Harvard announced on Monday that undergraduate tuition will be free for students of families who make annual incomes of $200,000 or less in a move to make the prestigious institution “affordable to more students than ever.”

The university will also make schooling completely free for students from families with annual incomes of $100,000 or less, covering tuition, food, housing, health insurance and travel costs. 

The new expansion of financial aid will begin in the 2025-26 academic year. 

“Putting Harvard within financial reach for more individuals widens the array of backgrounds, experiences, and perspectives that all of our students encounter, fostering their intellectual and personal growth,” Harvard University President Alan M. Garber said in a press release. “By bringing people of outstanding promise together to learn with and from one another, we truly realize the tremendous potential of the University.”

According to the release, the aid expansion will “enable approximately 86% of U.S. families to qualify for Harvard College’s financial aid. “

Students with an annual family income of $100,000 and below will also receive a $2,000 start-up grant in their first year and a $2,000 launch grant in their junior year to “help support the transition beyond Harvard.”

Meanwhile, students with family incomes of $200,000 or less will receive free tuition and additional financial aid for billed expenses. 

Since the launch of the Harvard Financial Aid Initiative in 2004, the university has expanded its threshold to cover tuition, food, and housing costs four times. Currently, 55% of undergraduates receive financial aid, and their families paid an average of $15,700 for the 2023-24 year. 

“We know the most talented students come from different socioeconomic backgrounds and experiences, from every state and around the globe,” William R. Fitzsimmons, Harvard College’s dean of admissions and financial aid, said in a statement. “Our financial aid is critical to ensuring that these students know Harvard College is a place where they can be part of a vibrant learning community strengthened by their presence and participation.”

Other schools have also expanded their financial aid programs to accommodate lower and middle-class families. 

In November, the University of Texas System announced it would expand its free tuition program for lower-income families to include all families making $100,000 or less a year. The Massachusetts Institute of Technology also announced last year it would eliminate tuition costs for undergraduate students whose families make less than $200,000.