<p>
[quote]
An income of $181K, after all, is not that of a hedge fund tycoon.
[/quote]
</p>
<p>It is however, an income sufficient with reasonable spending patterns to pay full list price for one child at any university I have heard of. Maybe not of savings, and maybe not even out of current income, but with a reasonable amount of time shifting (a.k.a. getting a loan) that should be possible at that level of income.</p>
<p>"Don't worry, they'll probably just raise tuition, room and board at HLS, HBS and KSG to make up for it."</p>
<p>You do know that the professional schools have their own, separate endowment funds and budgets?</p>
<p>""That boost should allow Harvard to . . . raise the academic profile of its entering classes. " Gosh, I didn't know that was a problem!"</p>
<p>They're not waiting until there's a problem. They have one of the most aggressive global recruitment programs of any university. They would get many good applicants if they did no marketing at all, but they are competing against a group of strong peer universities, and so they will work to get better and better at attracting the best applicants as long as there is room for improvement.</p>
<p>I'm also wondering what happens at just over the threshhold of $180k. Is there a cliff, where family contribution zooms up from $18k to $30k or more? It would make far more sense if there were a rolloff, with the percentage of family income ramped up over some range until you got to full freight equalling some percentage (20?) of AGI.</p>
<p>I can imagine this leading to all kinds of interesting income strategies for families just over the threshhold in high tax situations (high income, high state tax, and alternative minimum tax). A two-income family earning, say, $200k a year: cut the paycheck by $30k, resulting in a take-home cut of $15-20k. Meanwhile, you save at least $13k on tuition (assuming you were going to be paying $30k, if not more). There's got to be a sweet spot in there for someone.</p>
<p>"Finally, I predict another sharp tuition rise for those above the 180K threshold...'</p>
<p>OK, now that's scary, since the top schools all manage to charge about the same amount. If Harvard jacks up its tuition by 7 or 8 or 10 percent a year, will the others follow? That will make it tougher on everyone else except the 6800 who attend Harvard.</p>
<p>I continue to think this is a good move for Harvard, and for any other wealthy college who can follow suit. But for the vast majority of kids, I'm not so sure. Some colleges will respond by funneling more money to merit aid -- which is good for the stars, not so good for everyone else, who will get gapped.</p>
<p>I wonder what happens to those that make over $180,000 too. If somebody makes $180,000 they pay $18,000 and if somebody makes $181,000 they pay $45,000? I am sure this is not true, and the way it makes sense to me is you pay $18,000 plus a percentage of your income above $180,000.</p>
<p>For example if the percentage is 20% for income above $180,000, with an income of $181,000, you would pay $18,200 to Harvard. (Twenty percent of $1,000 is $200).</p>
<p>I hope I am clear and I hope Harvard explains more.
I am happy to see Harvard do this.</p>
<p>I think people making $200,000 a year will definitely be able to figure out how to make their income $179,999 for financial aid purposes...deferred income plans or whatever or what SlithyTove says; just ask to be paid less in taxable dollars and save $30,000 on tuition.</p>
<p>
</p>
<p>This is correct. I'm not sure if I've posted this link in this thread, but maybe I should. </p>
<p>Online</a> Extra: How Harvard Gets its Best and Brightest</p>
<p>New data from NACUBO won't be out until January, but in light of Harvard's financial aid move, it might be useful to review their financial strength and how this compares to other institutions and how much more financial flexibility Harvard has to take this kind of action. </p>
