES
From 2011–12 to 2014–15, the number of STEM degrees awarded increased across all sectors of higher
education in Iowa. At community colleges, the increase was 3 percent. At Regent universities, it was
18 percent. At four-year private, not-for-profit institutions, it was 7 percent.
Men hold the majority of degrees in STEM fields in Iowa. They represent about 82 percent of STEM degrees
from community colleges and 69 percent of STEM degrees from Iowa’s Regent universities. However,
women are gaining ground. The number of women graduating with STEM degrees from Regent universities
grew 14 percent from 2011–12 to 2014–15. Minorities are also an increasing presence in STEM areas of
study. In 2016, STEM degrees awarded to minority graduates at Iowa’s community colleges rose 23 percent
over the previous year and 144 percent compared to 2011.9

Community college STEM awards to minority students in Iowa

1,000
992

800 854
806

600
615

400 476
407

200

0
2011 2012 2013 2014 2015 2016

”2016–17 Iowa STEM Evaluation Report,” Governor’s STEM Advisory Council

17
5. COLLEGE PRICE
In this chapter, we examine the trends in college pricing relative to family income, and how these
pricing changes have affected college affordability in the state of Iowa.

PRICE AS A BARRIER where individuals assumed college 15 percent when their families
was too expensive, and because have an extra $10,000 available.3
The rising price of higher education
of this assumption, dismissed the Even small amounts of savings can
often stands in the way of college
prospect of attending college. 2 The significantly increase postsecondary
aspirations. Fewer than 1 in 4
same studies have found that many enrollment. Young people who have
adults believe college is affordable
individuals overestimate the actual a savings account in their name are
to everyone in the United States.1
price of a college degree. six times as likely to go to college.
Perception of college affordability
Students’ decisions to enroll in Children who have between $1 and
is an important aspect of an
college have been linked to their $499 saved for higher education are
individual’s college decisions, and
families’ financial resources. College three times as likely to go to college
the level of knowledge can affect
enrollment among students from and four times as likely to graduate.4
that decision. For example, research
has consistently found instances low-income families increases by

Net college price in Iowa in 2015–16

$30,000

$25,000

$20,000

$15,000

$10,000

$5,000

$0
Regents Private Private Community Barber and
not-for-profit for-profit cosmetology

Average Net Cost Income $0–$30,000 Income $30,001–$48,000

Income $48,001–$75,000 Income $75,001–$110,000 Income >$110,000

Sources: U.S. Department of Education; Institute of Education Sciences,

National Center for Education Statistics

18
AVERAGE COLLEGE PRICE
Net college price as a percentage of income in Iowa
The actual price that a student pays 50%
for tuition and other fees can be
considerably less than the published
price at a college or university. A 40%

combination of federal, state and

institutional aid can greatly reduce 30%
the price of attendance (also referred
to as the cost of attendance).
20%
One way to measure the
affordability of college is to
consider the net price of college as 10%
a percentage of median household
income, which was $54,736 in Iowa 0%
in 2015.5 The highest price relative Regents Private Private Community Barber and
to Iowa income is at private not-for- not-for-profit for-profit cosmetology
profit institutions, and the lowest is at Sources: U.S. Census American FactFinder; Integrated Postsecondary Education Data System,
community colleges. National Center for Education Statistics

CHANGE IN PRICE doubled. At private not-for-profit reduced state funding. Iowa

institutions, that figure increased appropriated approximately
College price as a percentage
about 50 percent.6 (It is worth $581 million to the three Regent
of income has risen since 2000.
noting that the relative price at universities in 2017—a reduction of
Although the increase has leveled
Regent universities started at a much about $89 million, or 13 percent,
off in the past few years, the change
lower point.) from 2008. In that same time frame,
since 2000 is significant. Price
One factor contributing to rising total undergraduate enrollment
relative to income rose the most at
tuition at Regent universities is at Regent universities grew from
Regent universities, where it nearly
70,300 to 81,600, or 16 percent.

