Making college cheaper is on everyone’s mind. Even, it turns out, Princeton University.
After President Joe Biden announced he would Canceling student debt up to $20,000 In late August, the college tuition debate took on a new life. According to a statement As of Thursday, the Ivy League school in central New Jersey is now covering all college expenses for families earning less than $100,000 annually (It used to cover up to $65,000).
The change will go into effect in the fall of 2023, and the university estimates that more than 25% of undergrads are expected to receive aid that will cover the full cost of tuition and accommodation. Princeton says families with incomes above $100,000 may still be eligible for aid.
For this academic year, the estimated cost to attend Princeton is over $79,000. Details: $57,410 for tuition itself, $10,960 for room, $7,670 for board rate, and an additional $3,500 for other expenses (considered class fees, book costs, and personal expenses). Multiply that number by four — that’s more than $300,000 for a student over a four-year period, the average time it takes to earn a degree.
“One of Princeton’s defining values is our commitment to ensuring that talented students from all backgrounds can not only obtain a Princeton education but thrive on our campus. us and the world beyond,” the school’s principal, Christopher Eisgruber said in the announcement.
He added: “These improvements to our aid packages, made possible by the sustained generosity of our alumni and friends, will enhance the student experience during this time. their time at Princeton and their choices and impact after they graduate.”
In a chart in the announcement, the university visually analyzed families’ expected contributions each year along with their income. It shows families earning $75,000 and $100,000 with a total expected contribution of $0 and families earning $150,000 with a contribution amount of $12,500. Charts up to $300,000, where total contributions are expected to be $50,000 — much lower than the current cost of attending without any financial backing.
Of course, it will still be difficult to get in. Only 4% of the thousands of applicants to Princeton will be accepted in 2021. This is an Ivy League school with a prestigious reputation, but changes are being made to help a select few get accepted. select register.
However, an economist with expertise in higher education finance, Sandy Baum, says the change is limited in its impact.
“Does it change the world? No, “she told the Washington Post. “Will it make life better for the few lucky enough to get into Princeton? Sure.”
“I’m not really worried about these Princeton students,” she added, “I’m worried about all the people who don’t go to Princeton.”
Register Fortune feature email list so you don’t miss our biggest features, exclusive interviews and surveys.