BREAKING NEWS: Massive financial aid reform at Yale announced

<p>Yale</a> To Increase Student Financial Aid -- Courant.com</p>

<p>Yale said it is increasing the number of families who qualify for aid, eliminating the need for students to take loans, enhancing its grants to families with more than one child attending college, exempting the first $200,000 of family assets from the assessment of need and increasing expense allowances for foreign students.</p>

<p>Families with incomes less than $120,000 will see their contributions cut by more than 50 percent, while most families with incomes between $120,000 and $200,000 will see cost reductions of 33 percent or more, Yale officials said. Families earning less than $60,000 will not make any contribution, while those earning between $60,000 and $120,000 will typically contribute 1 to 10 percent of family income and families earning more than $120,000 will contribute an average of 10 percent of income.</p>

<p>there was already a post on this i believe...that you posted...</p>

<p><a href="http://talk.collegeconfidential.com/yale-university/446797-breaking-news-yale-offer-massive-financial-aid-families-making-up-200-000-a.html%5B/url%5D"&gt;http://talk.collegeconfidential.com/yale-university/446797-breaking-news-yale-offer-massive-financial-aid-families-making-up-200-000-a.html&lt;/a&gt;&lt;/p>

<p>akybaky - this is the actual announcement of the policy. When posterX made the previous post, we did not yet know any specifics.</p>

<p>Anyway, it looks like a very significant improvement in FA, and should keep Yale's policies competitive with those of Harvard and Princeton.</p>

<p>Most people will see reductions in the cost of college of more than 50%. If your family makes $60K per year, you can now basically go to Yale for free. If your family makes about $100K, they will pay a tiny fraction of what they would pay to send you to most other Ivy League schools.</p>

<p>Preliminary Calculations here:</p>

<p>Yale</a> Cuts Costs for Families and Students</p>

<p>"Yale is reducing the average cost of sending a student to Yale College by over 50 percent"</p>

<p>Ah, but a big question remains unanswered: In assessing need, will Yale eliminate home equity from consideration?</p>

<p>ohh ok...sorry about that then</p>

<p>it will eliminate the first 200,000 USD of assets (including so home equity or a part of it)</p>

<p>Wow! Talk about amazing!</p>

<p>I am really excited that Yale will eventually have a calculator so families can get an estimate of their contributions. </p>

<p>Wow!</p>

<p>this is a dumb question, but is this for tuition and room and board or just tuition?</p>

<p>I'm surprised; it looks like they didn't quite match Harvard. Someone with a family income of $180,000 would pay $18,000 at Harvard compared to $23,000 at Yale.</p>

<p>The differences are nevertheless insignificant..</p>

<p>
[quote]
If your family makes $60K per year, you can now basically go to Yale for free.

[/quote]
</p>

<p>Free? Not by a wide margin when it comes to the percentage of income spent on education. The students will be expected to contribute a minimum of $4,350 and 25% of any savings.</p>

<p>poster!! thats incrwedible news!! as a HS teacher i barely earn 70,000 plus what i make in the summer plus coaching will still be less than 90,000!! Crossing fingers now for my son!!</p>

<p>xiggi, where do you see that? I'm confused.</p>

<p>Under a typical $60K income and $100K asset plan students students are only expected to pay $2500. If I remember correctly Yale's campus jobs are more than generous.</p>

<p>read the yale.edu announcement, it says everything! student contribution=2500USD</p>

<p>
[quote]
read the yale.edu announcement, it says everything! student contribution=2500USD

[/quote]
</p>

<p>Why don't you check the TOTAL of the various contributions by a STUDENT yesterday and what they might be from now on. Or better, ask a student on FA if he pays $4,400 or ... more.</p>

<p>There is indeed a figure of $4,400 dollars in self-help via a $2,500 work study job and a $1,900 loan? In the future the loan will be replaced by a grant. Hence, the self-help will be capped at $2,500 and converted to about 7 hours a week at around $11.30 per hour. </p>

<p>If you think that the summer earnings expectations of $1,850 and the 25% of savings will disappear, I wish you the best of luck on that one!**</p>

<p>
[quote]
Family Contribution
The family contribution has two components: (1) a parent contribution based on the parents' income and assets and (2) a student contribution, which consists of a contribution from a student's own assets, if appropriate, along with a student income contribution (from summer work).</p>

<p>Student Self-Help
Self-help is the first portion of every student's need-based financial aid award and consists of a term-time job and a student loan. Each student can customize the components of the self-help, depending on schedules and extra-curricular activities.</p>

<p>Student Effort
The student effort is the sum of the student income contribution (part of the family contribution) and the self-help. For 2007-2008, the student effort total is $6,250 for freshman ($4,400 self-help plus the $1,850 student income contribution).