Change in college price in Iowa as a percentage of median income

60%

50%

40%

30%

20%

10%

0%

‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15

Regent Private not-for-profit Community

Sources: Iowa College Student Aid Commission Annual Student Budget Survey, U.S. Census Bureau

19
6. FINANCIAL AID
In this chapter, we discuss the trends in student financial aid in Iowa and highlight the extent to
which this aid is helping to cover the rising price of higher education.

FOUR BASIC TYPES OF FINANCIAL AID

Federal State Institutional Private

Funded by the Appropriated Funded and awarded From all
U.S. Department of by the Iowa by colleges & other sources
Education Legislature universities

ACTUAL PRICE
Net versus published college price in Iowa
TO STUDENTS
$50,000
Financial aid has a significant
impact on the actual amount students $40,573
pay for college. The net price (price $40,000
of attendance after federal, state,
and institutional aid) as a percentage
$30,000
of published price varies according
$25,598
to higher education sector. In
2015–16, the net price in Iowa was $20,106 $21,235
$20,000 $18,157
71 percent at Regent Universities $15,852
$14,205
and private for-profit institutions,
57 percent at community colleges $10,000 $9,090
and 52 percent at private not-for-
profit institutions.1
0
Regents Private Private Community
not-for-profit for-profit

Net cost Published cost

Source: Integrated Postsecondary Education Data System, National Center for Education Statistics

20
IOWA FAFSA FILERS
Number of Iowans filing the FAFSA
In order to receive any federal 250,000
financial aid, most state financial aid
and even many forms of institutional
aid, students must file the Free 200,000

201,061

202,074

194,982
Application for Federal Student

190,829

184,872
Aid, or FAFSA. In 2016–17, the

175,424

166,280
164,883
150,000
number of Iowans filing the FAFSA

158,580

157,444
was 157,444, which is 5 percent
lower than the previous academic
100,000
year. The number of filers has been
gradually declining since 2011–12
and is reflective of Iowa’s recovery 50,000
from the Great Recession. As job
availability has improved over time,
some Iowans were more likely to 0
‘07-08 ‘08-09 ‘09-10 ‘10-11 ‘11-12 ‘12-13 ‘13-14 ‘14-15 ‘15-16 ‘16-17
enter the workforce than to enroll in
college. Overall, 61 percent of Iowa Source: “Free Applications for Federal Student Aid (FAFSA) filed by Iowa Residents,
September 2017,” Iowa College Aid
high school seniors filed the FAFSA,
down 8 percentage points from the
peak in 2009–10 when 69 percent number reflects the amount a pre-recession levels. In 2007–08,
filed the FAFSA.2 student and/or student’s family the share of filers with an EFC of
can contribute toward college. The 0 was 28 percent. It increased
Data from the FAFSA is used to
share of Iowa FAFSA filers with an to 39 percent in 2010–11 and
determine a student’s Expected
EFC of 0 rose during the recession then decreased in 2016–17 to
Family Contribution, or EFC. This
but has since fallen back to almost 32 percent.3

Expected Family Contribution of Iowa FAFSA filers

50,000
49,827

40,000

30,000
25,138

20,000
19,834

14,689

10,000
11,681

4,774

4,622
4,140
8,933

7,329

5,996

0
$0 $1– $2,501– $5,001– $7,501– $10,001– $12,501– $15,001– $17,501– $20,001+ No EFC
$2,500 $5,000 $7,500 $10,000 $12,500 $15,000 $17,500 $20,000 calculated

