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Harvard boosts financial aid

(Agencies)
Updated: 2007-12-11 11:35

Survey data showed those who did enroll were passing on research opportunities and time with friends in order to take paying jobs, Fitzsimmons said, adding he worried about an "Upstairs, Downstairs" experience. Some students believed they couldn't afford to take unpaid internships.

"The rich students felt they had very good access to these types of things, but the middle-income and poorer students didn't think they did," Fitzsimmons said.

Harvard's plans will be closely noted in higher education — even though most private colleges couldn't possibly match them. Because of Harvard's visibility, colleges will cite it as a high-profile statement that they take seriously middle-class concerns about college affordability. Education lobbyists in Washington are trying to fend off calls that colleges be required to spend more of their money to keep prices down, even if it means dipping further into endowments.

"This is big news," said Charles Grassley of Iowa, the ranking Republican on the Senate Finance Committee, who has criticized the wealthiest schools for their prices. "This could inspire other expensive colleges to make tuition more affordable. Choosing a college should be based more on brain power than bank account size."

Yale University said Monday that it has been planning its own announcement about enhancing financial aid, which is scheduled for January.

Some schools may be irked by Harvard's plans, particularly those that compete against Harvard for top students. They will likely grumble, at least privately, that Harvard is using its billions to "buy" the best.

Until the early 1990s, a group of elite colleges, including Harvard, offered all students the same aid packages, arguing money shouldn't be a factor in students' decisions. But that practice was curtailed by a federal antitrust suit, and now students are more free to play schools against each other for aid.

Such a big boost in aid by Harvard could accelerate a kind of spending arms race. Still, that would be the kind of competition — to make college more and more affordable — that financial aid advocates would welcome, saying it's better than colleges competing to build more luxurious dormitories and health club-style gyms.

Fitzsimmons said competitive reasons played a "negligible" role in the decision and that a far bigger one was "the increasing pain we've been hearing about" from middle-income students and families.

Still, a growing number of top students are being lured by full scholarships to honors colleges at state universities. Fitzsimmons acknowledged Harvard doesn't want to lose the best and brightest. He noted that — compared to the list price, at least — for almost all families Harvard would now cost no more than their state flagship school.

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