On November 19 and 20, the University of Pennsylvania and the Massachusetts Institute of Technology (MIT), two prestigious Ivy League universities in the United States, announced a new financial aid policy starting from the 2025-26 academic year. Both universities will offer full tuition waivers for students from families with an annual income below $200,000. This marks an increase from the previous threshold of $140,000 in the 2024-25 academic year.
In determining scholarships, the University of Pennsylvania will no longer consider the primary residence’s asset value.
MIT also announced that starting from the fall semester of 2025, students from families with an annual income below $100,000 can receive full coverage of all expenses, including tuition, housing, dining, fees, book expenses, and personal allowances. This new threshold is an expansion from the previous requirement of an income below $75,000 for undergraduate students in the 2024 academic year.
These measures will apply to all eligible undergraduate students, not just incoming freshmen.
According to MIT, 80% of American families fall below the $200,000 income threshold, while 50% of families have an income below $100,000.
MIT has allocated $167.3 million for undergraduate students based on need-based financial aid this year, representing an increase of about 70% from a decade ago.
MIT President Sally Kornbluth stated, “The cost of college is a concern for all families. We are committed to providing this transformative educational experience for the most talented students, regardless of their financial circumstances. So, to every student dreaming of coming to MIT, do not let cost be a barrier.”
Acting President J. Larry Jameson of the University of Pennsylvania said that this bold new initiative expands economic assistance to more families, aligning with the university’s commitment to meeting 100% of a family’s financial need without loans.
The University of Pennsylvania estimates that the new plan will cost around $6 million annually, funded by the institution, and plans to seek donations for ongoing support. This initiative aims to enhance opportunities for students from all economic backgrounds to attend the University of Pennsylvania while addressing the specific needs of middle to high-income families.
Among the 10,000 undergraduate students at the University of Pennsylvania, approximately 46% currently receive financial aid, with an average aid package of $70,579 covering 76% of total cost of attendance. Total cost of attendance includes tuition, lab fees, health insurance, housing, dining, books, laptops, living expenses, and transportation.
The University of Pennsylvania announced in the 2023-24 academic year that students with family incomes below $75,000 can receive full funding for tuition, fees, housing, and dining costs, through scholarships and work-study, an increase from $65,500 in the 2022-23 academic year. This expansion impacted 200 students, with an average increase of $16,000 in aid per student.
Mark Dingfield, the Vice President for Finance at the University of Pennsylvania, expressed, “The University of Pennsylvania reaffirms its commitment to its core principles – that students from all backgrounds can afford a world-class education, not just those from low-income backgrounds or those able to pay full price.”
The University of Pennsylvania is one of the few universities that exclude the net value of a student’s family home when determining scholarships. Approximately 900 current students are expected to see an average increase of around $4,000 in financial aid. Additionally, for an extra 180 students from middle-income families, the financial aid package will see an average increase of $10,000 per person.