Source: Iowa College Aid FAFSA data, 2016–17

21
FEDERAL FINANCIAL AID Iowa scholarship and grant appropriations by year

In 2017–18, four federal grant $80,000,000

programs were available to college
students: $70,000,000

$70,892,101

$69,776,888
$68,717,100

$67,208,000
• Pell Grant—available to students

$64,824,935
$60,000,000

$63,482,572
who have financial need

$59,008,297

• Federal Supplemental Educational
Opportunity Grant (FSEOG)—
available to students who have
financial need
• Teacher Education Assistance for
College and Higher Education
(TEACH) Grant—available
to students in elementary or
secondary education programs
(must be repaid if employment
obligations are not met)
• Iraq and Afghanistan Service
Grant—available to students
whose parent or guardian was a
member of the armed forces killed
during service after 9/114
The largest source of nonrepayable
federal aid is the Pell Grant. In
2016–17, students who had an
EFC less than $5,234 were Pell
eligible. The maximum award was
$5,815.5 In 2016–17, 46 percent
of Iowans who filed the FAFSA were
Pell eligible, down from a peak
of 54 percent in 2010–11 and
2011–12.2 In 2016–17, roughly
$316 million in Pell Grants was
awarded to students attending
Iowa institutions with an average
award amount being approximately
$3,500.6 Students who do not apply
for financial aid are missing out
on millions of dollars for college.
In Iowa, 2014–15 high school
graduates who did not file the FAFSA
could have increased the Pell awards
in Iowa by an estimated $20 million
if they had filed.7
$57,605,112
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
0
‘10-11 ‘11-12 ‘12-13 ‘13-14 ‘14-15 ‘15-16 ‘16-17 ‘17-18
Source: “Appropriations by Year 1989 to 2018,” Iowa College Aid
STATE FINANCIAL AID The largest state-funded financial aid
program is the Iowa Tuition Grant*
In 2017–18, Iowa appropriated
for private not-for-profit institutions. In
$822 million to higher education.
2017–18, funding for this program
The bulk of that amount went to
was $46,630,951, or nearly
Regent universities and community
three-quarters of scholarship and
colleges. Less than 8 percent
grant appropriations.9 (See chart,
went to state financial aid
opposite.)
programs. Appropriations to Iowa
In 2016–17, the state of Iowa
scholarships and grants peaked in
funded 20,807 grant and
2014–15 at roughly $71 million
scholarship awards totaling
but have gradually declined each
$66,392,369.10 Below is a
year since. Appropriations in
breakdown of Iowa’s five largest
2017–18 were $63.6 million,
grant and scholarship programs in
which was down 4 percent from
2016–17:
the year before.8
Iowa aid awarded by program
Number Average
Program of awards award
Iowa Tuition Grant Not-for-Profit 10,619 $4,579
Skilled Workforce Shortage Tuition Grant
4,415 $1,128
(Kibbie Grant)
Iowa Vocational-Technical Tuition Grant 2,674 $868

Iowa National Guard Educational 1,127 $4,273

Assistance Program

All Iowa Opportunity Scholarship 726 $4,477

Source: “Summary of Payments by Institution,” Iowa College Aid

22
 Iowa scholarship and grant appropriations by program

Iowa Tuition Grant Not-for-Profit

73.45%
Skilled Workforce Shortage Tuition Grant
(Kibbie Grant)
7.88%
Iowa National Guard Educational
Assistance Program
4.88%
All Iowa Opportunity Scholarship
4.48%
Iowa Vocational-Technical Tuition Grant
2.76%
Iowa Tuition Grant For-Profit
2.36%
Rural Iowa Primary Care Loan Repayment
1.77%
Administration—General
.67%
DMU Recruitment Program
.63%
Teach Iowa Scholar Program
.63%
Registered Nurse & Nurse Educator Loan
Forgiveness
.32%
Iowa Teacher Shortage Loan Forgiveness
.17%
Source: “State-Administered College Financial Aid Programs,” Iowa College Aid

More than half of total state grant Iowa awards by sector

and scholarship awards made in 4%
2016–17 went to students at private
not-for-profit institutions. Those 6%
awards accounted for more than 3% 15%
three-quarters of the total dollar
amount given by the state.11 38%

The number of awards and dollars

53%
going to students at private, not-for-
76%
profit institutions is driven by the
Iowa Tuition Grant for not-for-profit
institutions, which, as previously 5%
stated, is the state’s largest state Total dollars awarded Total number of awards
financial aid program.
*The Iowa Tuition Grant was established in 1969 to Regents Private not-for-profit Private for-profit Community
make the price of private colleges and universities
more comparable to the price of Regent universities. Source: “Summary of Payments by Institution,” Iowa College Aid

