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University considers changes to current financial aid policy
After Harvard University announced plans to reduce costs for upper-middle class families, schools are
by Matthew Brock
News | 1/22/08
Posted online at 4:17 AM EST on 1/22/08
/ Last updated at 7:02 PM EST on 1/22/08
The University will look into reforming its current financial aid policy following Harvard University's announcement last month that it will substantially increase financial aid to upper-middle class families, administrators said.
Harvard's new plan will allow those with incomes between $120,000 and $180,000 to pay no more than $18,000, or 10 percent of their annual income, an immense discount compared to the full Harvard tuition of $45,000, The New York Times reported.
Although Brandeis cannot afford to give aid on the same scale as Harvard because it has a much smaller endowment, Peter Giumette, dean of student financial services, said that any possible changes regarding how aid is allocated are still being researched. At present, Brandeis' $500 million endowment is worth about one-seventieth of Harvard's $35 billion.
The University's current financial aid system allotted nearly $40 million to just under 60 percent of students at Brandeis this year, Giumette said.
Harvard's new financial aid plan offers free tuition to families with incomes under $60,000, as opposed to its old plan, which set the cutoff at $40,000. According to the Harvard Gazette article, families with incomes between $60,000 and $120,000 will also see an increase in financial aid. Harvard is also making the move away from loans and will begin to give students grants to pay for their tuition.
According to The Times, many universities are following in Harvard's footsteps, such as the University of Pennsylvania, Swarth- more College and Haverford College. However, due to the financial implications, many schools are having trouble keeping up.
Jean Eddy, senior vice president for students and enrollment, asked the Department of Student Financial Services to come up with several scenarios for financial aid changes and to find out how much it would cost to do something "a little bit less" than Harvard's reforms, Giumette said. The final decision will have to be approved on the board level and will definitely cost the University more than its current plan does.
Harvard's new plan will allow those with incomes between $120,000 and $180,000 to pay no more than $18,000, or 10 percent of their annual income, an immense discount compared to the full Harvard tuition of $45,000, The New York Times reported.
Although Brandeis cannot afford to give aid on the same scale as Harvard because it has a much smaller endowment, Peter Giumette, dean of student financial services, said that any possible changes regarding how aid is allocated are still being researched. At present, Brandeis' $500 million endowment is worth about one-seventieth of Harvard's $35 billion.
The University's current financial aid system allotted nearly $40 million to just under 60 percent of students at Brandeis this year, Giumette said.
Harvard's new financial aid plan offers free tuition to families with incomes under $60,000, as opposed to its old plan, which set the cutoff at $40,000. According to the Harvard Gazette article, families with incomes between $60,000 and $120,000 will also see an increase in financial aid. Harvard is also making the move away from loans and will begin to give students grants to pay for their tuition.
According to The Times, many universities are following in Harvard's footsteps, such as the University of Pennsylvania, Swarth- more College and Haverford College. However, due to the financial implications, many schools are having trouble keeping up.
Jean Eddy, senior vice president for students and enrollment, asked the Department of Student Financial Services to come up with several scenarios for financial aid changes and to find out how much it would cost to do something "a little bit less" than Harvard's reforms, Giumette said. The final decision will have to be approved on the board level and will definitely cost the University more than its current plan does.
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