Stanford Makes Tuition Free for Families Making Less Than $125,000 Per Year
PALO ALTO, Calif., April 2 (UPI) — Stanford University is taking steps to help students fight the increasing burden of student debt.
The university is offering free tuition to students whose parents make less than $125,000 per year and free room and board for those making less than $65,000.
Parents who earn less than $125,000 and have “typical assets,” less than $300,000, will not be expected to pay for children to go to one of the highest ranked schools in the United States.
“Typical assets” included in an adjusted net worth is the sum of checking, savings, and cash accounts; investments, home equity, capped at 1.2 times annual income; equity in other real estate and business net worth. No formal retirement assets including 401k, 403b, IRA and Keogh accounts are factored into the analysis.
Students are required to pay $5,000 per year from summer jobs, savings and part-time work during the school year. Parents may pay the students’ contribution. Stanford also stipulates the contribution can be covered by outside scholarships and student loans.
The university enrolled a large number of wealthy students and in 2010, the director of financial aid at Stanford reported the average income of families at the university was $125,000. It also has one of the largest university endowments with $21 billion.
Students at Stanford also are notified of how much money they will pay, whether it is affordable and how much they will have to take out in student loans before they even apply. Most schools do not let students know until they have applied, been accepted and filled out all of the financial aid paperwork.
Student debt has been a growing problem in the United States. In 2013, 69 percent of college graduates were leaving school with student loans. Reform for student loans is a political issue that has come to the forefront recently. President Barack Obama recently announced a plan to make community college free for students.
