Attend Harvard on a budget

A new financial aid program at Harvard University is going to make the school more affordable, even for families considered affluent. It is being reported that Harvard officials will spend $22 million more per year on financial aid that will mostly help middle-class and upper-middle-class students. (Families earning under $60,000 are already getting free tuition thanks to a $35 billion endowment.)

Under the new plan, grants will be replacing loans from the school. Families with incomes between $60,000 and $120,000 will pay only a set percentage of their income toward tuition, up to 10%. Families with incomes between $120,000 and $180,000 will pay 10% of their income toward tuition. Home equity will not be factored into the calculation.

Full tuition and expenses at Harvard currently total $45,620, and school officials feared that price tag was scaring off many potential applicants.