 "MIT goes tuition-free for families earning below $200k in 2025: Details")
Starting next academic session, undergraduates from families with annual incomes below $200,000 can expect tuition-free education at the Massachusetts Institute of Technology (MIT). The move is likely to make higher education more accessible to a significant portion of US households. The institute made the announcement on late Wednesday evening, sharing that currently, 80 per cent of families fall under this income threshold.
The institute said families earning less than $100,000 annually will not have to pay any cost of attendance, which includes tuition, housing, dining, fees, and allowances for books and personal expenses.
This effectively raises the cap for full financial coverage to $100,000 from $75,000, and the tuition-free threshold to $200,000 from $140,000.
How much does it cost to attend MIT?
College tuition costs in the US vary significantly, with average annual tuition fees for in-state public universities at around $9,400 and private universities exceeding $37,000. Including additional expenses like housing and books, the total annual cost can surpass $54,000 at private institutions, according to 2024 student debt data shared by Investopedia.
According to MIT’s Student Financial Services, attending the institute as an undergraduate without financial aid cost approximately $85,960 for the 2024–2025 academic year. This includes $61,990 for tuition, $13,060 for housing, $7,220 for food, $910 for books and supplies, $2,374 for personal expenses, and a $406 ‘student life fee’.
Last year, the median annual cost for an MIT undergraduate receiving financial aid was $12,938, which allowed 87 per cent of the Class of 2024 to graduate debt-free. Those who borrowed had a median debt of $14,844, with graduates reporting an average starting salary of $126,438.
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In comparison, the average in-state cost for public universities, including housing and living expenses is around $27,146 annually.
How much financial aid with MIT offer in 2025?
Financial coverage in MIT for academic year 2025 will be as follows:
- Families earning under $100,000 will pay nothing for attendance.
- Families earning $100,000–$200,000 will contribute on a sliding scale, with a maximum cost - approximating $23,970 (covering housing, dining, fees, and personal expenses).
- For families earning above $200,000, need-based aid may still apply depending on unique circumstances.
MIT does not grant any admission advantages to children of alumni or donor, focusing on merit-based admission, the institute said.
MIT has one of the lowest acceptance rates
While MIT’s new financial aid programme will undoubtedly come as a relief for many households, it’s important to point out that the institute has one the lowest acceptance rates globally.
Known as a global leader in science, technology, engineering and mathematics (STEM), MIT’s acceptance rate for the 2023-24 academic year was exceptionally low at just 5 per cent, with ‘early action’ admitting 5.7 per cent of applicants and ‘regular action’ just 2.5 per cent.
This places MIT among the most selective institutions globally, alongside Harvard (3.4 per cent) and Stanford (3.9 per cent). In comparison, many other US universities have acceptance rates exceeding 20-50 per cent.
The application process itself includes submitting high school transcripts, standardised test scores (SAT/ACT), letters of recommendation, and personal essays.
With its rigorous admissions process, MIT ensures that the students who receive its financial aid are among the brightest and most likely to excel both academically and, later, professionally.
Student debt in the US more than $1.6 trillion
This financial aid programme addresses the pressing issue of student debt in the US, which surpassed $1.6 trillion in 2020, and according to some media reports, this reached over $1.7 trillion in 2023. It is also one of the fastest growing debt in the US and only second to the mortgage debt, according to a report by the Pew Research Center.
Are MIT students able to repay student debt?
Despite the bleak outlook, Investopedia states that around 87 per cent of students from institutions like MIT graduate debt-free or with manageable debt due to these financial aid programmes. This is also because many graduates are able to secure high-paying jobs, particularly in STEM fields. However, those in lower-paying industries struggle with repayments.
MIT’s Committee on Undergraduate Admissions and Financial Aid has said that it is still reviewing policies to ensure accessibility for all students and the current changes are just the first steps of these recommendations.