Harvard provides big financial relief to students from families earning $200,000 or less

Harvard University has announced to expand its financial aid programme to offer free tuition to students that belong to families earning $200,000 (£154,000) or less per year.

The initiative, which will be launched from the 2025-26 academic year, aims to make a Harvard education more accessible to a broader range of students.

The Ivy League institution has one of the largest academic endowments in the world. It is valued at over $53 billion and has long provided financial aid to lower-income families.

Previously, only the families with annual income of under $85,000 were eligible for free tuition. Under the new policy, families with annual income of less than $100,000 will now be able to apply for additional support.

Besides tuition fee, the financial aid covers also expenses such as housing, meals, health insurance, and travel costs.

Highlighting the importance of the initiative, Harvard President Alan Garber said that the new measure would help "make a Harvard College education possible for every admitted student."

He noted that expanding financial aid would enrich the university’s diversity, ensuring students from different economic backgrounds could learn and grow together at the university.

“Harvard has long sought to open our doors to the most talented students, no matter their financial circumstances,” Hopi Hoekstra, Harvard’s dean of the faculty of arts and sciences, said in a statement. “This investment in financial aid aims to make a Harvard College education possible for every admitted student, so they can pursue their academic passions and positively impact our future.”

The cost of attending Harvard is substantial, with tuition fees for the 2024-25 academic year set at $56,550. However, additional costs, including accommodation and living expenses, push the total cost to over $80,000 per year.

The new policy is aimed at easing the financial burden on middle-income families.

In announcing the free tuition for deserving students, Harvard is not alone in expanding the financial aid. Other leading US institutions, such as the University of Pennsylvania and the Massachusetts Institute of Technology, have also introduced similar policies of free tuition for students hailing from families earning under $200,000.

The University of Texas and Dartmouth College have also increased aid support packages to take admissions from a wider range of students.

While the initiative has been widely praised, some critics argue that elite universities still cater largely to students from wealthier backgrounds.

Data from Harvard’s Opportunity Insights initiative shows that nearly 40% of Harvard students come from the top 5% of earners, whereas fewer than 5% come from the bottom 20%.