The Cost of Prestige: What’s Behind Harvard’s Ever-Rising Price Tag?

This blog post explores why the cost of attending Harvard has more than doubled over the past 20 years, significantly outpacing inflation. While the prestige of Harvard remains undiminished, the ever-increasing price tag raises important questions about whether the investment is still worthwhile for prospective students. We'll take an analytical look at the numbers and trends behind Harvard's rising costs: what's behind the ever-rising price tag of a Harvard education and how do these costs impact the value and accessibility of a Harvard education?

For many high school students with exceptional college aspirations, Harvard University represents an amazing destination, even among the other Ivy League schools, not to mention many other alternative US colleges and universities. We know from the experiences of our own co-founders, team members, and many of our students, that attending a world-leading university can truly unlock exceptional, life-transforming opportunities.

Yet behind the grandeur of Harvard's ivy-covered walls are some pressing concerns we want to explore with our readers.

In this blog post — the first of four in a series on Harvard — we’ll drill down on the ever-rising cost of attending Harvard (vs. what Harvard is offering in return). Subsequent posts will look at Harvard's grade inflation and its impact on academic rigor, concerns about academic freedom at Harvard, and whether attending Harvard is truly worth it.

In this first post, you’ll discover just how much the cost of a Harvard education has risen over the past twenty years, what’s behind the rising costs, and the impact on accessibility and the value of a Harvard degree.

Spoiler alert — you might be surprised at how much costs have risen at Harvard vs. what the school is delivering in return, but we’ll try to provide some nuance and context so you can put these critical insights into perspective. Hopefully, a closer look at rising tuition and room and board costs will help you decide if Harvard is the right school for your college list!

Then, stay tuned for subsequent posts with more critical insights about Harvard, including the enduring question “Is Harvard worth it?”…

The Cost of Prestige: Tuition Trends Over 20 Years

While Harvard is one of the world’s most respected universities, the cost of attending Harvard has more than doubled in the last 20 years, so it’s worth pausing to ask why a Harvard education, as special as it may be, has to cost so much today.

In 2004, the total annual cost, including tuition and room & board, was around $38,000. By 2024, this figure had ballooned to $79,450 — an average rate of steady increases of about 3.5% year over year for twenty years.

This growth rate is significantly higher than the average rate of inflation in the United States, which was about 2.8% annually from 2014 to 2023. Outpacing inflation, Harvard's rising costs clearly make it harder to go to Harvard, placing a significant, and growing, financial burden on students and their families.

By the Numbers: 20-Year Snapshot of Cost Increases

• Cost of Attendance Has Doubled: The approximate cost of attending Harvard for four years as an undergraduate has increased from $152,000 to $307,000. This means the cost has doubled in 20 years, growing at about 4% annually on average, almost double the rate of inflation.
• A Growing Endowment: Harvard’s endowment has slightly more than doubled over the past 20 years, also increasing at about double the rate of inflation, but not seeming to have much impact when it comes to containing the costs students and families need to bear to attend Harvard.
• Increased Financial Aid: Scholarship support has increased from $80 million to $181 million over the past 20 years — an increase of 126% that demonstrates commitments to access for those qualified applicants with less financial resources. However, growth in financial aid giving over the past decade has only been about 33%.
• Harvard Is Not Serving More Students: Despite costs rising faster than inflation, the endowment doubling, and historically low admission rates, Harvard isn’t showing much commitment to serving more students. In fact, undergraduate enrollment has remained roughly flat over the past twenty years, increasing from 6,600 undergraduates in 2004 to 7,200 in 2024, representing an average annual increase of just 0.3%. In recent years Harvard's overall acceptance rate has dropped to 4% or less, with the Regular Decision acceptance rate falling below 3% — making for a very restrictive and hyper-competitive admissions environment.
• Faculty Hiring Is Very Modest: Harvard’s faculty has grown only modestly, from 1,400 faculty in 2004 to 1,500 in 2024, a meager annual growth rate of 0.5%. By contrast, administrative hiring has increased at about three times this rate over the same twenty-year period.

Cost of Tuition vs. Cost of Room & Board

But what about tuition vs. the cost of room and board?

• Which of these major cost factors is most impacting the overall price of attending Harvard?
• Is it possible that the rising cost of room and board, not tuition increases, is most to blame for the growing cost burden of attending Harvard?

The fact is, tuition and room & board costs have risen  pretty much at equal rates during the past ten years. Tuition increased by about 40%, room & board costs 42%. The 42% increase in the cost to students and families for room & board also stands in stark contrast to the  much lower 20% increase in overall occupancy expenses paid by the school.