23
INSTITUTIONAL Institutional aid per student at Iowa institutions (all enrolled students)
FINANCIAL AID $12,000
$10,914
Students might also receive
institutional aid, awarded directly $10,000
by their college or university. These
awards could include IMAGES $8,000
(Iowa Minority Academic Grants
for Economic Success); academic $6,000
scholarships; athletic scholarships;
and tuition waivers for faculty,
$4,000
staff and dependents. In Iowa, the
$2,533
average institutional aid awarded
$2,000
per student is highest at private
not-for-profit institutions, at nearly $127 $223
$11,000. It is lowest at private for- 0
Regents Private Private Community
profit institutions, at about $127.11 not-for-profit for-profit

Source: ”Student Financial Aid at Iowa Colleges and Universities Academic Year 2016–17,”
PRIVATE FINANCIAL AID Iowa College Aid

Funding from all other sources (not

federal, state or institutional) is
considered private financial aid. Private grants and scholarships per student at Iowa institutions
Students usually seek out these grants (all enrolled undergraduates)
and scholarships on their own from $800
businesses, foundations, religious
$700 $660
organizations, community groups,
fraternal organizations and other $600
sources. In Iowa, private financial
aid per student is highest at Regent $500
universities, at $660, and lowest $420
$400
at private, for-profit institutions, at
barely $6.11 $300

FAMILY SAVINGS $200

$99
In the United States, the average $100
family with children 18 and younger $6
is on track to cover less than one- $0
Regents Private Private Community
third of college expenses with not-for-profit for-profit
savings. Nearly three-quarters of
Source: ”Student Financial Aid at Iowa Colleges and Universities Academic Year 2016–17,”
these families say they have started Iowa College Aid
saving for college, and about 4 in
10 say they are investing in 529
savings accounts, or “qualified
tuition plans,” which are sponsored
by states, state agencies or
educational institutions.12 The state of
Iowa currently sponsors a 529 plan
through College Savings Iowa.

24
7. STUDENT LOAN DEBT
In this chapter, we examine student loan debt specific to Iowa and highlight the specific
institutional sections where students are more likely to borrow and repay their debt.

STUDENT LOAN DEBT Percent of undergraduates awarded federal student loans in Iowa (2015–16)
IN IOWA 80%

In 2015–16, roughly half of all 70%

68%
Iowa undergraduates took out 64%
60%
student loans to pay for college. 58%
The sector with the highest rate of 50%
48% 48%
borrowing in Iowa is private, not- 40%
for-profit colleges—68 percent of
undergraduates took out loans that 30% 33%
year, with the average amount being 20%
roughly $7,500. The sector with
10%
the lowest amount of borrowing is
Iowa community colleges—a third of 0%
ALL IOWA Regents Private Private Community Barber and
students borrowed. The differences INSTITUTIONS not-for-profit for-profit cosmetology
in borrowing amounts across sectors
reflect differences in tuition rates. As Source: Integrated Postsecondary Education Data System, National Center for Education Statistics

we highlighted in Chapter 5, private

not-for-profit colleges have the
highest tuition rates in Iowa, whereas Average amount of federal student loans awarded
community colleges have the lowest. to undergraduates in Iowa (2015–16)

Among students who graduated from $8,000

four-year colleges and universities in $7,000 $7,508
$7,198 $7,214
Iowa in 2016, the average student
$6,565
loan debt was $29,801. That $6,000 $6,319
average is the 19th highest in the $5,000 $5,451
United States. Among those same
students, 65 percent graduated with $4,000

some student loan debt, ranking $3,000

Iowa eighth highest in the nation.1
$2,000

$1,000

$0
ALL IOWA Regents Private Private Community Barber and
INSTITUTIONS not-for-profit for-profit cosmetology
Source: Integrated Postsecondary Education Data System, National Center for Education Statistics

