Provost Bill Lenhart’s recent letter on changes in financial aid (hat tip to EphNotes) is a model of clarity. Read the whole thing but note this part:

Until two years ago there was no limit to the amount of home equity taken into account, though financial aid officers could use discretion to reduce it when doing so seemed to treat a family more fairly. This might be when a family long ago acquired a home in a market that has since boomed or when a family’s home equity is the only form of retirement savings.

Two years ago we set a limit on how much home equity would be considered at 2.4 times parent income, though aid officers still could make adjustments in circumstances that called for them. Last year we reduced this to 2 times parent income.

We’ve decided this spring to reduce it further to 1.2 times, with discretion to make adjustments when called for. This is the level suggested by financial aid directors at private colleges and universities that practice need-blind admissions, who meet to work toward a common understanding of how to measure financial need.

This change goes into effect in the coming academic year for students in all four classes. For returning students it will be reflected in the aid awards mailed this summer. This latest move will cost the College an estimated $800,000 and affect about 320 Williams families.

As Lenhart hints, almost all of this is driven, not by Morty and the Trustees suddenly realizing that rich families need a break, but by competition from other schools. Williams wants the students who it accepts to choose it and not some other school. Since those schools are lowering prices for the best students, Williams has no choice but to follow. Isn’t competition cool?

I suspect that the phrase “financial aid directors at private colleges and universities that practice need-blind admissions” is an oblique reference to our friends in the 568 group. Classic post here.

The Record really ought to do a story on financial aid at Williams, specifically how many “adjustments” are made and for whom? If you call up the Financial Aid Office in April and claim that your “circumstances” are special, what happens? Does Paul Boyer just say, “No problem! Your expected family contribution is cut in half.” Does he want to know if you have been accepted to other schools? Does he ask you to send him the details of their offers? I have heard that some bargaining and/or offer-matching goes on, but the Record ought to tell us some stories.

EphBlog’s Advice: If you want to go to Williams and you are either very poor or very rich, then apply early decision. Your financial aid package is highly unlikely to be affected by whether or not you are accepted at other schools. If you are in the great “middle class” — roughly family income of $60,000 to $250,000 — and you want to minimize your college costs, then apply regular decision to many schools. Your odds of getting in to Williams are probably a little lower (unless you have a hook) and your leverage in negotiating some “adjustments” is much higher.

Do any readers have experience with negotiating with the Financial Aid Office at Williams? Tell us your stories.