Middle-class parents rejoiced when Harvard University announced that it would only charge up to 10% of a family's income (those making between $60 up to $180K) for tuition.
Not to be outdone, Yale University today announced it would cut help middle and lower-middle class students as well, by cutting tuition by 50% for families making less than $120,000. The plan calls for increasing financial aid budget by more than $24 million as well, and holding next year's inevitable tuition hike to 2.2%.

Tuition, books, room and board for an undergraduate today costs about $45K a year.

Yale President Richard C. Levin said the school wants to allow students to "make the most of Yale -- academically and beyond -- without worrying about excessive work hours or debt."

The vaunted Ivy League school becomes the latest in a line of elite universities, starting with Princeton in 2001, that has slashed costs and done away with student loans in lieu of grants.

Of course, there are critics who say these policies only benefit the upper-middle class. But then families making less than $60K a year don't pay any tuition to Harvard or Yale. Good luck getting in without hours of tutoring and lots and lots of extracurricular activities, though.