02/14/2018 | Press release | Distributed by Public on 02/14/2018 18:27
The trustees earmarked $162 million for undergraduate need-based financial aid in 2018-19.
By Chris Bliss
At its Feb. 11-13 meeting, the Stanford University Board of Trustees approved a 3.5 percent increase in undergraduate tuition for the 2018-19 academic year. The board also reaffirmed its commitment to a strong financial aid program that meets the full demonstrated financial need of every undergraduate who qualifies for aid.
Total undergraduate charges will increase to $67,117 next year, including $50,703 for tuition, $15,763 for room and board, and $651 for a mandatory health fee.
Due to Stanford's financial aid program, most students will pay far less. The need-based aid program is designed to ensure that a family's economic circumstances will not prevent qualified students from attending.
For current students on financial aid whose family financial circumstances have not changed dramatically, Stanford will cover the increase in tuition, room and board in 2018-19. The university expects to spend approximately $162 million in Stanford-funded need-based undergraduate financial aid in 2018-19, an increase of 5.4 percent.
'Meeting the cost of an undergraduate education is a significant family investment, and Stanford is committed to providing a comprehensive need-based financial aid program that makes it possible for admitted students to attend,' said Jeffrey S. Raikes, chair of the Board of Trustees.
Raikes said tuition revenue represents 51 percent of Stanford's $1.45 billion general funds budget, which supports academic programs, support services and infrastructure needs.
'Tuition is a critical source of funding for maintaining a strong academic enterprise at Stanford, and its role is further underscored by the volatility of investment returns and uncertainties around the federal research funding environment and the impact of the tax on endowment income,' Raikes said.
Commitment to financial aid
Under Stanford's undergraduate financial aid program, parents with incomes below $65,000 and assets typical of that income level are not expected to pay tuition, mandatory fees, room or board. The university also will continue to provide free tuition for parents with incomes below $125,000 and typical assets.
Currently, undergraduate students who are awarded need-based aid receive an average scholarship of $44,894 from Stanford. Nearly half of Stanford undergraduates receive need-based aid from the university, and 67 percent receive some form of financial aid toward the cost of attendance from a variety of internal and external sources.
Most Stanford undergraduate students are able to graduate debt-free. In 2016-17, 82 percent of undergraduates completed their Stanford degrees without student debt. Of those who graduated with some debt, the median amount of indebtedness was $13,000.
The 18 percent of graduating Stanford undergraduates with debt in 2016-17 is down from a level of 44 percent in 2006-07. Under Stanford's aid program, students are not expected to borrow to meet their educational costs, so the decision to borrow is up to individual students and families.
Over the last 10 years, the average 'net price' of a Stanford undergraduate education, adjusted for inflation, has increased by 0.6 percent annually. The net price is the price that students pay, on average, after grants and scholarships are considered. Individual financial aid packages will vary depending on demonstrated financial need.
Tuition for graduate and professional studies
General graduate and professional tuition also will increase 3.5 percent in 2018-19 under the action by the Board of Trustees. Detailed information for these programs, which have different tuition levels, will be posted on the registrar's website. Tuition for first-year MBA students at the Stanford Graduate School of Business will increase 2.5 percent, and there will be no increase for the MSx program at the GSB.
The campus Health Service Fee, a mandatory fee for all students on the main campus, will increase from $630 this year to $651 in 2018-19.