Harvard University recently announced that undergraduate tuition will be free for families earning $200,000 or less beginning with the 2025-26 academic year.
The university joins a growing number of institutions that are expanding financial access to higher education for families who would otherwise struggle to afford it.
The Massachusetts Institute of Technology (MIT) and the University of Pennsylvania, for example, also offer free tuition for families earning less than $200,000.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The University of Michigan waives tuition and mandatory fees for in-state students whose families earn less than $125,000, and the University of Texas does so for families earning less than $100,000.
Many of these tuition-free offerings have strings attached, including state residency requirements (primarily for public institutions), full-time attendance and minimum grade-point-average requirements.
While a tuition-free education helps lessen the financial burden of paying for college, it doesn’t mean attending is cost-free, says Betsy Mayotte, president and founder of The Institution of Student Loan Advisors (TISLA), a website that offers free student loan advice.
Mandatory student fees, which typically cover certain administrative, service or activity costs, may not be included in the tuition waiver.
And housing, food, books, health insurance, transportation and child care might not be part of the aid package, so families have to budget for those expenses, Mayotte says.
These non-tuition expenses can add thousands of dollars to annual attendance costs. At Harvard, for example, undergraduate tuition is $56,550, but the total cost of attendance is nearly $83,000, with about $26,000 for non-tuition expenses, according to the university’s website.
College expenses outside of tuition
It’s a good idea to create a comprehensive budget that accounts for college attendance expenses outside of tuition. These may include:
- Housing and meals (on or off campus)
- Textbooks and course materials
- Computers and other technology needs
- Local transportation costs
- Health insurance
- Travel expenses to visit home
- Club or activities fees
- Personal expenses, such as clothing and household items
Most universities publish these estimated expenses on their websites to help families budget for their all-in costs.
You may be able to reduce the costs by applying for work-study opportunities and external scholarships that cover non-tuition expenses.
Your high school counselor can help you identify scholarships you qualify for, or you can look up options at CareerOneStop.org, the Department of Labor’s online scholarship search tool.
Even if your tuition is covered, fill out the Free Application for Federal Student Aid (FAFSA) form to see what other financial assistance you qualify for, Mayotte recommends.
Federal student loans can provide a safety net in case tuition-free coverage changes unexpectedly or you no longer qualify for it, she adds.
Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.
Related content
-
Dow Dives 797 Points as Government Opens: Stock Market TodayThe process of pricing and re-pricing realities old and new never stops, and next week promises to be at least as exciting as this week.
-
3 Ways High-Income Earners Can Maximize Their Charitable Donations in 2025Tax Deductions New charitable giving tax rules will soon lower your deduction for donations to charity — here’s what you should do now.
-
Protect Your Family From Costly Festive Fails With These Holiday TipsHaving people over this holiday season? Before opening the door to guests, here are some perils to prepare for in advance.
-
What's Next for the Fed — as an Institution?The U.S. central bank was already contending with economic challenges. Now comes a political one.
-
When an Extended Car Warranty is Worth It — and When it's NotGot the "we're trying to reach you about your car's extended warranty" call? Here's what you need to know before buying.
-
No-Penalty CD or High-Yield Savings? What Works Best NowDiscover which option can help you reach your savings goals quickly.
-
Seven Practical Steps to Kick Off Your 2026 Financial PlanningIt's time to stop chasing net worth and start chasing real worth. Here's how to craft a plan that supports your well-being today and in the future.
-
Are You Saving Too Much for Retirement? Know These Surprising DownsidesYour money may be better served outside of a retirement account.
-
Dental Cost Advice for New Retirees, From a New RetireeWhat I faced in my first dental bill after retiring.
-
Fish and Chips? More Like Fish and a Side of Customer Confusion and AngerYou expect chips — French fries, actually — to come with your order of fish and chips? Think again. This restaurant could be violating the truth-in-menu laws.
