Winter 2009
Provost reaffirms financial aid increase
Provost John Etchemendy has reaffirmed Stanford’s commitment to the enhanced financial aid package announced last year, despite challenges posed by the economic downturn.
In February 2008, Stanford announced the largest increase in its history in undergraduate financial aid. Under the new program, parents with incomes of less than $100,000 are no longer expected to pay tuition. Parents with incomes of less than $60,000 are not expected to pay tuition or contribute to the costs of room, board and other expenses.
Etchemendy recently announced that projected shortfalls in the university’s investment income, combined with decreases in sponsored research, will require reductions to the part of the budget that pays faculty and staff salaries and central administrative operations.
Despite the shortfalls, Etchemendy has reaffirmed that the university will honor its financial aid commitment to students and their families. In fact, he anticipates the demand on university financial aid will actually increase.
“When things tighten in the economy, our financial aid bill goes up because we guarantee enough financial aid for admitted domestic students to allow them to attend Stanford,” Etchemendy said. “If a student’s family financial situation deteriorates, we fill in the difference. We will absolutely keep our commitment to provide that aid. The brightest students should be able to continue to attend Stanford regardless of their ability to pay.”
Etchemendy expects to reduce the budget by approximately 10 percent over the next two years. In addition, the university’s capital plan will be slowed, and any salary increase programs will be modest.
See President Hennessy’s letter about Stanford’s finances at http://parents.stanford.edu/newsletter/1108/letter.html.
