Harvard changes financial aid to decrease economic disparity

Harvard University launched a new financial aid initiative over the weekend that will eliminate the cost of tuition for students whose families earn incomes of less than $40,000.

The initiative will also reduce the expected contributions for families with incomes between $40,000 and $60,000, from $3,500 to an average of $2,250.

The financial aid plan will go into effect this September and also addresses issues of recruiting and admissions. The plan hopes to fight the rising income inequality at Harvard.

"We want to send the strongest possible message that Harvard is open to talented students from all economic backgrounds," President Lawrence Summers said at a meeting of the American Council on Education in Miami Beach, Fla., according to a press release. "Too often, outstanding students from families of modest means do not believe that college is an option for them -- much less an Ivy League university. We are determined to change both the perception and the reality."

The new policy will affect around 1,000 students based on the current population, according to Harvard officials. The initiative will cost approximately $2 million next year and will be funded jointly by the president's central administrative budget and the Faculty of Arts and Sciences' budget. This will bring the total annual scholarship budget for undergraduates close to $80 million.

Harvard is also taking steps to expand its pool of applicants to include more students from low- to moderate-income backgrounds.

"It is certainly our hope that the message will reach students who wouldn't have thought about Harvard as an option," said Sally Donahue, director of financial aid at Harvard College. "As a result of the publicity, we have already received about 50 phone calls today from students wondering if they can still apply, so obviously we're thrilled."

"This initiative was a result of increased concern about growing issues of access for low-income students," Donahue said.

As a result of the publicity generated from the new financial aid policy, Harvard is hoping to see an increase in applicants from lower income brackets over the next few years.

In addition to financial aid, Harvard's Office of Undergraduate Admissions and Financial Aid has launched a plan using ZIP code information to better determine prospective students' socioeconomic information. Although the University still practices a need-blind admissions policy, ZIP code information will help identify applicants from impoverished areas to help represent a broader range of income diversity.

Students falling under the new financial aid policy will still be expected to contribute to their education through work-study positions.

"The new initiative doesn't change the student contribution," Donahue said. "It is aimed at the parent contribution because the student contribution has already been revised under two previous initiatives."

Harvard's new financial aid plan reflects a growing trend in universities across the country to close the gap in income inequality.

"Let us make sure that the American Dream is a possible dream for every child in the nation," Summers said.

Please note All comments are eligible for publication in The Daily Pennsylvanian.