<p>Email sent to undergrads today at 4:10</p>
<p>To all undergraduate students:</p>
<p>Please read the following announcement, which was made today regarding<br>
Cornell's financial aid initiative.</p>
<p>Best regards,</p>
<p>David Harris, Interim Provost<br>
Doris Davis, Associate Provost for Admissions and Enrollment</p>
<p>On the heels of an earlier initiative, announced just 10 months ago,<br>
in January 2008, that greatly reduced student loan burdens, Cornell<br>
University has announced, once again, that it will bolster its<br>
financial aid program for undergraduate students by eliminating<br>
parental contribution for family incomes below $60,000 and assets<br>
below $100,000 and further reducing student loans effective Fall 2009.<br>
Together with work-study and other grant programs already in place,<br>
Cornells neediest students will graduate debt-free.</p>
<p>In the current volatile and difficult economic circumstances, many<br>
current and prospective college students and their families are<br>
concerned about the affordability of a university education.<br>
Particularly at this unsettling time, Cornell University must open its<br>
doors even wider, said President David J. Skorton.</p>
<p>Our new policy will allow students, despite the current economic<br>
conditions, to be able to choose Cornell and to thrive here. With<br>
these enhancements, we will have the best chance each year to attract<br>
the strongest class, said Cornell Interim Provost David Harris.</p>
<p>The three components of the new financial aid initiative are:</p>
<p>1) Eliminate the parental contribution for students from families with<br>
incomes below $60,000 and assets below $100,000.</p>
<p>2) Cap need-based student loans at $7,500 annually for students who<br>
have financial need and whose families have annual incomes above<br>
$120,000.</p>
<p>3) Reduce the parental contribution for selected students who have<br>
financial need and whose families have annual incomes above $60,000.</p>
<p>Cornell already eliminates need-based student loans for family incomes<br>
below $60,000 (the income level will rise to $75,000 in Fall 2009),<br>
and annually caps need-based student loans at $3,000 for family<br>
incomes between $60,000 and $120,000.</p>
<p>The new initiative will allow many Cornell students to graduate debt-
free and relieve the least economically advantaged parents of having<br>
to make a contribution. This initiative provides generous benefits to<br>
students from low/middle income families, but also addresses the needs<br>
of all families who qualify for need-based financial aid.</p>
<p>Like many other universities, Cornell has had to respond to the<br>
current economic downturn, but the university has maintained its<br>
commitment to supporting a need-based financial aid program.</p>
<p>Ensuring that Cornell remains accessible to students from diverse<br>
economic backgrounds remains one of our top priorities, said Doris<br>
Davis, associate provost for admissions and enrollment.</p>
<p>When considering how to enhance financial aid, Cornell has a unique<br>
set of challenges, Harris said. Not only is Cornell larger than many<br>
of its peers, it is also more socio-economically diverse. In fall<br>
2007, Cornell had 1,863 undergraduates, or about 14 percent of its<br>
undergraduates, receiving federal Pell Grants, typically awarded to<br>
students whose family incomes are below $45,000. Harris pointed out<br>
that this is roughly the same number of Pell grant recipients as are<br>
enrolled at Yale, Princeton and Harvard combined.</p>
<p>Cornell plans to spend $138.9 million of its own resources on<br>
undergraduate financial aid in 2008-09, 97 percent of which will be<br>
spent on grant aid that does not have to be repaid to the university.</p>