Harvard's New Financial Aid Policy: Free Tuition for Families Under $200K Income

Starting with the 2025-2026 school year, Harvard University will waive tuition for students from families earning less than $100,000 annually and will not charge tuition for those with household incomes under $200,000, as announced by the institution on Monday.

Previously, households earning less than $85,000 annually were eligible for free tuition. This broadened financial aid initiative aims to make Harvard more accessible to middle-income families, the university stated. This change follows similar measures by other prestigious schools with substantial endowments, like the Massachusetts Institute of Technology, which expanded its financial aid package last November.

In a press release, Harvard emphasized that this new policy is integral to its “commitment to provide every admitted undergraduate student the resources they need to enroll and graduate.” In the upcoming academic year, Harvard plans to allocate $275 million to financial aid, a notable investment during a period when universities face austerity. This comes amidst cuts to research funding by the Trump administration and potential tax increases on university endowments by Republicans. Recently, Harvard, along with many other institutions, announced a hiring freeze and additional cost-reducing measures.

The expansion of financial aid seeks to close the affordability gap for middle-income families, a challenge noted by many higher education experts. While private college tuition is easily manageable for the wealthy, who can cover the costs, and many low-income students receive considerable financial assistance, the middle class often struggles to afford it.

Typically, only the wealthiest families pay full tuition, but those with incomes ranging from $150,000 to $200,000—and at the upper limit of middle income in the Boston area—usually contribute more than $30,000 annually. The cost can soar even higher, depending on the institution.

Harvard’s updated policy will grant free tuition to all admitted students from families earning up to $200,000. Additionally, these students can apply for further aid covering food and housing expenses. For families earning up to $100,000, the university will cover “all billed expenses,” including tuition costs. Students will also receive a $2,000 “start-up” grant during their freshman year, a $2,000 grant in their junior year, as well as health insurance and travel cost coverage.

For families earning more than $200,000 per year, financial aid evaluations will be conducted individually. Harvard’s endowment exceeds $50 billion.