Post-Secondary Education Subsidy: the Statute

Under Iowa law, children of parents who are divorced have the possibility of receiving post-secondary education subsidies from their parents. In layman's terms, the parents may be required to pay for college for their children. Because of the length of the statute, and the number of interesting cases, this topic will be broken into two blogs. Today, the statute; tomorrow, the cases. 

The statute in question is Iowa Code 598.21F. It allows for a post-secondary education subsidy (which will be abbreviated PSES) when good cause is shown. In determining whether the PSES is necessary, the Court will consider the age of the child, the child's ability regarding higher education, the child's financial resources, whether the child is self-sustaining, and the finances of each parent.

To determine the amount of the PSES, the Court engages in a multi-step analysis. First, the PSES is based upon the cost of a public, in-state, undergraduate degree, and includes only reasonable costs for necessary expenses. Having determined what this cost is, the Court then figures the amount the child is reasonably expected to contribute. This contribution can include financial resources such as financial aid, scholarships, grants, loans, and the ability to earn income while enrolled. This amount is deducted from the costs previously determined, to reveal the amount of unmet costs. The remaining amount is then apportioned between the parents. However, in no event will either parent's contribution exceed one-third of the total cost.

Once the Court has divvied up the college expenses, they have to be paid to someone. Unlike child support, the custodial parent is not the recipient of these funds. They are either paid to the child or to the college. 

The child also has some things to do if he or she is going to get the PSES. First, if the child repudiates the parent by publicly disowning, refusing to acknowledge, or similar actions, he or she will not be entitled to the PSES. Second, if the child receives the PSES, the child must forward his or her grades to the paying parent within 10 days of receipt. Finally, if the child's grades are below the median grade point average for his or her college each semester, the PSES will ended after the first calendar year of instruction.

Of course, there are many interesting cases discussing the ins and outs of all of these rules. Those will be explored in our next installment!