Harvard Will Make Tuition Free for More Students

Harvard announced on Monday that it will provide free tuition to students from families earning $200,000 or less, making it the latest prestigious university to expand financial aid in response to the Supreme Court’s ruling banning racial preferences in college admissions.

This new income threshold will take effect this fall. Previously, only students from families earning below $85,000 qualified for free tuition at Harvard. For context, the median household income in the U.S. is approximately $80,000.

Beyond promoting diversity, this initiative could also help enhance Harvard’s reputation at a time when higher education is facing mounting criticism from the Trump administration and declining public confidence.

Other elite institutions have made similar moves. Last November, the University of Pennsylvania announced that it would cover tuition costs for students from families earning under $200,000. The Massachusetts Institute of Technology (MIT) and Caltech introduced similar policies, and schools such as Dartmouth, the University of Virginia, and the University of North Carolina have also increased their financial aid offerings over the past year.

The Supreme Court’s ruling on affirmative action has led to a decrease in Black and Hispanic student enrollment at several universities, including Harvard. Last fall, the percentage of Black first-year students at Harvard dropped from 18 percent to 14 percent, while Hispanic enrollment saw a slight increase.

This ruling has created a challenge for institutions that have long championed diversity but now face heightened scrutiny from the Trump administration, which has been pushing to dismantle diversity initiatives.

Richard Kahlenberg, director of the American Identity Project at the Progressive Policy Institute, noted that expanding financial aid is a logical strategy for universities seeking to attract more Black and Hispanic students, as socioeconomic status and race are often correlated.

“With racial preferences no longer an option, the most effective way for universities to maintain racial diversity is to increase opportunities for students from lower-income and working-class backgrounds, a significant portion of whom are Black and Hispanic,” Kahlenberg wrote in an email. “To encourage these students to apply and enroll, generous financial aid is essential.”

In announcing the new financial aid policy, Harvard President Alan M. Garber did not mention the Supreme Court ruling or the Trump administration’s recent efforts to cut funding for elite universities. However, he emphasized the importance of a diverse student body.

“Expanding access to Harvard enables students to engage with a broader range of backgrounds, experiences, and perspectives, fostering both intellectual and personal growth,” Garber said. “Bringing together individuals of exceptional potential to learn from one another is how we truly realize the university’s mission.”

For the current academic year, the total cost of attending Harvard, including tuition and housing, is nearly $83,000. Under the new policy, students from families earning less than $100,000 will have almost all expenses covered. This includes tuition, fees, housing, meals, travel, health insurance (if necessary), and even winter clothing for Cambridge’s harsh winters. Additionally, these students will receive a $2,000 start-up grant to help with initial expenses.

Harvard also stated that students from families earning up to $200,000 may qualify for additional financial aid based on individual circumstances, and even some families exceeding this income threshold could still receive some form of aid.

This year, Harvard allocated $275 million for financial aid, though the university has not yet provided an estimate of how much the new policy will cost. Over half of Harvard’s undergraduate students currently receive some form of financial assistance.

The decision to expand financial aid comes at a turbulent time for higher education. Just days before this announcement, Harvard revealed a hiring freeze in response to potential funding cuts and tax increases threatened by the White House.

Budget reductions in federally funded programs, particularly in international health and agriculture, have already led to significant layoffs at universities nationwide, including hundreds of job losses at Johns Hopkins University.

Additionally, wealthy universities remain wary of proposals from congressional Republicans to raise the endowment tax, which could impact their ability to fund financial aid. Currently, endowment investment earnings are taxed at 1.4 percent, but Vice President JD Vance has proposed increasing the rate to as much as 35 percent. (Ironically, Vance himself benefited from a generous financial aid package while attending Yale Law School.)

The Trump administration has also proposed capping overhead reimbursements for National Institutes of Health (NIH) grants at 15 percent, which could significantly reduce the funds universities rely on for research facilities and staffing. This proposal is currently being challenged in court.

Typically, overhead rates vary depending on the recipient, but in some cases, universities receive reimbursements of up to 60 percent of the grant amount. Cutting these funds would have a major impact on institutions that depend on federal grants to sustain their research and infrastructure.