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HF 577 – Perfect College Entrance Exam Scores, Free Tuition at Regents Universities
(LSB1864HV)
Staff Contact: Michael Peters (515.281.6934) michael.peters@legis.iowa.gov
Fiscal Note Version – New
Description
House File 577 requires the Board of Regents to waive undergraduate tuition and mandatory
fees for Iowa residents who achieve the highest possible score on the American College Test
(ACT), the Scholastic Aptitude Test (SAT), and the Classic Learning Test (CLT). Additionally,
eligible students will receive a $5,000 stipend per semester, provided they maintain satisfactory
academic progress toward graduation as defined by the Board.
Background
Currently, there is no existing program in Iowa that provides full tuition waivers or stipends
based solely on a student achieving a perfect score on a college entrance exam. Other
merit-based scholarships at Regents institutions, such as those provided through institutional
scholarship programs, do not guarantee full tuition coverage or stipends for perfect scores.
The ACT was created in 1959 by University of Iowa professor Everett Franklin Lindquist as an
alternative to the SAT, which was widely used by Iowa colleges and universities since the late
1930s. The Board of Regents currently uses the CLT, which was created in 2015, and accepts
this test for individual admission decisions, but the CLT is not included in the Regent Admission
Index. In Iowa, only 2.0% of high school students took the SAT, 48.0% took the ACT, and less
than 1.0% took the CLT in academic year 2024. Figure 1 shows the number of perfect scores
in the State by academic year.
Figure 1 — Perfect Iowa Test Scores 2022-2024
Figure 2 shows the estimated in-state undergraduate tuition and mandatory fees for FY 2025
for Iowa’s three Regents universities.
Figure 2 — FY 2025 Tuition and Mandatory Fees
High School Graduating CohortACT (36)SAT (1,600)CLT (120)
Academic Year 2022 36 0 0
Academic Year 2023 17 0 0
Academic Year 2024 16 0 0
Average 23 0 0 TuitionMandatory Fees Total
University of Iowa (SUI) 9,300$ 2,000$ 11,300$
Iowa State University (ISU) 9,300 1,500 10,800
University of Northern Iowa (UNI)8,600 1,400 10,000
Fiscal Note
Fiscal Services Division 2
Assumptions
• A total of 23 high school students are estimated to receive a perfect score each year.
• It is estimated that 25.0% (six students) per year will attend an Iowa university or college
and utilize this program, reaching 24 students in FY 2029.
• The waiver assumes each student remains enrolled for a standard four-year undergraduate
degree program, maintains satisfactory grades, and graduates on time.
• The $5,000 per semester stipend equates to $10,000 per year, per student.
• Tuition and mandatory fees are expected to increase 3.4% at SUI and ISU and 2.5% at UNI
based on the average of 10 years of tuition and fee increases.
• The fiscal impact will vary based on the university attended. This estimate is based on a
range of tuition rates that will be waived.
Fiscal Impact
When the program is at its estimated full enrollment of 24 students in FY 2029, the estimated
total fiscal impact is approximately $509,000 to $550,000. This includes $269,000 to $310,000
in reduced tuition revenue and an increase in stipend costs of $240,000.
Figure 3 — Estimated Fiscal Impact of HF 577
Sources
Board of Regents
Department of Education
LSA calculations
/s/ Jennifer Acton
March 10, 2025
Doc ID 1523633
Doc ID 1523633
The fiscal note for this Bill was prepared pursuant to Joint Rule 17 and the Iowa Code. Data used in developing this
fiscal note is available from the Fiscal Services Division of the Legislative Services Agency upon request.
www.legis.iowa.gov Lost Revenue/Student Lost Stipend
Fiscal Year (Low — High) StudentsRevenue CostTotal Cost
FY 2026 10,300$ 6 61,800$ 60,000$ 121,800$
11,700 70,20060,000 130,200
FY 2027 10,600 12 127,200120,000 247,200
12,100 145,200120,000 265,200
FY 2028 10,900 18 196,200180,000 376,200
12,500 225,000180,000 405,000
FY 2029 11,200 24 268,800240,000 508,800
12,900 309,600240,000 549,600