Institute goes tuition free for undergraduates with family income below $200,000 effective 2025-2026
Schmill: “With the need-based financial aid we provide today, our education is much more affordable now than at any point in the past.”
On Nov. 20, MIT announced that it would become tuition free for undergraduates whose families earned below $200,000 starting in the academic year 2025-2026. According to an article from MIT News, “eighty percent of American households meet this income threshold.” Additionally, undergraduates with family incomes of below $100,000 can now be expected to bear no portion of the full cost of attending the Institute.
Critically, the announcement clarifies that families with an income between $100,000 and $200,000 with typical assets can expect to pay on a sliding scale from $0 up to a maximum of approximately $23,970, which is this year’s amount for non-tuition expenses.
The announcement marks a significant widening of income eligibility for financial assistance. The new $100,000 threshold for full cost of attendance is a 33% increase from $75,000 for the current academic year and the $200,000 threshold for tuition-free attendance is a stark 43% increase from the current $140,000. In the announcement, the Institute cited its endowment, namely “generous gifts made by individual alumni and friends,” as enabling the expansion in financial aid.
Per the MIT student financials website, financial aid awards stood at $167.3 million in need-based scholarships during the 2024-2025 academic year, a five percent increase over the prior year during which MIT awarded $158.2 million. With the announcement, such investment in financial aid awards is expected to top over $170 million.
According to the Institute, MIT is one of nine colleges that are need blind and full need, meaning that an applicant’s financial background is not considered in the admissions process and the Institute strives to meet demonstrated need with aid. Over half of undergraduates receive MIT need-based aid
The announcement marks the first of several recommendations put forth by an Institute-wide faculty-led Committee on Undergraduate Admissions and Financial Aid publicly charged by MIT President Sally Kornbluth to review the Institutes’ admissions and financial aid policies.
Kornbluth said that “MIT’s distinctive model of education — intense, demanding, and rooted in science and engineering — has profound practical value to our students and to society.” Kornbluth stated that “today’s announcement is a powerful expression of how much our graduates value their MIT experience.” She added that “in effect, our endowment is an inter-generational gift from past MIT students to the students of today and tomorrow.”
Stu Schmill ’86, Dean of Admissions and Student Financial Services, said “with the need-based financial aid we provide today, our education is much more affordable now than at any point in the past,” noting that the Institute’s reputation and educational value has grown since his time as a student.
According to the article, 87 percent of students in the Class of 2024 graduated debt-free: those with debt had a median debt of $14,844. The average starting salary was $126,438 for graduates entering industry.
The announcement comes amidst growth in the Institute’s assets as reported by Glen Shor, Executive Vice President and Treasurer and The Tech. MIT’s overall net assets climbed 4.3% over the fiscal year 2023 to $33.6 billion. According to the report, tuition revenue increased by 4.6 percent to a total of $428.0 million.
The announcement also coincides with the early action admissions cycle for the Class of 2029. In a blogpost on the MIT Admissions blog, Director of Communications and Special Projects at MIT Admissions and Student Financial Services Chris Peterson SM ’13 wrote that “we are mission-driven to make MIT a magnet for the most talented students… and to make it accessible to the best students regardless of their financial circumstances.”