Stanford will remove home equity as a factor in calculating financial aid from tuition and fee levels for undergraduate students starting next academic year, the Board of Trustees announced Tuesday.
“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,” said Jeffrey Raikes ’80, chair of the board, in a press release.
Home equity is the value of a homeowner’s interest on their house, according to Investopedia. The change will provide more support for middle-income families, according to the release.
The budget for need-based financial aid is expected to increase seven percent next year. Currently, the financial aid program provides $162 million in need-based aid to undergraduate students. Families with annual incomes below $125,000 with similar assets currently do not pay tuition, and parents with an income at or less than $65,000 with similar assets do not pay tuition or room and board.
Undergraduate tuition for 2019-2020 will be $52,857, 4.25 percent higher than the current academic year, the board announced. The board set tuition fee levels two months early to provide information to students admitted through Restrictive Early Action, a change which the board expects to uphold.
The average net price to attend Stanford has increased 0.3 percent in the past decade, accounting for financial aid, according to the release.