Harvard expands financial aid to cover tuition for families earning up to $200,000

Harvard estimates that under the new system, 86% of US families could qualify for financial assistance. (Courtesy: Reuters file photo)

Harvard University has announced a significant expansion of its financial aid programme, making undergraduate tuition free for families earning up to $200,000 annually and covering full tuition, housing, and food for those earning up to $100,000. The move is part of a broader effort by elite universities to increase access for middle-income families while responding to reputational and political challenges.

Increasing accessibility to elite education

Harvard estimates that under the new system, 86% of US families could qualify for financial assistance. Families earning over $200,000 may also be eligible for aid, depending on factors such as the number of children in college and outstanding debts.

Selective universities have increasingly been offering more generous aid packages to attract middle-income students and diversify their student bodies. Institutions such as Stanford, Princeton, and the University of Texas system have implemented similar initiatives, covering tuition for families earning six-figure salaries. Last year, MIT and the University of Pennsylvania also raised their tuition-free income thresholds to $200,000.

Addressing financial and reputational challenges

Harvard’s announcement comes at a time when elite universities are facing heightened scrutiny over their handling of student protests regarding the Israel-Hamas war. Alumni backlash and concerns over campus culture have led to some donors withholding financial contributions and families reconsidering Ivy League institutions for their children. Despite this, demand for admission remains strong, with Harvard admitting fewer than 4% of applicants in the last admissions cycle.

“Making institutions like Harvard more financially accessible will open up the socioeconomic ladder to many families, giving them opportunities and networks they previously lacked,” said Adam Nguyen, founder of Ivy Link, a college-admissions consulting firm. While Ivy League schools provide a world-class education, Nguyen noted that recent controversies have affected their standing among employers and alumni.

Expanding benefits for students

Under the new financial aid plan, incoming and current students from families earning $100,000 or less will have all expenses—including tuition, room, board, travel, and winter clothing—fully covered, up from the previous threshold of $85,000. Families earning up to $200,000 will receive tuition coverage and may also qualify for assistance with living expenses. Even those earning above that amount could receive aid depending on their financial situation.

“A family of two doctors earning $400,000, but still paying off substantial medical school debt and unable to buy a home or save adequately for college, might qualify for aid,” said Jake Kaufmann, Harvard’s director of financial aid. “Similarly, a family of eight living in a high-cost city like New York will be assessed differently than a single-child household in a lower-cost region.”

Harvard’s goal is to ensure that affordability is not a barrier for admitted students when deciding whether to enrol.

The rising cost of college and student debt

Without financial aid, tuition at Harvard currently costs $56,550 per year, with total expenses—including room and board—reaching nearly $83,000.

Student loan debt remains a significant burden for American graduates, with outstanding student loans in the US now totalling approximately $1.78 trillion, according to the Federal Reserve. At the same time, colleges and universities have been increasing grants and financial aid in response to growing concerns over student debt and accessibility.