The table below provides a detailed picture of year-over-year increases for tuition, room & board, and total costs from 2013 to 2024, with rates for 1990 and 2000 providing additional benchmarks for reference:

Far exceeding the rate of inflation, yet still rising steadily and predictably year over year, increasing rates for both tuition and room and board seem hard to justify — even more so for an institution whose mission is to make a top-flight education accessible and cost-worthy to as many eligible applicants as possible.

A Counterbalance: Increased Financial Aid

While the cost of attending Harvard has increased significantly, the university has also made strides in expanding financial aid, particularly need-based aid. Over the past 20 years, Harvard has increased its spending on scholarships from $80 million to $181 million — an increase of 126%. 

This growth in financial aid has made Harvard more accessible to low- and middle-income families. Today, families earning less than $85,000 per year pay nothing for their student's education, while families earning between $85,000 and $150,000 pay no more than 10% of their income.

The commitment to need-based aid seems in line with efforts to increase access and diversity at top schools — to ensure talented students from all economic backgrounds have the opportunity to attend the kinds of world-class institutions where graduates often go on to serve in top leadership roles, in both the public and private sectors.

Yet, despite this increased aid, the ever-rising cost of attending Harvard still poses challenges for many families, particularly those caught in the financial "middle ground" — families earning between $150,000 and $250,000 that are neither ineligible for the most generous aid packages nor readily able to afford the expected family and student contributions.

This potential financial dilemma may leave many prospective students wondering, "Is Harvard affordable for my family?" Understanding the available financial aid options is key to answering this question and something we encourage students to research. One way to get started is by using planning calculators — on Harvard’s website or on a free platform such as MyinTuition.org. It's also a good idea to seek guidance from a college counselor at your high school or from a specialized Crimson Education admissions strategist.

Balancing Prestige and Accessibility

The prestige of attending Harvard comes at a growing cost, but the university's commitment to need-based aid has helped alleviate some of this burden for lower-income families. As the cost of attendance rises, students also have to wonder where their family’s hard-earned money is going…

• Why are room and board costs rising 3% to 4% annually, often exceeding the rate of inflation?
• Why has Harvard’s faculty hardly grown from 2004 to 2024, during the same period that administrative payroll has grown by more than 40%?
• Why are costs increasing faster than inflation even as Harvard only makes room for a very small number of additional students?

All of this leads prospective students and their families to wonder if Harvard is still committed to its core educational mission. Is Harvard aligning its costs, investments, and governance priorities in ways that reflect a desire to maintain its reputation as a world-class institution? Is it living up to its promise of promoting value, equity, and accessibility?

Despite the high cost, the potential benefits of attending a school as renowned as Harvard can be substantial — benefits in the form of faculty renown, international recognition, alumni and industry connections, among others — can be substantial. This fact should not be overlooked.

For those considering Harvard after high school, it's important not to focus on the price tag alone, but consider what we’ve explored in this post in the larger context of your individual preferences, goals, and aspirations — without forgetting the many exceptional opportunities motivated students can take advantage of at a school such as Harvard.

For many families, these larger considerations should also include Harvard’s not insignificant need-based financial aid offerings. Need-based scholarships can make the dream of attending a school as prestigious as Harvard a reality, even for students from disadvantaged or less affluent economic backgrounds.

Final Thoughts

The rising cost of attending Harvard is a complex issue shaped by various factors, from inflation to increased administrative expenses. While financial aid has expanded, the growing price tag still raises concerns about accessibility. 

As prospective students weigh their options, it's crucial to consider both the financial challenges and the unique opportunities that Harvard offers. The dream of attending a prestigious institution like Harvard is still within reach for many, thanks to the availability of need-based aid, but careful planning and consideration are more important than ever. 

If you’re planning to apply soon, or you want to start early making the right moves to be competitive for Harvard or a similar Ivy League or Ivy Plus university, Crimson Education can get you on the right track. We’ll connect you with team members specialized in each component of your application journey and our strategists are experts at ensuring your passions, goals, and interests guide the entire application process. 

So why wait?...

 If you’re up to the challenge, we’re here to help! 

Reach out today to schedule your free feedback session. We can't wait to connect you with a well-matched strategist ready to hear about your toughest decision points, offer suggestions for your best next steps, and answer questions you may have about Crimson’s highly personalized, results-driven college planning and admissions services.

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