The University announced that tuition would be free for students whose families earn less than $125,000 a year, increasing the amount from $100,000. In addition to that, there will be "zero parental contribution" toward tuition or room or board for parents with annual incomes below $65,000.
"Our highest priority is that Stanford remain affordable and accessible to the most talented students, regardless of their financial circumstances," Provost John Etchemendy said in a statement.
"This expansion of the financial aid program is a demonstration of Stanford's commitment to access for outstanding students from all backgrounds – including not only those from the lowest socioeconomic status, but also middle- and upper-middle-class families who need our assistance as well," Karen Cooper, associate dean and director of financial aid, said.
Families with incomes at higher income levels, typically around $225,000, may also qualify for financial assistance, especially if more than one family member is enrolled in College.
The huge tuition break aside, students won't get off completely scot-free. They will still be expected to contribute at least $5,000 per year from earnings summer income, savings or part-time work during the School year.
So far, Stanford's financial aid system seems to be working well for students - even before the changes made this year. Currently, 77 percent of Stanford undergraduates graduate with no student debt. Considering that it costs about $65,000 a year to attend the university, those numbers are impressive.