Vox reported Wednesday that Stanford University has implemented a new program that will make it easier for low-, middle-, and upper-middle class families to afford college. Stanford will now offer free tuition for families earning less than $125,000 per year, and families that make less than $65,000 a year also won’t have to contribute to room and board.
“Students themselves will have to pay up to $5,000 each year from summer earnings, savings, and part-time work. There’s no rule that parents can’t cover their students’ required contribution.
Stanford is much more generous toward middle-class and upper-middle class students than the federal government is. Most students who get subsidized loans and federal Pell Grants come from families making less than $60,000 per year. But it also enrolls an outsize proportion of wealthy students. In 2010, the university’s director of financial aid said the median family income at Stanford was around $125,000.
On the other hand, only 14 percent of entering freshmen got federal Pell Grants in 2012, which typically go to students from families making less than $50,000 per year. Nationally, 41 percent of undergrads received Pell Grants.” – Vox, April 1, 2015