Harvard Boosts Financial Aid
Harvard University announced Monday a major expansion of financial aid that will reduce tuition bills by thousands of dollars, even for families earning six figures.
The university said it would replace all loans with grants and spend up to $22 million more annually on aid, mostly targeting middle- and upper-middle-class students. Families earning under $60,000 already pay nothing to attend the world’s richest university, with an endowment of nearly $35 billion.
Now, however, parents earning between $60,000 and $120,000 will pay a percentage of their income, rising to 10 percent. Families with incomes between $120,000 and $180,000 will have to pay 10 percent of their incomes.
Harvard also said it would take home equity out of its wealth calculation in financial aid, which should provide a greater boost for students and parents. Overall, Harvard said a typical family earning $120,000 would pay about $12,000 next year, down from $19,000 under current award policies. For a typical family earning $180,000, the bill would drop to $18,000, from more than $30,000.
About half of Harvard’s students receive some form of aid, including students from about 100 families who earn more than $200,000.
For those who pay full tuition, room and board, the price is $45,620.
