| On December 10th, 2007, Harvard President Drew | | | | assets out of $750. It’s beyond comprehension, |
| Faust and Dean of the Faculty of Arts and Sciences, | | | | but that is exactly what they did to a New England |
| Michael D. Smith, announced their new, innovating | | | | family with a 2007 income far less than $150,000. |
| financial aid program in an attempt to make Harvard | | | | And, despite my advice, they were petrified at the |
| more affordable for families of all incomes, but | | | | prospect of challenging Harvard’s initial offer, |
| particularly for families of middle and upper middle | | | | fearing they would jeopardize their student’s |
| incomes. Major improvements were made in awarding | | | | future at the prestigious school. Consequently, they |
| grants, eliminating student loans and removing home | | | | didn’t. |
| equity values from the financial aid calculations, as | | | | The second family let down by the announced |
| well as eliminating the contribution made by families | | | | financial aid enhancements is from the Midwest and |
| with incomes less than $60,000: | | | | had an income of just over the $180,000 threshold. |
| “Families with incomes above $120,000 and below | | | | There were some extenuating circumstances and, |
| $180,000 and with assets typical for these income | | | | accordingly, I suggested an appeal. Lo and behold, |
| levels,” Harvard announced, “will be asked to | | | | Harvard sprung for an additional $6,000, but only |
| pay 10 percent of their incomes. For those with | | | | after discounting numerous business expenses that |
| incomes below $120,000, the family contribution | | | | the IRS had accepted! And if all of Harvard’s |
| percentage will decline steadily from 10 percent, | | | | glitter is gold, why was the appeal necessary in the |
| reaching zero for those with incomes at $60,000 and | | | | first place? |
| below.” | | | | One thing is certain, if Harvard low balled their |
| “We want all students who might dream of a | | | | financial aid offers to these families, it is safe to |
| Harvard education to know that it is a realistic and | | | | assume there are others who have had the crimson |
| affordable option,” said President Faust. | | | | pulled over their eyes. I welcome any Harvard family, |
| ”Education is fundamental to the future of | | | | and since we’re on the subject, any other |
| individuals and the nation, and we are determined to | | | | college or college-bound family, to contact me for a |
| do our part to restore its place as an engine of | | | | FREE financial analysis to determine if they too were |
| opportunity, rather than a source of financial stress. | | | | short changed and if there is any way to obtain |
| With no loans, no consideration of home equity, and | | | | additional financial aid. (There usually is.) |
| a dramatic increase in grant aid, we are not tinkering | | | | Over the past ten years, prompted by the leadership |
| at the margins, we are rebuilding the engine…This is | | | | of former president, Neil L. Rudenstine, Harvard’s |
| a huge investment for Harvard, but there is no more | | | | grant appropriations have increased 143 percent, and |
| important commitment we could make. Excellence | | | | in 2008 and beyond, more than 90 percent of |
| and opportunity must go hand in hand,” he said. | | | | Harvard families will qualify for what appears, on the |
| NOT SO FAST WITH YOUR APPLAUSE. Before you | | | | surface, to be a most generous financial aid program. |
| begin offering words of praise for Harvard’s | | | | Two-thirds of the students currently attending |
| proclaimed financial aid initiative, consider whether or | | | | receive some form of financial aid and need-based |
| not, as we’ve seen so many times before, all of | | | | scholarships are awarded to half of them. This brings |
| those carefully chosen words are as empty as the | | | | Harvard’s total aid assistance for 2008 to more |
| pot at the end of a rainbow that nobody ever finds. | | | | than $98 million – about ½ of 1% of the total |
| Could it be that the Ivy League giant has already | | | | funds they have available. |
| balked on their promise and that some of their | | | | Fact is, Harvard has so much money it could actually |
| groundbreaking financial assistance is nothing more | | | | pay the tuition for the entire student body for the |
| than a lot of hype? | | | | next 100 years and still have billions of dollars left |
| Two of the families I counseled are sending their kids | | | | over! So, let the borrower beware. Before you |
| off to join the Class of 2012 and have been gravely | | | | canonize America’s most sought after college for |
| disappointed by the new Harvard financial aid | | | | taking up the financial aid torch, remember that while |
| program as promised in their earth shattering | | | | the lyric may be new, we’ve all heard that tune |
| announcement. | | | | before, and it ain’t necessarily so. |
| With a $35 billion endowment fund, one may wonder | | | | Do the math. Appeal an unappealing award offer, and |
| why Harvard would cheat a family with virtually no | | | | take no grant for granted. |