<p>I’ve heard of private schools reducing their tuition for students with demonstrated need. Is this like an actual discount or is it actually a grant to make tuition more manageable?</p>
<p>Some publics give tuition reductions for OOSers with high stats (e.g. UT Austin grants instate tuition to OOSers who win merit s’ships)</p>
<p>But in the context of private schools, some private schools give institutional grant aid to students with demonstrated aid. The amount of grant aid will depend on the school, as some meet 100% of need while other barely have any grant aid.</p>
<p>They don’t reduce their tuition. They give additional aid. If you are fortunate enough to get into Harvard, and your family has income of less than $60,000 per year, then you will get your education for free, including room and board. However, the Government will not be so happy about Harvard being so generous, and will tax you on some of the aid.</p>
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Heck the govt taxes you on the need based aid *they themselves *give you. Most of my daughter’s need based aid is federal, and as her merit scholarship from her school includes a full tuition waiver, the federal grant aid goes mostly toward non tuition/fees costs so ends up being taxable. Still better than not having it though.</p>