MIT Expands Free Tuition to Families Earning Under $200,000
The Massachusetts Institute of Technology (MIT) has unveiled a major expansion of its financial aid program, allowing undergraduate students from families earning less than $200,000 annually to attend tuition-free. This adjustment raises the threshold significantly from the previous $140,000 cap, benefiting approximately 80% of American households.
For families earning below $100,000, the program offers even greater support. These families will no longer need to contribute to the total cost of their child’s MIT education, which includes tuition, housing, dining, fees, and allowances for books and personal expenses. Previously, this full coverage was limited to families earning under $75,000.
Families with incomes between $100,000 and $200,000 will now contribute on a sliding scale. At the upper end of this bracket, parents might pay up to $23,970 annually, equivalent to this year’s costs for housing, dining, and fees.
MIT’s financial aid initiatives have already proven impactful. Last year, the median annual cost for an undergraduate receiving aid was $12,938, with 87% of the Class of 2024 graduating debt-free. Students who took loans graduated with a median debt of just $14,844.
This expanded aid is funded by MIT’s endowment, which has allocated $167.3 million for need-based undergraduate financial aid this academic year – a 70% increase compared to a decade ago.
Comparative Context
MIT’s initiative places it among the most generous financial aid programs in higher education. Institutions like the University of Pennsylvania and Rice University also offer free tuition for families earning up to $200,000, while Brandeis University provides full tuition for families earning $75,000 or less and half tuition for those in the $75,001 to $200,000 bracket.
Despite the high sticker price of Ivy League and comparable institutions, their net costs after financial aid are often lower than those of non-Ivy League schools. The average annual net cost for Ivy League students is $23,234, compared to over $32,000 at other top-ranked universities.
Return on Investment
With growing concerns about student debt, the return on investment of higher education is under scrutiny. MIT graduates report an average starting salary of $126,438, significantly outpacing the median early-career earnings of graduates from non-Ivy League institutions, which is around $58,643.
MIT’s expanded financial aid not only eases the burden on students and families but also positions the institution as a leader in accessible, high-value education. The move is expected to encourage other universities to adopt similar models, bringing relief to families nationwide.
