Harvard announces financial aid initiative

Harvard announces financial aid initiative
December 10, 07
By Linda K. Wertheimer, Boston Globe staff

Middle- and higher-income families, including those making $180,000, will get significantly more financial aid from Harvard University next school year under a new initiative unveiled today.

Harvard President Drew Faust's announcement puts more focus on financial aid for wealthier families after several years of efforts aimed at the students from the lowest family income levels. Faust's predecessor, Lawrence Summers, sparked many other schools to follow suit when he announced in 2004 that the university would foot the entire cost for families making under $40,000. In 2006, the university extended the same benefit to families making under $60,000.

Previously, families making $180,000 were expected to chip in $30,000 of the $45,620 annual tuition, room, and board. Under the new initiative, on average, they will chip in 10 percent of their income -- $18,000, and Harvard will pick up the rest.

Harvard, which now spends $98 million annually on undergraduate financial aid, will spend $22 million more on aid next year for the new effort, which will help new and existing students.

In addition to increasing aid for families in higher-income brackets, Harvard also will no longer expect students to take out loans as part of financial aid and will no longer consider a family's home ownership as a part of its ability to pay, officials said.

"What you see here is a real commitment to try to identify a response to an enormous stress a particular group of families feels about the cost of higher education," Faust said in a conference call with reporters announcing the initiative.

As the January deadline for applying to Harvard approaches, university officials said they hope the offer of more financial aid will bring in applicants who might have been turned off by the high cost.