Dec 10, 2007 3:19 pm US/Eastern
Harvard Increases Financial Aid For Middle Class
CAMBRIDGE (WBZ) ―
Harvard
University
has just announced they will introduce a major expansion of financial aid that will help reduce tuition bills for several students, including those whose families earn six figures.
The school plans to replace loans with grants and spend up to $22 million annually on aid that will target mostly middle and upper-middle class students.
According to the university, families who earn under $60,000 already pay nothing to go to the prestigious school.
Now, families earning $120,000 a year and below will be asked to pay up to 10 percent of their income. Families making between $120,000 and $180,000 will be required to pay 10 percent of their annual income.
This means that families who make $120,000 would be asked to pay $12,000 a year for their child to go to Harvard, compared with the more than $19,000 a year students pay under existing policies, the school said.
According to officials at Harvard, this financial change makes the school's price tag comparable to the cost of in-state tuitions at some of the country's leading public universities. "We want all students who might dream of a Harvard education to know that it is a realistic and affordable option," said Harvard Pres. Drew Faust.
School officials also said home equities will no longer be considered when Harvard determines a family's ability to pay for college. For some, this would cut the yearly cost of a Harvard education by an average of $4,000. "We want to make Harvard affordable for talented students from all financial backgrounds, and once they are here, we want to make sure they are able to take full advantage of the opportunities we provide to build their skills and knowledge and to engage their deepest interests. This experience is not possible if families are consumed with financial worry and students are consumed with debt," said Michael Smith, the Dean of the Faculty of Arts and Sciences.
According to the school, two-thirds of students attending the university currently receive some form of financial aid, and half receive need-based scholarship aid – totaling more than $98 million.
Harvard is considered the world's richest university, with an endowment of nearly $35 billion.
(© 2009 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)
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