<p>My dad likes this, as we're middle-class and weren't expecting much financial aid. Yay, Harvard!</p>
<p>Note that $120k annual income places you at the 80th percentile whereas $180k places you at the 90th percentile. $60k places a family at the middle. Harvard, in effect, has just become a lot less expensive for 90% of American families.</p>
<p>It doesn't say how low your assets have to be. This might cause people to buy a bigger house to get rid of assets that might be counted.</p>
<p>yipeeeeeeeeeee!</p>
<p>This is really great news!</p>
<p>That's awesome!!! Now, if only I wanted to go to Harvard... why can't other colleges I actually want to go to follow suit?</p>
<p>I hope this puts some pressure on other well-off institutions... though with Harvard's traditionally high yield, other schools may figure they'll lose the matriculation battle anyway. It's bound to induce a few more applications to Harvard, which is hardly short of applicants as it is.</p>
<p>I wouldn't be surprised to see Harvard's yield jump 5-10% after they enact this policy.</p>
<p>"other schools may figure they'll lose the matriculation battle anyway."</p>
<p>This is true for pretty much everyone except Yale, MIT, Princeton and (maybe) Stanford.</p>
<p>Of course, other schools may say that they aren't following suit because they would rather see the funding used for more pressing issues. For example, how about spending the money on research that might solve cancer, AIDS or world poverty rather than spending millions of dollars so that families making $170,000 per year -- e.g., the top 0.1% of the world's population -- can afford to buy a new car while at the same time sending their child to college? Is this really the best use of Harvard's money? About half the world makes $1 per day or less; do any of the people here sitting on their $100K+/year salaries and complaining about tuition bills realize that while they are worrying about taking out one extra, easily-repayable $20K loan for their kid (or just saving money instead of dumping it out the window of their 3000SF house or rear end of their 20-gal SUV gas tank), most people out there right now are starving to find rat meat?</p>
<p>Also, how about those students from families making $45K per year or less? They are getting a "free ride" at all the elite schools now, but does that mean their families are doing well and that college isn't costing them anything? Couldn't those students be at home, working to help their parents afford to buy food? Maybe instead of paying for families making $180K per year, Harvard should give a "stipend" to the parent families who are barely scraping by?</p>
<p>I'm not saying I disagree with increased financial aid to the rich at the most elite universities, I just think that's how the other 3,000+ universities in the country might frame the discussion. And, as a result, that this might not necessarily be a good thing for Harvard. Already, the U.S. Government has been debating levying a tax on large, wealthy institutions like Harvard.</p>
<p>
[quote]
Also, how about those students from families making $45K per year or less? They are getting a "free ride" at all the elite schools now, but does that mean their families are doing well and that college isn't costing them anything? Couldn't those students be at home, working to help their parents afford to buy food? Maybe instead of paying for families making $180K per year, Harvard should give a "stipend" to the parent families who are barely scraping by?
[/quote]
</p>
<p>posterX, with college costs exceeding 50k/year, even those with incomes in the 150 - 200,000k range can use help. For example, families that make 150k and need to send three or four kids to college. If they all got into Ivys, the family would spend an entire year's income on college, just as someone making 50k/year would be paying their entire income to sustain one kid at an Ivy.</p>
<p>Man, this news almost makes me wish I hadn't applied ED to Penn. Almost. Good news for all of Harvards applicants though. Will be interesting to see how the other schools (YPS) respond.</p>
<p>"If they all got into Ivys, the family would spend an entire year's income on college, just as someone making 50k/year would be paying their entire income to sustain one kid at an Ivy."</p>
<p>It should be adjusted for the number of kids in college. But I don't see quite why someone making $180K/year and sending one kid to college should only have to pay $18K per year, when that difference in funding could be put to much better use solving poverty instead of allowing the family making $180K/year to just fill up their SUV's 20-gallon gas tank more often.</p>
<p>Maybe if they want to maximize their impact across all facets of society, colleges like Harvard, Yale and Princeton would emulate Yale Law School and tie future debt relief to occupational choices and income.</p>
<p>All students might begin with a package of grants and long-term loans covering 100% of tuition, room, board and miscellaneous living expenses (to encourage parents to invest a modest amount in their child's education, the package could be adjusted for very high-income families). Those in careers in public service, the arts, education or non-profits would get the most debt relief, gradually pro-rated for each year spent in the sector, those in the sciences or engineering receiving less, and those in finance, medicine, and law generally getting nothing.</p>
<p>BREAKING NEWS</p>
<p>Yale</a> Daily News - After Harvard aid move, Yale makes 'major' promises</p>
<p>xjayz - I'm not going to defend posterX, but he brings up some interesting points (I'd enjoy having him in my Justice section, for instance).</p>
<p>This new initiative undoubtedly benefits a large number of families, but we can't look at it in isolation –- we need to compare it to Harvard's other options for spending its endowment returns. </p>
<p>PosterX - Regarding the YLS idea, Summers funded grants specifically for graduate students at GSAS, KSG, and the like, who were going into public service. As far as I know, the program still exists. See Harvard</a> Gazette: Harvard expands financial aid for students choosing public service</p>
<p>great! know if i only had the grades..</p>
<p>Great news. But with the expected increase in apps, it will be an even <em>longer</em> shot to get in. :(</p>
<p>The announcement says that the family contribution is 10% of income for incomes between 120K and 180K. I have two questions,</p>
<ol>
<li>Does anyone know whether this is based on Adjusted Gross Income or actual income?</li>
<li>Is 10% of income your total bill or is it applied just to tuition without including room and board?</li>
</ol>
<p>Thanks.</p>
<p>I sure hope that Princeton follows their lead!!</p>
<p>Yea, does anyone now whether those figures are based on income before or after taxes?</p>
<p>Harvards Aid Bonanza</p>
<p>Harvard University on Monday unveiled a new approach to financial aid and a new definition of middle income. The result will be substantially more generous aid packages for Harvard students with families of incomes up to $180,000, who will be assured that family contributions to students costs will not exceed 10 percent of family income in a given year. Harvard is also eliminating all loans from aid packages and eliminating home equity in calculations of family wealth.</p>
<p>Read More: Jobs</a>, News and Views for All of Higher Education - Inside Higher Ed :: Harvard's Aid Bonanza</p>