A few weeks ago, we wondered why Harvard's competitors weren't matching its price cut for middle and upper middle-class students. Now, Yale has responded to its Ivy League competitor with some financial-aid news of its own.
Less than a month after Harvard upped the ante by eliminating loans from its financial-aid programs and created a formula that would lower tuition payments for low and middle-income students, Yale announced that it too will use its endowment to fund more financial aid.
Yale hasn't disclosed its formula yet so we don't know whether the increased funding will go towards more grant money or eliminating loans or both. The university did, however, announce that it plans to increase the funds towards financial-aid and other university programs by 37% to $1.15 billion in the 2008-2009 academic year.
Schools like Emory, Williams, Princeton, and Davidson have already instituted major changes to their financial-aid programs. Why? Well, it certainly hasn't hurt that some lawmakers are pressuring them to spend more of their endowments — and thus finally doing something about the fact that tuition has been rising faster than the rate of inflation. Which of course has nothing to do with the fact that it's election season or anything.
Ultimately this is a price war just like any other in any industry. In this case, schools are trying to outbid each other to get prospective students to choose it over others. We can't wait to see who the next lowest bidder will be.
More on Student Loans:
The Potty Mouth of a Student Lender's CEO
Why Don't They...Just Match Harvard's Generosity
Our Holiday Wish List: Five Things From Student Lenders
Virgin Money's Student Loan Alternative
| Type | Today | Week Ago |
|---|---|---|
| 15 Year Fixed | 4.62%  |
4.67% |
| 30 Year Fixed | 5.15% | 5.15% |
| 1 Year ARM | 3.48% |
3.51% |
| 5/1 Year ARM | 3.62% |
3.68% |
| Type | Today | Week Ago |
|---|---|---|
| Line of Credit | 4.89%  |
4.88% |
| 10 Year Loan | 7.47% | 7.47% |
| 15 Year Loan | 7.61% |
7.60% |
| Type | Today | Week Ago |
|---|---|---|
| Interest Checking | 0.28% | 0.28% |
| Money Market/Savings | 0.38% | 0.38% |
| 12 Month CD | 1.13%  |
1.15% |
| 60 Month IRA CD | 2.40% |
2.41% |
| Type | Today | Week Ago |
|---|---|---|
| Cash Back Cards | 12.66% |
12.68% |
| No Annual Fee Cards | 12.08% |
11.97% |
| Reward Cards | 12.75% |
12.61% |
| Small Business Cards | 11.01% |
10.94% |
| Student Cards | 13.77% |
13.49% |
| Platinum Cards | 12.26% |
12.11% |
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honestly im f**king mad. Im a middle income med student at a top 10 school and im still being forced to take loans. F**k this! these a**hole kids that will be getting tuition breaks are going to be in frats and sororities not doing anything useful for 4 years. F**K THIS!
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Sounds like someone's jealous.
I'd say it's about time that these schools use their endowments as they were intended: to help students. The lower-income students have had a free ride for decades. The fact that they're now helping middle-income students is even better.
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Dear Morons,
As the era of the internet age approaches, all information everywhere is now free for everyone to access. There are support groups and teaching materials, games, and applications which can all be "borrowed" or "stolen" depending on your outlook.
If you still wanna pay some stupid institution or teacher to help you learn, you'll have to start by admitting your own lack of motivation.
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Wow, you're exactly right... We all pay for lack of motivation...
Dang, I must really be lazy considering I'm in Grad School.
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"middle income med student"
"im still being forced"
RE: Comments made by madashell
Quit your bitching as a graduate of a "top 10 school" you no doubt will be earning plenty of money to pay off those loans. And you're not being forced, you decided to take out those loans. Pleeease!
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Ivy league schools are completely overrated, and I don't want to attend one ever. Even if I had the grades and had jumped through the right hoops.
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One of the top Financial Aid programs in the country was pioneered by The University of Virginia.
http://www.virginia.edu/accessuva/
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I'm mad also. I paid ridiculous fees during the late 1990s and nobody is standing in line to give me money back. I'm under-employed due to the parents of these children hogging up all better paid job slots.
Meanwhile I'm responsible, purcjhase a house three years ago with a fixed rate 30 year note. What do they do? The provide for a 5 year lock in for people who bought way too much real estate on teaser rates. Yet these same people get to have a large tax break for the interest they've paid.
I'm SICK AND TIRED of seeing responsibility smashed and destroyed. Now I've got the AMT banging on my heels, not being able to make more (and take it home) with my part time business yet I'm forced to work more because of ever increasing fuel, food and other costs.
Responsibility is for idiots, and I am an idiot. I should have guessed the bottom would fall out while the 1960's generation continues to make policy.
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i'd hardly call harvard's decision to drop loans as a financial aid component "upping the ante" - princeton made that same decision seven years ago.
sounds like the rest of ivy league is finally waking up!
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Sounds like you will make a compassionate and sympathetic doctor.
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