Post Secondary Education Subsidy

Iowa Supreme Court Rules on Post-Secondary Education Subsidy

When a Parent will be Required to Pay for a Portion of their Child’s College Education

On April 27, 2012 the Iowa Supreme Court entered a ruling regarding the parental requirement to pay a portion of children’s post-secondary education as outlined in Iowa Code Section 598.21F(2011). The statute provides that a court may order a “post-secondary education subsidy” if good cause is shown. The court will consider the age of the child, the child’s financial resources, whether the child is self-sustaining, and the financial condition of each parent in determining whether there is good cause to require the parents to pay for any of the child’s college education.

How Much will a Parent be Required to Pay?

If good cause is found to exist, the court will base the cost of the child’s college education on the cost for an in-state university where the child would receive a four year undergraduate degree. The court will then consider how much the child should reasonably be expected to contribute taking scholarships, financial aid, loans, and the child’s ability to work into consideration. After all of these considerations, the statute provides that neither parent should be required to pay more than one third of the entire cost of the child’s college education.

When Doesn’t a Parent have to Pay?

The post-secondary education subsidy will NOT be required of a parent that has been repudiated by the child. This means that if the child has publicly disowned the parent or refused to acknowledge the parent, there will be no requirement for that parent to pay for any of the child’s college costs. Also, if the child receives the post-secondary education subsidy, they will be required to report their grades to their parents ten days within receiving them and to maintain a grade point average above the median range.

Recent Iowa Supreme Court Decision

In the case recently ruled upon by the Iowa Supreme Court, the mother and father separated when their only daughter was an infant. The mother remarried a man who had a high income and enjoyed a comfortable lifestyle. The father remarried as well, had three additional children and then divorced for a second time. He earned a fairly good income, however unlike the mother, he had a high amount of debt and a very small net worth.
In its decision, the Court found there was good cause for the post-secondary education requirement because the daughter was 19 years old, doing well in college, and she was working part-time and contributing financially to her own college education, but not able to support herself entirely on her own. The Court considered the financial outlook of the father and noted that the same amount of sacrifice required of a parent in the support of a minor child is NOT required in the payment of a post-secondary education subsidy. They find that the father does not lead an extravagant lifestyle, and while he does make a good income, he should not be required to pay as high of a subsidy as determined by the Court of Appeals.
The Court affirmed the finding of good cause in requiring the post-secondary education subsidy, however reduced the amount the father was required to pay significantly.

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