Stanford University
Stanford Report, March 15, 2006
Families earning less than $45,000 need not make tuition contribution
Families with annual incomes of less than $45,000 will not be expected to
contribute to the cost of tuition at Stanford University, and the
requirements for middle-income families will be cut in half, Richard Shaw,
dean of undergraduate admission and financial aid, announced today.
The change applies to both new and continuing undergraduate students and
will go into effect with the new academic year in September. The program is
anticipated to cost the university $3 million in the first year.
"When Jane and Leland Stanford created the university, they wanted students
admitted based on their abilities, promise and willingness to work hard and
not on whether or not they could pay the cost of tuition," Shaw said. "With
this new program, we are telling talented students from families with low to
moderate incomes that they should apply with confidence. If they are
admitted, we’ll cover their costs."
The implementation of the policies follows a decision made last spring by
President John Hennessy that the university would work toward eliminating
financial contributions for families with incomes below $45,000.
"From its earliest days, Stanford has had equal commitments to excellence
and ensuring access to students from the widest variety of backgrounds and
circumstances," Hennessy said. "Having a student body from diverse economic
backgrounds benefits not just the students who receive financial aid, but
also the entire student body-enhancing their academic experience and
broadening their worldview."
During the current academic year, parents of enrolled students with incomes
below $45,000 contributed an average $2,650 toward educational costs. Under
the new program, that contribution will be eliminated. Parents with incomes
between $45,000 and $60,000 will see their expected contribution reduced to
an average of $3,800. The changes will affect more than 1,100 students.
The university already has committed $66 million of its own funds for next
year’s financial aid program. This year, the total aid provided to
undergraduates from the university and other sources surpassed $112 million.
About 76 percent of Stanford undergraduates receive some form of internal or
external financial aid.
The change improves Stanford’s already generous financial aid program.
Stanford is one of the few universities in the nation that is "need blind,"
meaning that U.S. citizens and permanent residents are admitted without
regard to their ability to pay. The university then meets the full need of
all students who qualify for aid.
In the coming year, Stanford’s undergraduate tuition will be $32,994, and
total costs including room, board, books, transportation and personal
expenses will average $47,000. The average financial aid package will
include $28,700 in scholarships and grants. In addition to an expectation of
support from parents based on their ability to pay, students are expected to
contribute summer earnings, work during the academic year and take advantage
of student loans.
"Students from low-income backgrounds are underrepresented at our nation’s
most selective institutions," Shaw said. "Stanford has historically had a
strong financial aid program for low-income students. But many families may
not know that or may be discouraged by the stated tuition. So we want to be
more forceful with this new program in encouraging talented low-income
students to consider Stanford."
Harvard Ups Financial Aid
Harvard eliminates financial contribution for families earning under $60,000
Published On 4/3/2006 2:05:53 AM
Crimson Staff Writer
Families earning less than $60,000 a year will no longer be expected to pay
for their children to attend Harvard, school officials announced this past
Thursday.
The newly expanded financial aid program, which will also reduce the
contributions of families with annual incomes between $60,000 and $80,000,
is expected to cover more than 1,500 students-nearly a quarter of the
College-in the next academic year, Dean of Admissions and Financial Aid
William R. Fitzsimmons ’67 and Director of Financial Aid Sally C. Donahue
said in a joint interview Thursday evening.
With the announcement, Harvard jumps to the head of a pack of top
universities that are expanding financial aid for undergraduates from
low-income and middle-class families.
In 2004, University officials unveiled the Harvard Financial Aid Initiative
(HFAI) and pledged that families earning less than $40,000 a year would no
longer have to contribute to the cost of their children’s tuition, room, and
board. In addition, parents with annual incomes between $40,000 and $60,000
would see substantial cuts in their contributions to tuition. But
undergraduates still had to foot a fraction of their tuition costs through
paid work or student loans.
The school’s policy on student contributions is now set to change.
Under Harvard’s old guidelines, students on financial aid had to fulfill a
"self-help" obligation-"the amount of money that the financial aid office
believes you should be able to contribute during the term," according to an
HFAI guidebook. That typically amounted to $3,650 and could be covered
through paid work or student loans, according to a fact sheet from the
Financial Aid Office.
The old guidelines also required students to make another contribution that
was "expected to be earned during the summer," according to the HFAI
guidebook. Under the old guidelines, outside scholarships could serve to
offset the self-help expectation but could not be used to replace summer
income.
The plan unveiled yesterday will allow students to use outside scholarships
"to eliminate their summer savings obligations," according to a statement
from the University.
The self-help expectation rises by $100, to $3,750, under the new
guidelines, and the summer-savings obligation now stands at $1,500 for
freshmen and averages around $2,100 for upperclassmen, Fitzsimmons and
Donahue said. They noted that while the two requirements increased slightly,
both were roughly in line with inflation over the past two years.
Yesterday’s move could allow some low-income students with large
scholarships to completely pay their tuition obligations without taking
term-time or summer jobs.
Dr. Terri and TJH Consulting 