A $6.5 million gift left to Iowa State by an alumnus and his wife will be dedicated to funding low-interest loans for undergraduate students with financial need.

The Richard H. Beatty and Herta F. Beatty Loan Fund was endowed by Richard Beatty, who graduated from Iowa State in 1938.

Jason Menke, assistant director of communications for the ISU Foundation, said Beatty’s wishes, according to his will, were that the money be used to benefit students who may not be able to afford college on their own.

“He was very happy with his Iowa State experience and understood the value of an education,” he said. “He said he wanted to help people make something of themselves by going to college.”

Thomas Hill, vice president for student affairs, said the money will be loaned at a very low interest rate to students who have unmet financial need, such as those who receive Pell Grants that only cover part of their tuition.

Hill, who will be in charge of the loan distribution, said the university is looking into providing students who do well in school with even more help in paying the loans back.

“What we’re trying to do is put some incentives in this program to encourage students to perform well and to finish in four years, if possible,” he said.

Menke said the university heard about the gift in late October 2003, when the funds Beatty had set aside were ready to be donated. It was just now that all the paperwork was finished, he said.

“This was the gift that put the university’s ‘Investing in People’ initiative over its $50 million goal,” he said.

The “Investing in People” initiative was announced by ISU President Gregory Geoffroy at his installation Oct. 6, 2001. The initiative is an effort to raise more funds for student scholarships and faculty department chairman and chairwoman positions, fellowships and teaching initiatives.

“I am just ecstatic to have the opportunity to receive these funds because they are much needed,” Hill said. “We’re truly indebted to the Beattys.”

Hill said there will be people who will benefit from the Beattys’ generosity for years to come.

“It’s those type of Iowans that make Iowa State a great institution,” he said.

Menke said both the executor of Beatty’s estate and the Beatty family wish to have the public’s attention focused on the benefits students will receive from the gift.

“The gift speaks for itself and for the Beattys’ dedication to the university,” he said.

Richard Beatty died in February 1994.