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DEFAULT RATES IN IOWA Average student loan default rates in Iowa
20%
More than 8 million student loan
borrowers in the United States are 18.3%
in default.2 In Iowa, 12.6 percent
15%
of student borrowers who were 14.6%
13.8%
scheduled to begin repayment in 12.6%
2014 were in default within three
10%
years. That percentage is slightly
higher than the national figure,
11.2 percent.3 Iowa ranks 34th in the 5% 6.0%
nation in student loan default rates.
3.0%
When examining default rates by
institutional sector, Iowa for-profit and 0%
ALL IOWA Regents Private Private Community Barber and
community colleges have the highest INSTITUTIONS not-for-profit for-profit cosmetology
default rates at 15 and 18 percent
Source: Official Cohort Default Rates, U.S. Department of Education
respectively, whereas Regent and
private, not-for-profit colleges have
rates that are comparatively low at 3 are to have taken out student loans, who had not attained a degree or
and 6 percent respectively. but the less likely they are to default. credential defaulted within 12 years.
Among borrowers who began college The rate for those who attained a
The higher the education level in 2003–04, 45 percent of those bachelor’s degree was 8 percent.4
attained, the more likely students

DEMOGRAPHICS OF DEBT IN THE U.S.

Outstanding student loan debt exceeds $1 trillion in the United States and is the second highest form of debt
behind mortgages. More than 43 million adults carry student loan debt.5 A look at borrowing among different
student populations:
• Race/ethnicity­—Black students are the most likely to take out federal student loans, and they make the
least progress in paying down their debt.6
• Sector—The highest percentage of student loans is taken by students at private for-profit institutions.6
• Age—The higher the age bracket, the faster student loan debt is growing.7
• Income—The highest-income students initially carry the most debt but also pay it down the fastest.4
• Gender—Women borrow more than men and get paid less after graduation, contributing to the fact that
women hold two-thirds of student loan debt in the United States.8
• Education level—Students who go on to earn bachelor’s degrees or higher carry the least debt.
Students who are still enrolled after six years but have not earned a degree end up with the highest
median debt.4

