The University of Iowa faces a lawsuit after thousands of students found out they no longer had scholarships. The class action lawsuit led by freshman Benjamin Muller was filed Monday in Polk County. The lawsuit claims officials had no right to take away the scholarships for more than 2,400 students. President Bruce Harreld said last week state budget cuts worth $8 million dollars were the reason the school chose to cut some non-merit and non-need-based scholarships.