Kaplan students: What will happen to your Iowa grant money after the Purdue acquisition

Date: 
Tuesday, January 23, 2018

January 23, 2018—Kaplan University is awaiting final approval from its accrediting agency to transition from an Iowa-based, for-profit institution to a public institution under the control of Indiana-based Purdue University. This transition is anticipated in early April 2018.

When the transition occurs, Kaplan University will assume a new name: Purdue University Global (PG). At that point, because Kaplan University will no longer be an Iowa-based institution but will be under the control of an Indiana-based institution, Kaplan University will no longer be eligible to provide Iowa-funded grants to students.

However, Kaplan University has announced that it will create an Iowa Resident Institutional Grant in the same amount as what students would have received from the Iowa Tuition Grant (ITG) program. PG’s Iowa Resident Institutional Grant is available following Kaplan University’s transition to Purdue University Global for all students who would have received funds from the ITG program, as long as each former ITG recipient remains continuously enrolled at the University. The following FAQs were created to help answer questions about what will happen to Iowa-funded grants and scholarships after Purdue University acquires Kaplan University.

Q: Will Purdue University Global students continue to receive the Iowa Tuition Grant (ITG)?

A: Kaplan University will honor the Iowa Tuition Grant until the completion of the acquisition of the University by Purdue University. Iowa law does not allow Iowa residents attending out of state institutions to receive Iowa-funded scholarships and grants, which includes the ITG program.

 However, once the acquisition is finalized, Kaplan University wants to ensure that if you are a student who was eligible to receive ITG funds, you will continue to receive funding in the same amount as what you would have received from the ITG program as a continuing student at Purdue University Global. In place of ITG, Purdue University Global will provide you with an Iowa Resident Institutional Grant. In the year in which the acquisition is finalized—which is expected in early April 2018—you will receive PG’s new Iowa Resident Institutional Grant for the difference between your full-year ITG award and the amount of any ITG funds already disbursed to you for that award year. Going forward, you will receive PG’s Iowa Resident Institutional Grant in an annual amount equal to your 2017-18 ITG eligibility amount. PG’s total annual Iowa Resident Institutional Grant award will be $2,400 per year, as long as you meet the following requirements while enrolled at Purdue University Global:

  • Iowa resident
  • Undergraduate enrollment
  • Continuously enrolled at Purdue University Global
  • File Free Application for Federal Student Aid (FAFSA) by July 1 of each year

PG’s annual Iowa Resident Institutional Grant amount will not change unless the ITG program is discontinued by the State of Iowa. If that occurs, you will no longer be eligible for PG’s Iowa Resident Institutional Grant for attendance at Purdue University Global.

Only students who are eligible to receive funds from the ITG program at the time of Kaplan University’s acquisition by Purdue University will receive PG’s Iowa Resident Institutional Grant after the acquisition.

Q: When does the Iowa Tuition Grant become the Purdue University Global Iowa Resident Institutional Grant?

A: Currently enrolled Iowa resident students who are eligible to receive the Iowa Tuition Grant (ITG) will continue to receive these funds until the close of the acquisition of Kaplan University by Purdue. After Kaplan’s transition to Purdue University Global, and to make certain ITG recipients continue to receive funding in the same amount they would have received from the ITG program, Purdue University Global will provide these students with an Iowa Resident Institutional Grant equal to the remaining balance of their 2017-18 ITG award as long as they remain continuously enrolled at the University and meet the qualifications set forth by the ITG program. In future years, continuously enrolled students who were eligible for ITG funding at the time of the acquisition will continue to receive PG’s annual Iowa Resident Institutional Grant in an amount that is equal to the 2017-18 ITG award, unless the ITG program is terminated by the State of Iowa. If that occurs, these students will no longer be eligible for the Iowa Resident Institutional Grant.

Q: Will students continue to receive funds from the All Iowa Opportunity Scholarship (AIOS) Program, the Iowa National Guard Educational Assistance Program (NGEAP), the GEAR UP Iowa Scholarship (GEAR UP) Program, and the Education & Training Voucher (ETV) Grant Program after Kaplan University becomes Purdue University Global?

A: Students who are eligible for funding from the AIOS Program, NGEAP, the GEAR UP Iowa Scholarship Program, and the ETV Grant Program will continue to receive funds from those programs until the acquisition of Kaplan University by Purdue is complete. After the acquisition, whether a student is eligible to continue to receive funds from these four Iowa grant and scholarship programs for attendance at Purdue University Global depends on the grant program:

  • The AIOS Program and NGEAP are funded by the state of Iowa. Therefore, these programs will no longer be available to students after Kaplan University is acquired by Purdue University. Purdue University Global will not replace funds that students would have been eligible to receive from the AIOS program or NGEAP with institutional grant funds following Kaplan’s acquisition by Purdue University. A student who is eligible for funds from either the AIOS program or NGEAP will lose funding from those two programs if the student is scheduled to receive a disbursement of funds from either program after the date that Kaplan University becomes Purdue University Global.
  • If you are a student who is eligible to receive funds from the GEAR UP Iowa Scholarship Program or the ETV Grant Program when Purdue University acquires Kaplan University, you may continue to receive funds for attendance at Purdue University Global from either of these programs, even after the acquisition. The GEAR UP Program and the ETV Grant Program are federally funded, so recipients of awards from these programs may use that funding for attendance at any eligible college or university, regardless of the state in which the college is based.

Q: What happens if a student receives the Purdue University Global Iowa Resident Institutional Grant amount but needs to withdraw for a period of time?

A: To maintain eligibility for PG’s Iowa Resident Institutional Grant, students must be continuously enrolled. If an Iowa Resident Institutional Grant recipient were to withdraw, the student would permanently lose eligibility for PG’s Iowa Resident Institutional Grant. If that student re-enrolls at Purdue University Global at some later date to complete his or her program, the student will not receive additional Iowa Resident Institutional Grant funding. However, a student who is on an approved institutional leave of absence or on an active duty military deployment will remain eligible for PG’s Iowa Resident Institutional Grant upon their re-enrollment at Purdue University Global, provided the student returns to the University in accordance with the terms of their approved leave of absence or military deployment.

Q: What actions do Kaplan University students need to take to ensure they receive PG’s Iowa Resident Institutional Grant funds that will be offered after the University’s transition to Purdue University Global?

A: Students do not need to take any actions to receive PG’s Iowa Resident Institutional Grant beyond ensuring they remain continuously enrolled and still meet the qualifications set forth by the Iowa Tuition Grant Program.

Q: Did Kaplan University do anything wrong that caused it to lose its eligibility to provide students with scholarships and grants funded by the state of Iowa?

A: No. 

Q: Does this change affect students’ eligibility for federal student aid?

A: No.

Read more about Purdue University’s acquisition of Kaplan University.

Printed from the Iowa College Student Aid Commission website on February 17, 2018 at 1:16pm.