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LOOKING AHEAD
Since the release of our “2016 Condition of Higher Education in Iowa,” the state has gained momentum in fostering
a college-going culture. Most of these efforts are happening at regional or community levels, and their impacts are
becoming quantifiable.
GEAR UP Iowa helps school districts develop resources to make college possible for low-income students. Research
on the first cohort (who graduated from high school in 2014) in southeastern Iowa found positive effects: High school
graduates who participated in GEAR UP Iowa were 3 to 4 percentage points more likely to go to college than students
who did not receive such resources.1 The research also found that particular services, such as college visits and
financial aid counseling, had the biggest impact on college enrollment.2 The second cohort of GEAR UP Iowa are
scheduled to graduate from high school in 2020.
Iowa College Aid works with high schools through Course to College, a program that provides administrators,
school counselors and teachers with resources to address college awareness, college application, FAFSA
completion, college choice and summer transition from high school to postsecondary education. Through an online
portal, schools will soon be able to collaborate and share best practices. Since its inception, Course to College has
witnessed significant growth, from 32 schools in the 2013-14 academic year to more than 130 in 2017-18.
Iowa College Aid also supports community-based efforts through Local College Access Networks (LCANs). LCANs
are locally driven collaborative efforts to identify and address systemic gaps, inequities and barriers that hinder
individuals from attending college. To date, Iowa College Aid has awarded LCAN grants in12 communities
throughout the state, with the most recent round announced in July 2018.
Future Ready Iowa is a state initiative to increase Iowa’s skilled workforce supply and create career opportunities
for Iowans. One of its components is the creation of a new last-dollar scholarship program that will allow Iowans
to obtain an associate degree in high-need programs of study, tuition-free. Expected to be available for the 2019-
20 academic year, this program could not only improve college access, but also decrease dependence on student
loans. This scholarship builds on two existing grants available to community college students, the Iowa Vocational-
Technical Tuition Grant (Voc-Tech) and the Iowa Skilled Workforce Shortage Tuition (Kibbie) Grant. Recent research
on these two programs suggests that recipients were not only more likely to earn a credential, but completed their
program of study in less time.3 Given the effects of these two grants and the targeting of a similar audience, it is easy
to speculate that the new last-dollar scholarship could provide comparable impacts.
In general, Iowa is taking the necessary steps to create an educated citizenry. The short-term impact of these
efforts has been recognized. The longer-term impacts will become more apparent over time as we continue to push
strategies that improve college access, enrollment and completion.
27
SOURCES
1. BENEFITS OF A COLLEGE 3. COLLEGE READINESS
DEGREE (pages 9–12)
(pages 2–5)
1 “Education Pays 2016: The Benefits of
Higher Education for Individuals and
Society,” CollegeBoard
2 ”Population Bulletin: The Effect of
Educational Attainment on Adult
Mortality in the United States,” Hummer
and Hernandez
3 “Current Cigarette Smoking Among
Adults—United States, 2005–2015,”
Centers for Disease Control and
Prevention
4 ”Education at a Glance 2016: OECD
Indicators,” OECD Publishing
5 “Iowa: Education and Workforce Trends
through 2025,” Georgetown University
Center on Education and the Workforce
6 U.S. Census Bureau American FactFinder
(2016 data)
7 “2013 Iowa College Student Analysis:
A Survey of Iowa’s College Students,”
Iowa Workforce Development
8 ”Education Outcomes: Certificate,
Diploma, and Associate Degree
Programs/Iowa Community Colleges
Academic Year 2012 to Academic Year
2016,” Iowa Department of Education
9 “The Post-Traditional Learners Manifesto
Revisited,” American Council on
Education
2. IOWA’S
DEMOGRAPHICS
(pages 6–8)
1 U.S. Census Bureau American FactFinder
(2016 data)
2 ”The Annual Condition of Education
Report,” Iowa Department of Education,
2017, 2001
3 U.S. Census Bureau, Summary File 1,
1970–2010
4 Pew Research Center Factank, March 19,
2018
5 U.S. Census American FactFinder
28
1 Common Core of Data, National Center
for Education Statistics
2 “The Condition of College & Career
Readiness 2017—Iowa,” ACT
3 “What Are the ACT College Readiness
Benchmarks?” ACT
4 “Scores Down for 2016 U.S. Grad
Class Due to Increased percentage of
Students Tested,” ACT
5 “2017 Iowa School Report Card,” Iowa
Department of Education
