<p>Is there any possibility Princeton will change its financial aid program/policies this year to compete with Harvard's new initiative aimed at middle-income students/families? Does anyone on campus know if action in the short-term future is being seriously considered? We aren't hearing anything out here in the sticks.</p>
<p>princeton actually enacted two of the planks in harvard's platform (replacement of loans with grants, no consideration of home equity) back in 2001. it remains to be seen whether it will enact the third, the reduction in contribution for "middle" income families, but it is widely expected. for me, the interesting question is the timing, as princeton apears content to let yale show its card first this time. bears watching.</p>
<p>Yes, December's news should be characterized as Harvard changing its policy to compete with Princeton. I'm happy to see several great colleges exhibiting their friendly rivalry in this manner.</p>
<p>To an extent, more important than policy is the actual amount of aid given. Even if two colleges have the same "policy", it doesn't mean that any particular prospective student would be paying the same amount. A better measure than policy might be a figure on gross aid spending per student (not "average" grant, because that can easily be manipulated). Princeton can probably up its amount of aid per student without necessarily changing any policy items. </p>
<p>Harvard announced it would spend an extra $22 million on financial aid next year for 6,500 students, covering families with incomes of up to $180K, while Yale has announced (on Bloomberg TV today) that it would spend an extra $22 million next year for 5,300 students, covering families with incomes of up to $200K. To match Harvard and Yale, Princeton will also need to significantly increase its aid budget. Besides HY, Princeton is pretty much the only college out there that will be able to match this increase, and I'm sure it will.</p>