Under the new proposal by the Iowa Board of Regents, the three public universities of the state will freeze the tuition for the next year.

The Regents called on the presidents of the three public universities-Iowa State University, University of Iowa, University of Northern Iowa-to cut tuition by $1,000-a-year in two years and freeze the tuition next year for Iowa residents.

The proposal is due to be discussed on the regents' October meeting. If approved, this move may mark the end of controversial tuition set-aside program.

Regent President Craig Lang who unveiled the plan Wednesday said the tuition freeze would send a message that Iowa is committed to its students. Lang asked university officials to take the cut in tuition revenue so that Iowa's in-state students can be helped, reports Daily Iowan.

With healthy enrolment rates and low inflation rates Lang is positive about the plan.

The three university presidents have reportedly approved the tuition freeze plan.

"I hope it sends a real positive message to families," said Sally Mason, University of Iowa President. "When the state continues to support the regent institutions, we can at least hold the tuition level."

As part of the proposal, the regents will ask the Legislature for a 2.6 percent increase in state funds, roughly on par with the current inflation rates. They will also request an additional $4 million for University of Northern Iowa which is in a sensitive state, struggling to maintain budget.

Regent Bruce Rastetter said for the universities to afford the tuition freeze, the Legislature needs to comply with the funding request.

"It's extremely important ... for the state to provide the support we're requesting. I know the university presidents took that into account when making this (proposal)," he said to Des Moines Register.

The proposal also includes a $39.5 million request to establish a new grant program for undergrad students with financial need, which may very well put an end to tuition set-aside program which earmarks 20 percent tuition paid by every student to scholarships for others.

The proposal if implemented will be beneficial to the undergrad students, while out-of-state and graduate students will continue to pay more in consistent with the rise in the tuitions by 3.75 per cent this year.