News from
PRINCETON UNIVERSITY
Office of Communications, Stanhope Hall
Princeton, New Jersey 08544
Tel 609/258-3601; Fax 609/258-1301
Contact: Justin Harmon
609/258-5732
Date: January 26, 1998
Princeton Changes Its Financial Aid Policies To Increase
Affordability For Lower and Middle Income Students
Press release: Princeton
Changes Its Financial Aid Policies
Press release: 3.7 Percent
Increase in Student Fees Lowest in Three Decades
Fact sheet: Questions and
Answers about the changes to Princeton's financial aid program
Press kit (the above and accompanying charts as they were faxed to media; 15 pages; PDF document)
All of the charts
(6-pages; PDF document)
Charts: Four Case Studies (4-pages;
PDF document) (GIF shown
below)
Chart: Amount of Home Equity Considered... (1
page; PDF document)
(GIF shown below)
Chart: Student Loan Table (1 page;
PDF document)
(GIF shown below)
Case Study 1. A student from a family with an annual income of $30,000, savings of $10,000, and home equity of $40,000 would receive a scholarship increase of $4,380, to a total scholarship of $28,200. This family benefits both from the elimination of any contribution based on home equity and the absence of any loan requirement. The total annual cost to this student and family would be $2,780, plus the $2,060 the student would earn at a campus job.
Case Study 2. A student from a family with an annual income of $50,000, savings of $15,000, and home equity of $60,000 would receive a scholarship increase of $3,080, to a total scholarship of $22,500. This family benefits from the elimination of home equity and a $1,580 reduction in the loan requirement. The total annual cost to this student and family would be $5,980, plus the campus job and a loan of $2,500.
Case Study 3. A student from a family with an annual income of $65,000, savings of $20,000, and home equity of $90,000 would receive a scholarship increase of $3,500, to a total scholarship of $16,240. This family benefits from the elimination of home equity. The total annual cost to this student and family would be $10,660, plus the campus job and $4,080 loan.
Case Study 4. A student from a family with an annual income
of $85,000, savings of $40,000, and home equity of $110,000 would
receive a scholarship increase of $2,700, to a total scholarship of
$7,090. This family benefits from a 50% reduction in its contribution
from home equity.
Amount of Home Equity Considered in Award Calculation.
Under Princeton's revised policy the value of the home will be
excluded entirely for families with incomes up to $60,000 a year
whose home equity is $150,000 or less, and for families with incomes
up to $90,000 whose home equity is $100,000 or less. The home equity
will be included at half its actual value for families with incomes
between $90,000&endash;120,000 whose equity is $100,000 or less; for
families with incomes between $60,000&endash;90,000 whose equity is
between $100,000&endash;150,000; and for families with incomes below
$60,000 with equity between $150,000&endash;200,000. For other
families with higher incomes or higher home equity who qualify for
financial aid, home equity will be included at three-quarters of its
actual value. Since these changes only benefit homeowners, Princeton
also has increased its "asset protection allowance" for renters.
Student Loan Table. Student's annual loan requirement under
Princeton's new financial aid program, by income level, in dollars.
"Total Family Income" includes family's taxable and non-taxable
income, as derived from the College Scholarship Service PROFILE
form.
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