WSJ: Harvard moves to cut prices among worries about affordability

<p>Princeton does not count home equity. They do ask if you own or rent.
They ask for other real estate equity, but not home equity.</p>

<p>I think I noticed that Hamilton doesn't count home equity. I've never seen a list of schools that don't, although I guess FAFSA only schools don't.</p>

<p>I would have happily given Yale 20% of our AGI. Unfortunately they wanted @ 40%. Those numbers in the Harvard press release don't mean diddly till they apply them to your specific situation. And yes, where you have your "assets" does seem to matter a little too much in FA. I can assure you my expected contribution wouldn't be 10% of AGI. ;)</p>

<p>But , and here's the really great news for the middle class - no self help (replaced with grant) means something to every family with any found need. That alone would have saved us $6-7K a year AND freed up the $3500 unsub Stafford. A $10K out of pocket swing. Big money.</p>

<p>Oh, well.</p>

<p>We seem to have been a bit early for that train (assuming Yale follows suit).</p>

<p>Am I correct in assuming if you do NOT make a pension contribution the income earned from your current pension plan is NOT considered untaxed income in the Princeton calculations? Is true for FAFSA?</p>

<p>I think Harvard says $3850 a year of self help. Just no loans.
Annual earnings in retirement accounts aren't counted anywhere, to the best of my knowledge.</p>

<p>TT. If you are pulling it out or putting it in, it's "income" for FA purposes. Somebody will count it somewhere as something. LOL. If it is just "earning" while in the plan, it's not included.</p>

<p>Thanks Cur. I recalculated and it did make a difference. Unfortunately, we assumed from the get-go D would be a full freight student so we saved and now have too much in cash and investments exclusive of pension to decrease our EFC. Oh, well.</p>

<p>I foolishly worked for myself since birth. There is more than one way to screw this up, isn't there? ;)</p>

<p>Save too much, save it in the wrong place, or have an asset called an "apple" when they say "oranges" are free. Oh, well. I can't complain. Well, I can and do. Just doesn't matter to the FA gods.</p>

<p>If this is really true, then this is a wonderful, and long overdue, move by Harvard. I did look at Harvard's press release on their website, though, and found one interesting thing:

[quote]
In the past decade, Harvard’s grant budget has increased 143 percent while inflation increased by only 28 percent.

[/quote]
</p>

<p>This statement is entirely true, and totally misleading, since H's financial aid rate is based on tuition, which has risen far faster than inflation! Probably 2-3X. So why did they compare to an irrelevant number?</p>

<p>This statement is entirely true, and totally misleading, since H's financial aid rate is based on tuition, which has risen far faster than inflation! Probably 2-3X. So why did they compare to an irrelevant number?</p>

<p>Very good question.</p>

<p>
[quote]
Currently, 763 families of Harvard undergraduates make between $120,000 and $180,000 dollars yearly, according to William R. Fitzsimmons '67, the College's dean of admissions and financial aid.

[/quote]

I find it strange only about 11% of the undergrad families fall into this range. Where are the rest?</p>

<p>
[quote]
I find it strange only about 11% of the undergrad families fall into this range.

[/quote]
</p>

<p>The plurality are above that range.</p>

<p>Add to this the 25% of freshmen and sophomores whose families make less than 60k and are getting a full ride.</p>

<p>If your AGI is 180, then your net is probably 110 or so. After taxes and such. Take out the family's living expenses, retirement savings, etc. and then you have very little left. I'd say 18k is about appropriate.</p>

<p>Based on this chart, about 16% of Harvard students come from family incomes below $60,000, and about 24% from families with incomes below $80,000.
Harvard has been making an honest effort for some time, IMO.</p>

<p>Harvard</a> College Financial Aid Office - Fact Sheet</p>

<p>I commend Harvard for doing this. Not impacted by it personally, but I think it's great.</p>

<p>I think H should just enact the 10% rule for all -- pay 10% of your income if your income is over $60k. So if you earn $75K, pay $7,500. If you earn $350K, then pay $35K. If you earn $1 million then pay $100K. And so on. I would feel at peace with such an approach.</p>

<p>The Yale Daily News reported late Monday:</p>

<p>
[quote]

[quote]
After Harvard aid move, Yale makes 'major' promises

[/quote]
</p>

<p>Updated Monday 11:15 p.m. Yale will make a “major announcement” regarding undergraduate financial aid at the start of the spring semester, University President Richard Levin told the News on Monday night.</p>

<p>His disclosure comes several hours after Harvard University unexpectedly unveiled a sweeping financial aid initiative that will reduce the expected financial contributions from middle- and upper-middle-income families and completely eliminate student loans.</p>

<p>The announcement swiftly and preemptively steals the spotlight from Yale, which has been criticized in recent years for playing catch-up in improving its financial aid offerings.</p>

<p>Financial aid was a major topic of discussion at this past weekend’s Yale Corporation meeting, Levin said, and the Corporation signed off on what Levin called a “major financial aid initiative.” Levin would not disclose any details of the planned reforms, only to say that it would be announced next month after all necessary details are worked out.

[/quote]
</p>

<p>Yale</a> Daily News - After Harvard aid move, Yale makes 'major' promises</p>

<p>I think it is absolutely wonderful that other colleges are already following suit. Harvard, Yale, Princeton, and other highly selective colleges are pouring massive amounts of resources into their respective programs to make college more affordable to all, and to counter the idea that Ivies are "only for rich prep school kids," which is still the prevailing idea in many areas of the country. Hopefully, there will be a noticeable effect!</p>

<p>This is long overdue! Too bad for some kids it is too late. Anyone think H was worried about the best and the brightest of the middle class going elsewhere.. ie flagship state u honors programs?</p>