When Harvard speaks, America listens. And when the school recently announced a dramatic increase in aid for middle and upper middle income families, many colleges and universities rushed to do the same. But now, some local experts are wondering if lower income families will end up paying the price.
For Berkeley High School Senior Laura Peper, the increase in aid at Harvard has already made a difference. Last week, she wasn't going to apply for admission because her family couldn't afford it, now, she's going to go for it.
"Hopefully other schools that can afford it, that are well endowed will follow it -- knowing there's a gap in the students that can go," said Laura Peper, Berkeley High student.
The new policy means a huge infusion of aid for families making up to $180,000 dollars per year to help them pay Harvard's yearly cost of $45,000 dollars. Harvard hopes the increased aid will allow the school to compete price-wise with flagship public universities, like UC Berkeley. Though some Berkeley students say school choice is not just about the price.
"Diversity is really important to me and there's more of it here, where as at Harvard it's more clean-cut, a lot more standard", said Daicia Allen, U.C. Berkeley student.
Stanford has had no specific response to the move by Harvard, but this year, it increased aid to middle class families by $5 million dollars.
Matthew Reed is a policy analyst at the Project for Student Debt in Berkeley.
"Tuition has been rising faster than inflation and faster then family incomes for many years and financial aid has not been keeping up with a rise in tuition," said Matthew Reed, Project for Student Debt.
Back at Berkeley High School, college counselor Ilene Abrams worries about students from the lower income brackets. She says private schools, with minimal endowments may try to attract more middle class students by increasing merit aid. That's financial assistance based on student achievement -- regardless of income.
"That means the amount of aid available for need-based aid will go down and have a negative impact on low income students," said Ilene Abrams, college advisor.
Abrams says one possible solution can be found in the aftermath of Hurricane Katrina. Back then, rich schools just gave money to help rebuild the devastated colleges.
"It would be great if some of these well endowed schools would donate money to other schools so that their financial aid packages could more meet the need. I do fell that it is a crisis for low income students in terms of affordability of college," said Abrams.
Keep in mind low income students who are accepted at Harvard, Stanford and many other schools with large endowments don't pay any tuition. But some members of Congress don't think that's enough. Lawmakers are considering a bill that would require colleges to spend endowment money to reduce tuition for everyone. Stanford's endowment is more than $17 billion dollars, Harvard's is $35 billion dollars.
