Stanford Financial Aid Equation Removes Home Equity

PALO ALTO, CA -- Stanford University will expand its financial aid program next year by removing home equity as a factor in the financial aid calculation for undergraduates, the Board of Trustees announced this month in adopting tuition and fee levels for the 2019–20 academic year.

Stanford has a long-standing commitment to providing an affordable education to all students, regardless of their economic circumstances, Stanford News Service reported. The new policy will exclude home equity from the determination of the expected parental contribution in financial aid eligibility calculations, benefiting many middle-income families.

The policy builds on Stanford’s existing financial aid program which, in 2018–19, provides approximately $162 million in need-based aid to undergraduate students. Under Stanford’s program, parents with annual incomes below $125,000 and assets typical of that income level pay no tuition. Parents with an income at or less than $65,000 and typical assets pay no tuition or room and board, the news service explained.

“Stanford is committed to meeting the full demonstrated need for every admitted undergraduate who qualifies for financial aid, without expecting them to borrow to meet their need,” board Chairman Jeffrey S. Raikes said. “Removing home equity from the financial aid calculation is the first of what we expect will be several additional steps to further enhance our undergraduate aid program in the next few years.”

Stanford’s total undergraduate need-based financial aid budget is expected to increase 7 percent in 2019–20 to support the home equity change and other cost increases, thus ensuring that Stanford remains accessible to all.

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