Harvard to boost aid, even to those of higher incomes (earning $120,000 to $180,000 a year)

[Breeze54]

Harvard to boost aid, even to those of higher incomes

http://www.boston.com/news/education/higher/articles/2007/12/11/harvard_to_boost_aid_even_to_those_of_higher_incomes/

Aims to simplify process

By Linda K. Wertheimer
Globe Staff / December 11, 2007

Harvard University announced yesterday it would sharply increase assistance for middle- and higher-income families, using an uncommonly simple formula designed to strip away confusion about financial aid and reduce the sticker shock over tuition.

Beginning next fall, families earning $120,000 to $180,000 a year will be required to pay, on average, no more than 10 percent of their income. Harvard will also eliminate loans in financial aid packages, replace them with grants, and remove home equity in determining a family's assets.

The changes propel a trend among some elite colleges, including Princeton University, Williams, and Amherst, to make college less expensive for middle- and higher-income families. Princeton, which does not have a set formula like Harvard's, said families who make $120,000 to $180,000 contribute 16 percent of their income, on average, toward the university's cost.

Three years ago, Harvard became one of the first major universities to waive all costs for families earning $40,000 or less, a benefit extended in 2006 to those making as much as $60,000. Under the new standard, the family contribution will decline steadily from 10 percent of income to zero.


More....

[FrenchieCat]

1. My daughter attends Harvard.......and so this is good news to us....

We have had to accumulate a few loans thus far, and this sounds like that will be the end of that!

This is great! :applause:

[Breeze54]

3. That must be a relief! - good for you!

Looks like there is a real savings here too!

Almost cuts the tuition in half!

[JDPriestly]

2. All schools should follow suit if they can afford it.

[Breeze54]

4. I agree and they may have to do it anyway...

with the way the economy and the housing problems are going.

http://www.boston.com/news/education/higher/articles/2007/12/11/harvard_to_boost_aid_even_to_those_of_higher_incomes/
Harvard is reducing the amount that middle- and higher-income families have to contribute by one-third to one-half. For example, a family making $180,000 now pays an average of $30,000 toward Harvard's annual cost; under the new initiative, the family would pay just $18,000. A family making $120,000 now contributes $19,000 on average, and will see its share drop to $12,000.

Harvard has no income cutoff for aid recipients and bases decisions on numerous elements, including the number of children in college and other debt. At Harvard, 100 families who earn more than $200,000 qualify for some aid because of special circumstances.

Continued...

[T Wolf]

5. Too late for my daughter (senior) at NYU. She got a measly $7,500 in aid per year

so the rest is coming from our retirement. I'll be working 'til death.

My wife and I together make significantly less than the $120k in the example, but have to pay over $40k per year.

Still, it has been worth it.

[Breeze54]

6. Why isn't she working to help pay for it? Why only you?

:shrug:

Everyone in my family worked while going to college to help pay or pay it all by themselves

I'll bet you're glad she's in her last year! Congrats to you!! ;)