Stanford Will Now Be Free To All Students From Families That Earn Less Than $125,000 Per Year

Last week, Stanford University announced that more accepted students won’t have to pay anything for tuition, which normally runs nearly $46,000 a year.

Students whose families make less than $125,000 a year and have assets worth $300,000 or less, including home equity but excluding anything that they have saved in retirement accounts, won’t have to pay tuition. Students whose families make less than $65,000 also won’t have to pay for room and board, which can run about another $14,100. Scholarships or grants will cover the costs instead, and the school has a $21 billion endowment. The thresholds were previously $100,000 for free tuition and $60,000 for free room and board.

Students will still have to contribute at least $5,000 a year from part-time work during the school year, working during the summer, and/or savings.

“Our highest priority is that Stanford remain affordable and accessible to the most talented students, regardless of their financial circumstances,” said Provost John Etchemendy in a press release. “Our generous financial aid program accomplishes that, and these enhancements will help even more families, including those in the middle class, afford Stanford without going into debt.” The school says that 77 percent of undergraduates leave without student debt.

That makes Stanford graduates somewhat unique, as about 70 percent graduate with debt, owing an average of $29,000 at the end of last year. Student loan debt has tripled over the last decade. Meanwhile, nearly a third of those who have started to pay back the loans are more than three months behind on payments. READ MORE