Budget plan underscores Princeton’s commitment to access, affordability and socioeconomic diversity

The trustees of Princeton University have approved projected increases in the budgets for undergraduate financial aid and graduate student support, underscoring the University’s steadfast commitment to access, affordability and socioeconomic diversity, as well as the continued expansion of the University’s undergraduate population.

The undergraduate financial aid budget is projected to increase 8%, to $306 million, and total graduate student support is projected to rise 7%, to $365 million, for 2025-26.

“A Princeton education is a truly transformative experience, and our world-leading financial aid program makes that experience affordable for undergraduate and graduate students from all walks of life,” Provost Jennifer Rexford said.

Princeton’s undergraduate financial aid program, made possible by the University’s endowment and the sustained generosity of alumni and others, is one of the most generous in the country.

Most families with incomes up to $100,000 pay nothing for their undergraduate students to attend Princeton, receiving aid to cover the total cost of attendance, including tuition, housing, food, books and personal expenses. Half of all Princeton students receive aid that covers the full cost of tuition, including most families with incomes up to $200,000.

A quarter of all undergraduates pay nothing to attend, and two-thirds of undergraduates currently receive assistance, including those from families with incomes up to $300,000 and beyond.

In 2025-26, the estimated average grant for undergraduates who receive financial aid will rise by more than $3,000, exceeding $76,000 per year.

Endowment payouts dedicated to financial aid cover almost 70% of the undergraduate financial aid budget and 60% of the University’s overall operating budget.

Princeton is also committed to supporting its graduate students. The 7% increase in total support for 2025-26 includes a 3.2% average increase in graduate fellowship and stipend rates.

For fiscal year 2026, spending on graduate and undergraduate student financial support is expected to show an increase of about 45% over 2022, or $208 million, due to Princeton’s pathbreaking changes in aid methodology, higher education-leading increases in graduate student stipend rates and policy-driven growth of the number of students receiving financial support.

In 2001, Princeton was the first in the country to eliminate loans from undergraduate aid packages, enabling students to graduate debt-free. The University made substantial enhancements to its undergraduate aid program starting in the 2023-24 year, providing even more generous support to students and their families.

In the Class of 2028, 73% of students qualify for financial aid, compared with 52% in the Class of 2008. The percentage of undergraduates eligible for federal Pell grants, restricted to lower-income students, has also risen, from 7% in the Class of 2008 to approximately 24% of the Class of 2028.

Princeton provides financial aid in the form of grants, which do not have to be repaid. It does not require any borrowing, so students can graduate without debt, and there is no expected contribution from student work or summer earnings.

Aid packages are recalculated each year to offset increases in tuition, room, board and other expenses and to account for changes in the family’s financial circumstances. In determining need, Princeton excludes equity in the primary residence and retirement savings, and considers other obligations, such as educational expenses for other children enrolled as undergraduates.

The undergraduate fee package (which includes tuition, room and board) for the 2025-26 academic year will be $86,380. The amount paid to Princeton by an average scholarship recipient is expected to be approximately $10,380.

The University’s average grant increasingly covers more of the total fee package, with the average grant expected to cover nearly 90% of total student charges in 2025-26, compared with 65% of total student charges covered in 2001-02.

While the total size of the 2025-26 operating budget may change due to uncertainty about federally sponsored research funding, which represents almost one-fifth of Princeton’s overall annual spending, the Board of Trustees at their late March meeting approved primary budget parameters and affirmed the University’s unwavering commitment to financial support for students.