NYU To Increase Financial Aid

While New York University’s (NYU) most famous freshmen—teen billionaires and pop culture phenomena Mary-Kate and Ashley Olsen—likely had no financial worries in matriculating at the private university last year, many of their peers anxiously faced high tuition and looming debts. However, NYU’s financial aid may give students of all socioeconomic backgrounds—not just those raised on “Full House”—a chance at higher education.

An eight-year fundraising campaign at NYU—started in 2001—aims to raise $2.5 billion to close the gap between its current endowment of $1.5 billion and the large endowments of competitive peer private institutions such as Harvard. Six-hundred and fifty million dollars of this capital campaign will be allocated to increase financial aid.

NYU joins other prestigious private universities including Harvard, Yale, and Princeton in implementing more generous financial aid packages to level the playing field for economically disadvantaged students.

In March 2004, Harvard increased assistance for students from families with incomes of under $60,000, and those who make under $40,000 will not be expected to contribute to tuition costs at all.

In September, NYU will increase its financial aid 18 percent from two years ago and will give $106.6 million in scholarship money.

“The campaign has raised $200 million,” said Debra La Morte, NYU’s senior vice president for development and alumni relations. “We are extremely hopeful about reaching our goal.”

The average cost for an NYU undergraduate education last year was $44,830, and the Tisch School of the Arts cost $47,920.

NYU was recently ranked by the test prep and admissions service, The Princeton Review, as the top “dream college” of students and received 33,683 applications for freshman admission this year—more than any other private college or university in the U.S.

But high tuition costs can make it difficult to turn academic dreams into a financial reality.

“I think that the campaign and any additional dollars raised will have a tremendously positive impact on our students and quality of life at NYU,” said La Morte. “At this point, some of our students have two or three jobs because they want to be here so badly. If we can help eliminate some of that burden, their educational experience will be enhanced greatly.”

Currently about two-thirds of NYU’s 20,212 undergraduates are receiving university financial aid.

La Morte said that while financial aid is a main priority of the campaign, the university will also use the funds to recruit new faculty and create capital improvements.

Harvard’s $22.6 billion endowment is the largest of any college or university, enabling it to provide attractive financial aid packages.

Sally Donahue, director of financial aid for the College, wrote in an e-mail that the office is confident in the effectiveness of the Harvard Financial Aid Initiative (HFAI).

“The Class of 2009 was recently selected from a record applicant pool of 22,796, and it looks like close to 80 percent of those we admitted have chosen to join us in the fall,” she wrote. “Over 290 of these students will benefit from the Harvard Financial Aid Initiative.”

Harvard is awarding a record $84.6 million in scholarships for freshmen this year, with an average financial aid package of $30,000.

—Staff writer Kristina M. Moore can be reached at moore2@fas.harvard.edu.