Higher education has long been seen as a pathway to opportunity, but for many, rising tuition costs and broader economic pressures have made that path increasingly difficult to navigate. While some institutions have introduced free tuition initiatives, the affordability crisis extends beyond just tuition. Universities are now taking a broader approach, examining ways to reduce costs in other areas and addressing the financial pressures that students and families face.
Rising Costs and Economic Pressures
The affordability of college must be considered in the context of broader economic trends. According to the U.S. Census Bureau, real median household income rose to $80,610 in 2023, a 4.0% increase from 2022. While this marks the first significant uptick since 2019, inflation has eroded purchasing power over the past few years. Since 2021, inflation rates have remained high—4.7%% in 2021, 8% in 2022, 4.1% in 2023, and 2.9% in 2024—making it harder for families to keep up financially.
A 2024 report from the Brookings Institution highlights the complex relationship between escalating college costs and student debt. While tuition has increased by 114% since 1993, average net prices—after factoring in grants and scholarships—have risen by 46%. However, student borrowing has tripled over the same period. Higher-income and graduate students have experienced the steepest increases in net tuition prices, while low-income undergraduates have seen some relief through need-based financial aid.
Expanding Access
Recognizing the need to provide solutions, some universities are expanding existing free tuition programs while also addressing related education expenses such as housing, fees, and meal plans.
The Massachusetts Institute of Technology (MIT) recently extended its free tuition policy to now include families earning up to $200,000 annually, up from the previous threshold of $140,000. Additionally, for students from households earning under $100,000 per year, MIT’s zero parental contribution policy ensures that all educational costs—including fees, housing, and meal plans—are fully covered. This expansion allows 80% of U.S. families to qualify for free tuition, with half of them meeting the requirements for zero parental contribution.
“The cost of college is a real concern for families across the board,” MIT President Sally Kornbluth said when announcing the program in November 2024. “We’re determined to make this transformative educational experience available to the most talented students, whatever their financial circumstances.”
Other private institutions are making similar moves. Carnegie Mellon University, St. John’s College, and Brandeis University now offer free tuition for households earning less than $75,000 annually. Brandeis also introduced a 50% tuition discount for students from families earning up to $200,000. Roosevelt University in Illinois launched the Roosevelt Pledge, which will provide tuition-free education for students with family incomes of $50,000 or less starting in Spring 2025.
Public universities are also broadening financial aid efforts. The University of Texas System raised its free tuition family income threshold from $65,000 to $100,000 across its nine institutions. Meanwhile, West Virginia University introduced the WVU Guarantee, covering core education costs for in-state undergraduates with a household income of $65,000 or less. The program, effective in fall 2025, applies to WVU Morgantown, WVU Institute of Technology, and WVU Potomac State College.
Beyond Tuition
While tuition-free programs significantly reduce financial burdens, students still face other expenses, including textbooks, housing, transportation, and food. Some institutions are taking a holistic approach to affordability, expanding grants and stipends to cover these costs.
For example, some universities now provide automatic textbook stipends or discounted course materials, while others are increasing need-based grants to cover living expenses. Roosevelt University, in addition to the Roosevelt Pledge, is implementing a pilot program to provide meal plan assistance for students facing food insecurity. Similarly, MIT’s zero parental contribution model ensures that housing and meal plans are included in financial aid calculations.
Implications for College Affordability
As universities expand financial assistance, these programs will be closely watched for their impact on enrollment trends, and student success. Free tuition and need-based aid programs have the potential to not only increase access to higher education but also help students graduate with lower debt burdens, ultimately improving long-term financial stability.
With inflation and rising costs continuing to impact American families, institutional efforts to make college more affordable will remain a critical factor in shaping the future of higher education. By addressing not just tuition but also the broader financial challenges students face, universities are working toward making a college education a possibility for a greater range of students.
