Ray of hope? Top college commences with middle-class tuition cap

Ray of hope? Top college commences with middle-class tuition cap
Middle-class families are quickly being priced out of the top universities. But a bold new program at the University of California at Berkeley -- limiting the total costs for families with modest incomes to 15% of earnings -- offers a ray of hope. | <a href=http://www.investmentnews.com/apps/pbcs.dll/gallery?Site=CI&amp;Date=20110711&amp;Category=FREE&amp;ArtNo=711009999&amp;Ref=PH&amp;Params=Itemnr=1>The most expensive state schools &amp;raquo;</a> <a href=http://www.investmentnews.com/apps/pbcs.dll/gallery?Site=CI&amp;Date=20111117&amp;Category=FREE&amp;ArtNo=111709999&amp;Ref=PH>Top-rated 529 plans &amp;raquo;</a>
JUL 11, 2011
By  John Goff
The University of California, Berkeley, is offering a new financial-aid program to help families whose gross annual income is $80,000 to $140,000 amid tuition increases and state funding cuts. The contribution those families make toward the annual cost -- including tuition, fees and expenses, room, board and books - - would be capped at 15 percent of their earnings, according to a statement today. Berkeley, one of the most selective public universities in the U.S., joined some of the wealthiest private colleges, including Harvard University and Amherst College, in enhancing financial-aid plans for middle-income families. Williams College and Dartmouth College in 2010 scaled back their “no-loan” programs as their endowment values fell. Berkeley said its plan is a response to the state's high cost of living, the challenges faced by families in the income range and rising tuitions. RELATED ITEM The most expensive state schools » “We see early signs that middle-income families who cannot access existing assistance programs are straining to meet college costs,” Chancellor Robert Birgeneau said in the statement. “As a public institution, we feel strongly that we need to sustain and expand access across the socio-economic spectrum.” Financial aid awards through Berkeley's Middle Class Access Plan will begin in the 2012-13 school year. The program applies to domestic undergraduate students, including freshmen who will begin in August. The cost for the next academic year will be $10 million to $12 million, and funding is expected to come from donations and an increasing number of students paying non-resident tuition, according to the statement. State money won't be used. RELATED ITEM States with the best 529 plans » The assistance comes amid cuts and tuition increases. The University of California's state funding has been reduced 28 percent, or by almost $1 billion, since 2007-2008. Total tuition and fees for in-state undergraduates rose to $13,218 in 2011-12 from $7,517 in 2007-08, an increase of 76 percent, according to Dianne Klein, a spokeswoman for the office of the president in Oakland. For non-resident undergraduates, tuition and fees increased to $36,096 from $27,137 in the same time period, up 33 percent. The current cost of attendance at Berkeley for state residents is an average of $32,634 per year for students living on campus, while non-residents pay an additional $22,878 annually, according to the statement. Berkeley counts nine current faculty members with Nobel Prizes in physics, economics or chemistry and 28 alumni who have received the prize, according to the school's website. The most recent, Saul Perlmutter's in physics, was announced in October. --Bloomberg

Latest News

The power of cultivating personal connections
The power of cultivating personal connections

Relationships are key to our business but advisors are often slow to engage in specific activities designed to foster them.

A variety of succession options
A variety of succession options

Whichever path you go down, act now while you're still in control.

'I’ll never recommend bitcoin,' advisor insists
'I’ll never recommend bitcoin,' advisor insists

Pro-bitcoin professionals, however, say the cryptocurrency has ushered in change.

LPL raises target for advisors’ bonuses for first time in a decade
LPL raises target for advisors’ bonuses for first time in a decade

“LPL has evolved significantly over the last decade and still wants to scale up,” says one industry executive.

What do older Americans have to say about long-term care?
What do older Americans have to say about long-term care?

Survey findings from the Nationwide Retirement Institute offers pearls of planning wisdom from 60- to 65-year-olds, as well as insights into concerns.

SPONSORED The future of prospecting: Say goodbye to cold calls and hello to smart connections

Streamline your outreach with Aidentified's AI-driven solutions

SPONSORED A bumpy start to autumn but more positives ahead

This season’s market volatility: Positioning for rate relief, income growth and the AI rebound