Yale said it is increasing the number of families that qualify for aid, eliminating the need for students to take loans, enhancing its grants to families with more than one child attending college, exempting the first $200,000 of family assets from the assessment of need, and increasing expense allowances for foreign students.
Families with incomes less than $120,000 will see their contributions cut by more than 50 percent, while most families with incomes between $120,000 and $200,000 will see cost reductions of 33 percent or more, Yale officials said.
Families earning less than $60,000 will not make any contribution, while those earning between $60,000 and $120,000 will typically contribute 1 to 10 percent of family income, and families earning more than $120,000 will contribute an average of 10 percent of income.
For example, Yale said, a family with an income of $90,000 would contribute $2,950 per year under the new policy, down from $12,550 under the old policy. A family making $180,000 would contribute about $23,000, down from $38,000.
Student contributions would also decline from $4,400 under the old policy to $2,500 under the new policy.
Yale officials announced last week that the school will spend more money from its $22.5 billion endowment in the 2008-2009 academic year on financial aid and scientific research. The university intends to increase the annual endowment payout for such programs by 37 percent to $1.15 billion, Levin said.
Yale's endowment is topped only by Harvard's, which stands at about $34.9 billion.
--Associated Press
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