6 “The Annual Condition of Iowa’s
Community Colleges 2017,” Iowa
Department of Education
7 “The Annual Condition of Education
Report,” 2017, Iowa Department of
Education
8 “2016–17 Iowa STEM Evaluation
Report,” Governor’s STEM Advisory
Council
4. COLLEGE SUCCESS
(pages 13–17)
1 “Current Term Enrollment Estimates—
Spring 2017,” National Student
Clearinghouse Research Center
2 “Student & Faculty Diversity Report,”
Iowa College Aid
3 Integrated Postsecondary Education Data
System, National Center for Education
Statistics
4 “Student & Faculty Diversity Report,”
Iowa College Aid
5 ”Snapshot Report—First-Year Persistence
and Retention,” National Student
Clearinghouse Research Center
6 “High School Benchmarks 2017,”
National Student Clearinghouse
Research Center
7 NerdWallet; “American Community
Survey,” Earnings in the Past 12 Months,
2016 data; Integrated Postsecondary
Education Data System
8 ”Two-Year Student Loan Default Rates by
Degree Completion Status over Time,”
CollegeBoard
9 ”2016–17 Iowa STEM Evaluation
Report,” Governor’s STEM Advisory
Council
5. COLLEGE PRICE
(pages 18–19)
1 ”Postsecondary Education Aspirations
and Barriers,” Lumina Foundation
2 “Is Opportunity Knocking? Low-Income
Students’ Perceptions of College and
Financial Aid,” M.L. De La Rosa,
American Behavioral Scientist, 2006;
“Increasing African Americans’
Participation in Higher Education:
African American High-School Students’
Perspectives,” K. Freeman, Journal of
Higher Education, 1997; “High Costs,
Uncertain Benefits,” A.P. Kelly, Center
on Higher Education Reform, American
Enterprise Institute, 2015
3 ”Resource Barriers to Postsecondary
Educational Attainment,” The National
Bureau of Economic Research
4 “Relationships Between College Savings
and Enrollment, Graduation and Student
Loan Debt,” 2013, and “The Role of
Savings and Wealth in Reducing ‘Wilt’
between Expectation and College
Attendance,” 2010, Center for Social
Development, Washington University
5 U.S. Census American FactFinder
6 Iowa College Student Aid Commission
Annual Student Budget Survey, U.S.
Census Bureau
6. FINANCIAL AID
(pages 20–24)
1 Integrated Postsecondary Education Data
System, National Center for Education
Statistics
2 “Free Applications for Federal Student
Aid (FAFSA) filed by Iowa Residents,
September 2017,” Iowa College Aid
3 Iowa College Aid FAFSA data
4 ”Federal Student Grant Programs,”
Federal Student Aid
5 ”Federal Pell Grant Payment and 8 “Deeper in Debt: Women and Student
Disbursement Schedules,” Federal Loans,” American Association of
Student Aid University Women
6 ”Distribution of Federal Pell Grant
LOOKING AHEAD
Program Funds by Institution,” U.S.
(page 27)
Department of Education
1 “Improving College Access at Low- IOWA COLLEGE AID
7 ”How Students Missed Out on $2.7
Income High Schools? The Impact Executive Director
Billion in Free FAFSA College Aid,”
of GEAR UP Iowa on Postsecondary Karen Misjak
NerdWallet
Enrollment and Persistence,” N.
8 “Historical Appropriations Summary,” Division Administrators
Bowman, K. Sanga, L. Ingleby, D.
Iowa College Aid Todd Brown
Ford, C. Sibaouih, 2018
Christina Sibaouih
9 “State-Administered College Financial 2 “Promoting Educational Success: Julie Ntem
Aid Programs,” Iowa College Aid Which GEAR UP Services Lead
Research
10 “Summary of Payments by Institution,” to Postsecondary Enrollment
Dr. Mark Wiederspan
Iowa College Aid and Persistence?” K. Sanga, N.
Dr. Laura Ingleby
Bowman, L. Ingleby, D. Ford, C.
11 ”Student Financial Aid at Iowa Colleges Dr. Adam Messer
Sibaouih, 2018
and Universities Academic Year 2016– Joe Dullard
17,” Iowa College Aid 3 “Effect of State Grants on
Communications
Community College Student
12 ”10th Annual College Savings Elizabeth Keest Sedrel
Postsecondary Outcomes,” L.
Indicator,” Fidelity Investment Jamie Fisher
Ingleby, 2017
Tressa Glass
7. STUDENT LOAN DEBT
(pages 25–26)
1 “Student Debt and the Class of 2016,”
The Institute for College Access &
Success
2 ”New data documents a disturbing
cycle of defaults for struggling student
loan borrowers,” Consumer Financial
Protection Bureau
3 “Cohort Default Rates by School,
Lender, State and Institution Type,” U.S.
Department of Education
4 “Repayment of Student Loans as of
2015 Among 1995–96 and 2003–04
First-Time Beginning Students,” Institute
of Education Sciences, National Center
for Education Statistics
5 “Federal Student Aid Portfolio
Summary,” U.S. Department of
Education
6 ”New Federal Data Show a Student
Loan Crisis for African American
Borrowers,” Center for American
Progress
7 “Student Loan Debt Explodes Across
Age Ranges,” FICO Blog

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 Iowa College Aid
475 SW Fifth St., Suite D
Des Moines, IA 50309-4608
877-272-4456 | IowaCollegeAid.gov

© 2018 Iowa College Student Aid Commission REV 08/18

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