Princeton to cover all student costs for most families earning up to $100,000
The Princeton University campus as seen on Feb. 4, 2020, in Princeton, N.J. Photo: William Thomas Cain via Getty Images
Princeton University announced Thursday an expansion of its financial aid program that will allow most students from families earning up to $100,000 to pay nothing to attend the Ivy League college.
Why it matters: Costs for higher education have risen dramatically in the past decade, a concern critics say won't be solved by President Biden's student loan forgiveness plan. American universities and colleges have faced mounting pressure to lower tuition rates, especially amid the pandemic.
Details: Tuition, room and board will be covered for most families who have an annual income less than $100,000 — up from the previous $65,000 threshold, according to Princeton.
- The move is expected to benefit roughly 1,500 students — over 25% of the undergraduate student body.
- Many families with income above $100,000 will benefit from additional aid, including those with multiple children in higher education, the college said.
- A majority of additional scholarship funding will go to students from families that earn less than $150,000.
Worth noting: The total cost to attend Princeton for one year — including tuition, meals, housing and other miscellaneous expenses — is around $80,000.
- Without financial aid, families have to pay roughly $320,000 for four years of education.
- The university's endowment topped $37 billion last year.
What they're saying: "One of Princeton’s defining values is our commitment to ensure that talented students from all backgrounds can not only afford a Princeton education but can flourish on our campus and in the world beyond it," Princeton President Christopher L. Eisgruber said in a statement.
- "These improvements to our aid packages ... will enhance the experiences of students during their time at Princeton and their choices and impact after they graduate."
Yes, but: Sandy Baum, an economist at the Urban Institute, told the Washington Post the new effort won't "change the world" in the grand scheme of soaring college costs.