When $200,000 Isn’t Too Much: How Elite Universities Are Expanding Financial Aid
By Tim McFillin
For years, families earning more than $200,000 annually assumed they were destined to pay full price if their children wanted to attend elite colleges. That belief was rooted in decades of financial aid formulas that favored lower- and middle-income households. But over the last couple years, need-based aid packages have improved in a big way. Ivy League and other highly ranked universities are now making college more affordable—even for households many once considered “too wealthy” to qualify.
This shift has significant implications for parents navigating the college planning process. It expands opportunity, redefines who qualifies for help, and challenges assumptions about what “middle class” really means at the nation’s most selective schools.
What Changed?
Several top institutions have expanded eligibility dramatically, redefining who can receive aid:
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Harvard University – Families earning up to $200,000 AGI with typical assets now pay no tuition. Families earning under $100,000 have the entire cost of attendance (tuition, housing, meals, insurance, even travel) covered. Retirement accounts and primary home equity are excluded from calculations.
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MIT – Families earning under $200,000 AGI receive free tuition. Retirement accounts are excluded; home equity may be counted but is capped so it doesn’t create an outsized penalty.
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University of Pennsylvania – Tuition-free for families with $200,000 AGI or less with typical assets. Retirement accounts and home equity are excluded from aid formulas.
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Princeton University – One of the most generous policies: free tuition for families earning $250,000 or less with typical assets, and 100% of the cost of attendance covered for families earning $150,000 or less. Retirement accounts and home equity are excluded.
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Stanford University – Families earning under $150,000 pay no tuition, and those under $100,000 may receive full cost of attendance. Retirement accounts and home equity are excluded.
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Caltech – Families earning under $200,000 generally receive full tuition coverage, and those under $100,000 have 100% of cost of attendance covered. Neither retirement assets nor home equity are counted.
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Yale University – Guarantees free tuition for families earning under $75,000 AGI. No official income cutoff for higher incomes, but aid is case-specific. Both retirement accounts and home equity are considered in aid formulas.
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Dartmouth College – Families with $125,000 or less qualify for free tuition. Some retirement assets and home equity are counted in aid formulas.
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Columbia University – Tuition-free for families with $150,000 AGI or less; retirement assets are counted, but home equity is not.
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Brown University – Free tuition for families with $125,000 AGI or less. Retirement assets and home equity are not considered.
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University of Chicago – Tuition-free for families earning under $125,000. First-generation students receive an additional $20,000 annual scholarship plus a guaranteed summer internship. Neither retirement accounts nor home equity are counted.
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Duke University – Families in North or South Carolina earning under $150,000 qualify for free tuition. Retirement assets are excluded; home equity is included but capped based on income. Out-of-state families are evaluated individually.
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Johns Hopkins University – Excludes retirement and home equity in formulas. Starting in 2024, free tuition for medical school is available for families earning up to $300,000; those under $175,000 AGI have the entire cost of attendance covered in medical school.
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Northwestern University – Counts home equity and some retirement assets in formulas. No set income limit for aid; eligibility is reviewed case by case through the CSS Profile.
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Cornell University – More conservative: families earning under $75,000 AGI qualify for free tuition. Retirement accounts are excluded, but home equity counts up to 1.5x family income (so families aren’t overly penalized).
Divorced Parent Considerations
For families where parents are divorced, some schools do not require information from the non-custodial parent—a critical factor in qualifying for aid. Examples include William & Mary, Cornell (Law and Vet Medicine), Drexel, Elon, George Washington Law, Georgetown, Harvard Dental, Juilliard, UNC Chapel Hill, Northwestern, Stanford Law, Penn Dental and Vet, Vanderbilt, Wisconsin-Madison, and Yale Medical/PA.
Knowing which schools apply these rules can make a big difference in aid eligibility.
Why Are Elite Schools Expanding Aid?
There are three driving forces behind this shift:
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Rising Costs and Affordability Pressure
With sticker prices exceeding $90,000 per year, even households earning $200,000+ struggle to cover costs without loans or tapping retirement savings. Elite schools recognize the financial strain. -
Equity, Access, and Diversity
These schools want broader representation across socioeconomic lines. Expanding aid acknowledges that debt burdens and cost of living pressures extend far beyond the lowest-income families. -
Reputation and Competition
Ivy League and peer institutions are under scrutiny for elitism. Offering generous aid reinforces their reputations as accessible and inclusive, while helping them attract top talent.
What This Means for Families
For parents in the $150,000–$250,000 range, these policies can be game-changers. Where once elite colleges seemed financially out of reach, they may now be among the most affordable options.
Key points to remember:
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Don’t assume your income disqualifies you. Many schools now offer significant aid above $200,000 AGI.
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Run the Net Price Calculator. Each school has one, and results vary widely.
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Consider assets carefully. Retirement savings and home equity are treated differently at each school—sometimes excluded entirely.
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Multiple children in college? That can boost your eligibility significantly.
The Broader Impact
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Families may expand college lists to include schools once dismissed for cost.
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Pressure may grow on other universities to match the generosity of Ivy League peers.
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These changes could reduce the reliance on loans at elite institutions, creating ripple effects in the broader student debt conversation.
Final Thoughts
Six-figure earners used to assume financial aid was out of reach. That assumption is no longer true. The nation’s top universities are recognizing that in today’s higher-education landscape, $200,000—or even $250,000—does not guarantee affordability.
For parents, the message is simple: run the numbers, understand each school’s policies, and don’t rule out elite universities too quickly. What once felt impossible may now be within reach—and the doors to the Ivy League and other top schools may be wider open than ever before.