Paying for college can feel like an insurmountable challenge, especially for families who earn too much to qualify for lower-income assistance but too little to afford full tuition. The good news? Many of the nation’s most prestigious universities have committed to reducing or even eliminating the cost of attendance for middle-income families through generous financial aid policies.
If your household income falls between $100,000 and $200,000, you may be surprised at what’s available to you. Here’s what you need to know about colleges that waive tuition based on family income and how to unlock those benefits through the Free Application for Federal Student Aid (FAFSA).
Colleges That Waive Tuition Based on Income
Several top-tier universities now offer free tuition—and sometimes room and board—for families earning under a certain income threshold. For example, Princeton, Harvard, and Yale all cover full tuition for families making under $100,000 a year. MIT and the University of Pennsylvania go even further, waiving tuition for families earning up to $200,000 annually. Dartmouth covers tuition for students from households earning less than $125,000.
Stanford stands out for both its generosity and transparency. Starting with the 2023–24 academic year, families earning below $100,000 pay nothing—not for tuition, room, or board. Those earning between $100,000 and $150,000 generally have tuition covered, although they may be responsible for housing and meals. Even families with incomes as high as $250,000 may qualify for partial aid, depending on their financial situation. Notably, Stanford excludes home equity when calculating a family’s contribution, a major benefit for homeowners. According to the school, more than two-thirds of undergraduates receive some form of aid, and 86% graduate without any student debt.
FAFSA: Your Gateway to Financial Aid
To access this kind of aid, the FAFSA is essential. The Free Application for Federal Student Aid is the tool colleges use to determine how much your family can afford to pay. FAFSA opens every year on October 1 for the following academic year, and while the federal deadline is June 30, most schools set earlier priority deadlines in February or March. The earlier you apply, the better your chances of receiving maximum aid.
The FAFSA calculates your Student Aid Index (formerly known as Expected Family Contribution), which is based on several factors: your parents’ income and assets, student income and assets, family size, how many family members are in college, and your state of residence. Parent assets include checking and savings accounts, taxable investments, and real estate that isn’t your primary home. Retirement accounts, life insurance policies, and your main residence are excluded. Student assets—like savings accounts or UTMA accounts—are also considered, with a greater portion factored into the aid calculation.
If your parents are divorced or separated, FAFSA will typically only consider the financial information of the parent you lived with most during the last year. If time was split evenly, then the parent who provided more financial support is listed. If that parent is remarried, their spouse’s financial information must also be included.
What Types of Aid Can You Get?
FAFSA determines eligibility for several types of aid. Grants, like the Pell Grant, are awarded based on need and do not need to be repaid. Pell Grants are typically available to low- and middle-income families and can range from about $700 to $7,000 per year.
Scholarships also don’t need to be repaid and can be awarded based on financial need, academic achievement, or other criteria. While Ivy League schools don’t offer merit-based scholarships, most aid at these institutions is extremely generous and based solely on need. You can also search for external scholarships through platforms like Scholarships.com.
Loans are another form of aid, and federal loans tend to be more favorable than private options. Subsidized federal loans are need-based and don’t accrue interest while you’re in school. Unsubsidized loans, on the other hand, are available regardless of financial need and begin accruing interest immediately. Parents can also apply for Parent PLUS Loans, but these should be considered carefully, as they often carry higher interest rates.
How to Fill Out the FAFSA
Getting started with FAFSA is more straightforward than it used to be. First, gather important documents like Social Security numbers and tax returns for both the student and parents. Then, both the student and one parent must create an FSA ID at studentaid.gov.
Once you log in, you’ll be prompted to enter demographic information, list the schools you’re considering (even if you haven’t applied yet), and provide financial details. The FAFSA has been streamlined in recent years and may only take you about 30 minutes to complete.
The IRS Data Retrieval Tool allows you to automatically import tax information, helping ensure accuracy. After you submit the application, you’ll receive a Student Aid Report (SAR) within a few days. This report summarizes your information and includes your Student Aid Index, which colleges will use to build your financial aid package.
Comparing Aid Offers
Once your FAFSA is submitted, you’ll begin receiving financial aid offer letters—typically between March and May. These letters can vary in format and clarity, but you’ll want to focus on how much of your financial need is met through grants and scholarships versus loans.
Ideally, you’ll want to accept free money first (grants and scholarships), then turn to federal student loans if necessary. Try to avoid Parent PLUS or private loans unless absolutely needed, as they tend to have higher interest rates and fewer protections.
A Worthwhile Opportunity
A college degree from a top university can be more affordable than you think. If your family earns under $200,000 a year, schools like Harvard, Stanford, MIT, and UPenn may cover a significant portion—or even all—of the cost. But the key is applying early and accurately through the FAFSA process.
Financial aid isn’t just for low-income families. With proper planning, you could receive a world-class education with little or no debt—and that’s an opportunity worth exploring.