<p>The data below is for national universities only and is the most recently released from NACUBO. But it is only through 6/30/06 so undoubtedly the numbers are higher now for virtually all institutions. But the difference between Harvard, Princeton, Yale and Stanford with everyone else is pretty striking. I would guess that the spread shown below has only increased over the past year. How many other colleges will really have the financial wherewithal to match Harvard's offer? Probably many on this list, but this is but a small number of colleges nationally. </p>
<pre><code>Per Capita (including undergraduate and graduate students) , School
</code></pre>
<p>1 $ 1,881,024 , Princeton
2 $ 1,728,891 , Harvard
3 $ 1,570,199 , Yale
4 $ 1,243,680 , Stanford
5 $ 819,916 , MIT
6 $ 801,980 , Rice
7 $ 728,200 , California Inst. Of Technology
8 $ 537,476 , Dartmouth
9 $ 457,382 , Univ of Chicago
10 $ 403,403 , Notre Dame
11 $ 394,717 , Emory
12 $ 387,136 , Washington Univ St Louis
13 $ 385,079 , Duke
14 $ 302,322 , Northwestern
15 $ 266,663 , Brown
16 $ 262,716 , Univ of Texas System
17 $ 253,846 , Vanderbilt
18 $ 243,184 , Columbia
19 $ 224,151 , Univ of Pennsylvania
20 $ 220,032 , Cornell
21 $ 166,656 , Case Western
22 $ 157,439 , Wake Forest
23 $ 150,331 , Univ of Virginia
24 $ 141,331 , Univ of Michigan
25 $ 137,615 , Tufts
26 $ 136,989 , Lehigh
27 $ 119,279 , Johns Hopkins
28 $ 100,681 , Boston College
29 $ 97,783 , Brandeis
30 $ 92,907 , Univ of Southern California</p>
<p>Here is some recent data (academic year 2006-07) on the tuition and fees cost for many top national universities. Nearly all of the privates have a cost not greatly dissimilar to Harvard (Rice is a big exception). The publics are clearly cheaper for IS and, depending on the state, a little to a lot cheaper for OOS. </p>
<p>IS OOS<br>
Cost , Cost , School</p>
<p>$35,702 , $35,702 , Brandeis
$36,342 , $36,342 , Brown
$32,835 , $32,835 , Cal Tech
$34,578 , $34,578 , Carnegie Mellon
$33,908 , $33,908 , Case Western
$35,166 , $35,166 , Columbia
$34,781 , $34,781 , Cornell
$35,288 , $35,288 , Dartmouth
$33,963 , $33,963 , Duke
$32,506 , $32,506 , Emory
$35,964 , $35,964 , Georgetown
$4,926 , $20,272 , Georgia Tech
$34,998 , $34,998 , Harvard
$36,400 , $36,400 , J Hopkins
$35,610 , $35,610 , Lehigh
$34,986 , $34,986 , MIT
$35,429 , $35,429 , Northwestern
$35,187 , $35,187 , Notre Dame
$33,420 , $33,420 , NYU
$12,164 , $22,712 , Penn State
$33,000 , $33,000 , Princeton
$35,878 , $35,878 , Rensselaer
$26,974 , $26,974 , Rice
$34,800 , $34,800 , Stanford
$36,700 , $36,700 , Tufts
$36,610 , $36,610 , Tulane
$35,868 , $35,868 , U Chicago
$3,206 , $17,791 , U Florida
$9,882 , $23,968 , U Illinois UC
$9,723 , $29,131 , U Michigan
$5,034 , $19,682 , U North Carolina
$35,916 , $35,916 , U Penn
$35,190 , $35,190 , U Rochester
$7,630 , $20,364 , U Texas
$8,500 , $27,515 , U Virginia
$5,985 , $21,283 , U Washington
$6,726 , $20,726 , U Wisconsin
$6,654 , $25,338 , UC Berkeley
$8,109 , $27,177 , UC Davis
$6,794 , $25,478 , UC Irvine
$7,010 , $25,694 , UC S Barbara
$6,522 , $25,206 , UCLA
$6,888 , $25,372 , UCSD
$35,810 , $35,810 , USC
$33,440 , $33,440 , Vanderbilt
$9,210 , $26,725 , W & M
$34,330 , $34,330 , Wake Forest
$35,524 , $35,524 , Wash U StL
$34,530 , $34,530 , Yale
$30,560 , $30,560 , Yeshiva</p>
<p>Nice data as always hawkette;
Looks like others non HYPSM Ivy will have difficulty following, if they decide to of course.</p>
<p>Both schools that my kids attend are to be commended: Harvard, for its new initiative and Vassar for announcing that they are now need-blind. How interesting that they both have new presidents this year who had major roles in initiating these changes. Kudos to both schools!</p>
<p>Does Harvard have a revised aid calculator yet?</p>