Yale Increases Undergraduate Financial Aid
Yale University today announced that it will augment undergraduate financial aid by reducing students’ expected contribution by $13,780 over four years.
Students on aid at Yale are asked to pay a share of the cost of their education through a combination of term-time earnings, summer earnings, and low-cost loans. The student share will be cut from $7,820 to $5,500 for freshmen and from $8,320-$10,420 to $5,900 for sophomores, juniors and seniors.
The costs that family and student contributions cannot cover are funded by direct University grants.
“These steps ensure that Yale will remain affordable to all qualified students regardless of their financial circumstances,” said President Richard C. Levin. “We believe students can manage this contribution while taking full advantage of Yale’s academic and extracurricular offerings.”
The changes will be effective in the 2002-2003 academic year, and will extend to all Yale students receiving financial aid, not just to incoming freshmen.
Students will be able to meet the reduced contribution through whatever combination of low-cost loans and earnings they believe makes the most sense for them. The annual term-time contribution expected from all students will be $3,900. In addition, freshmen will be expected to contribute $1,600 from summer earnings and upperclassmen will be expected to contribute $2,000. To help Yale students who choose to work on campus during the school year or summer, the minimum student wage will rise immediately from $7 an hour to $9. Many on-campus jobs for students already pay more than the $9 an hour minimum.
Yale estimates that its annual budget for financial aid grants to students in Yale College will rise by $6.3 million a year as a result of the reduced student contribution. Yale also expects the aid budget to increase by an additional $1.2 million as a result of an agreement it made this past summer with 27 other colleges and universities on common procedures for determining the total family contribution toward students’ college education. The overall $7.5 million increase in Yale’s financial aid budget would bring the total for Yale College to more than $34 million annually.
“The changes are costly,” said Yale College Dean Richard H. Brodhead, “but they will reduce the burden on low- and middle-income families and allow Yale to continue to attract the most outstanding students in the nation and the world.”
For the past 30 years Yale has admitted students without regard to their ability to pay for their education – a policy called “need-blind” admissions – and has met the demonstrated financial need of all admitted students. The “need-blind” policies were extended to all international students beginning with the 2001-2002 academic year. All financial aid offered by Yale is need-based.
The average annual scholarship grant to Yale students on financial aid is $16,930, or a total of $67,720 for the four undergraduate years. No portion of the scholarship grant is a loan that has to be repaid, nor does a student have to work for any part of the grant. Under Yale’s changes, the average annual financial aid grant is expected to exceed $20,000 per year. An individual aid grant to a student can be in excess of $30,000 per year of study.
Yale increased undergraduate financial aid in 1998 by exempting the first $150,000 of a family’s assets from the resources considered when calculating parents’ contribution to the cost of their children’s education at Yale.