[/quote]
</p>

<p>Edit: New information added on website:</p>

<p>Reduces Summer Earnings for Freshmen. Yale will reduce the student contribution for the summer prior to freshman year to $1,200 from $1,850.</p>

<p>From Yale</a> University SFAS: Financial Aid > Our Philosophy and Policies</p>

<p>Yale Financial Aid Initiatives</p>

<p>Beginning with the 2008-2009 academic year, Yale has announced a number of financial aid enhancements designed to make a Yale education more affordable to a broader range of students. You can read the press release here.</p>

<p>Extends the Zero Parent Contribution to Families Earning Less Than $60,000. In 2005, Yale exempted families earning less than $45,000 from contributing to their child’s education; it also significantly reduced the contribution from families earning less than $60,000. Yale will extend the zero contribution to families earning less than $60,000, with subsidies extending to families earning less than $120,000. </p>

<p>Eliminates Loans for Students in Yale College. No student will be required to take out loans to meet the cost of a Yale education. Yale will reduce self-help to $2,500 from $4,400 per year. If student is willing to work about 7 hours a week in an on-campus job (Yale’s hourly wage scale starts at $11.30 per hour), he or she can graduate with no debt. </p>

<p>Reduces the Assessment on Income and Assets. Generally, the expected parent contribution is established by combining the calculated contributions from income and assets and adjusting that contribution if the family has more than one child in college. Yale will lower the assessment on income and assets and provide an even split of the parental contribution between the siblings. </p>

<p>Income Currently, disposable income is the single most important factor in determining the parental contribution. Yale, like other schools, assumes that a portion of parents’ disposable income is available for their children’s educational expenses. Yale will reduce the assessment on parental income across the board. </p>

<p>Assets Yale and many other schools also take parents’ assets into account
when determining parental contribution. In calculating the parental contribution from assets allowances are made for college savings and emergency expenses. </p>

<p>Yale will change its treatment of assets in two ways. First, Yale will exclude the first $200,000 of all assets from the calculation of the parental contribution. Yale will also reduce the assessment on assets above the $200,000 allowance. </p>

<p>Siblings Currently, when two or more siblings are in college at the same time, Yale calculates the parental contribution and then assumes that 60% of the total is available to finance a Yale education, as recommended by the College
Scholarship Service of the College Board. Yale will now make an even split among the siblings for the parental contribution. For instance, if there are two siblings in school, the parental contribution to Yale will be 50%. For three siblings, the parental contribution will be 33%. </p>

<p>Reduces Summer Earnings for Freshmen. Yale will reduce the student contribution for the summer prior to freshman year to $1,200 from $1,850.
Increases Vacation Allowance for International Students. Currently, Yale provides international students an allowance of $400 per year. It covers additional expenses, such as food and lodging, which international students often incur during school breaks and short holidays. Yale will increase this allowance to $1,500. The University will also assist first year international students with the tax implications of their scholarships</p>

<p>New pages at Yale</a> University SFAS: Financial Aid > The Financial Aid Package</p>

<p>**Student Effort (Self-Help and Student Income Contribution)</p>

<p>Self-Help**
Self-help consists of a term time job that makes up the initial component of your financial aid award. For 2008–2009, the self-help level for all classes is $2,500. Self-help may be replaced by merit scholarships awarded by outside agencies.</p>

<p>Student Income Contribution
In addition to your self-help amount of $2,500, your student effort will also include a summer savings expectation. Your expected family contribution includes this contribution from your income. For 2008–2009, the minimum student contribution for freshmen is $1,200. For sophomores, juniors, and seniors, the 2008–09 amount is to be determined.</p>

<p>2008–2009 Minimum Student Contribution Amounts
Freshmen $1,200
Sophomores, Juniors, and Seniors To be determined</p>

<p>xiggi - what is your point? Is this package not generous enough? I know it is easy to misunderstand tone and nuance in a post, so I am not sure if you are just providing information or trying to denigrate what has been done. </p>

<p>I think the new packages by Harvard and Yale are incredibly generous. My husband and I have always worked as public servants so we are not wealthy. We feel we are very lucky that our daughter will be able to attend a school of this caliber for a very small amount of money. We are grateful for her good fortune.</p>

<p>I made my point in post number 12. After that, I provided the information to correct erroneous assumptions on the student contribution being only $2,500.</p>