Harvard’s Free Tuition Initiative (Continued)

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Cost of Living · Public Finance · United States · economy

The program categorizes aid eligibility into three tiers based on family income and assets:

1. Full Coverage Tier ($0–$100,000 Family Income)

• Eligibility: Families with annual incomes ≤$100,000 and typical assets (excluding home equity and retirement funds).

• Coverage:

• Full billed expenses: Tuition ($56,550), fees ($5,126), housing ($12,922), meals ($8,268), health insurance, and travel costs.

• Additional support:

• A $2,000 start-up grant in the first year for initial expenses (e.g., winter gear, laptops).

• A $2,000 launch grant during junior year to support post-graduation transitions.

• Student contribution: $3,500 annually for personal expenses, typically covered through work-study.

2. Free Tuition Plus Tier ($100,001–$200,000 Family Income)

• Eligibility: Families with annual incomes ≤$200,000 and typical assets.

• Coverage:

• Full tuition waiver ($56,550).

• Tailored aid for housing, meals, and fees based on individual financial circumstances.

• Example: A family earning $150,000 might pay 5–7% of their income toward non-tuition costs.

3. Tailored Aid Tier (>$200,000 Family Income)

• Eligibility: Families earning >$200,000 with atypical assets (e.g., multiple properties, high medical expenses).

• Coverage:

• Custom financial aid packages determined through individualized assessments.

• Aid may cover partial tuition or other costs depending on factors like siblings in college or regional cost-of-living disparities.

Asset Considerations

• Excluded assets: Primary home equity and retirement accounts are not counted in financial need calculations.

• Impact: This benefits families with limited liquid assets but significant home equity, particularly in high-cost regions like California or New York.

Geographic and Demographic Adjustments

• Cost-of-living allowances: Families in high-expense regions receive adjusted aid calculations.

• International students: The $100,000/$200,000 thresholds apply to U.S. households only; international eligibility follows country-specific economic benchmarks.

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