Stanford University will continue considering legacy status in admissions through fall 2026, opting out of state financial aid assistance for students in order to comply with California’s ban on preferential treatment for applicants with alumni or donor ties.
While the university studies a long-term policy, it will maintain its current legacy practice, according to a recent public announcement. The decision places Stanford at the center of the legacy admissions debate as it confronts a $140 million budget shortfall, hundreds of layoffs, and heightened scrutiny of admissions after a 2023 U.S. Supreme Court ruling curbing the use of race as a factor.
“Stanford will continue to study the issue of legacy criteria,” university spokesperson Brad Hayward told this news organization Monday. “As that occurs, we will maintain existing practices and comply with state law by replacing Cal Grant funding with university funding, keeping students’ financial aid whole.”
Cal Grant is a state program that helps eligible students pay for tuition and other educational expenses. Legacy admissions refer to the practice of giving preferential treatment in college admissions to applicants who have family members who previously attended or donated to the same institution.
Hayward said funding to replace Cal Grant would come from “non-state university resources.” The change comes amid the layoff of 363 staff and faculty members across various units announced last month. Despite its wealth and influence, Stanford has signaled financial strain this year, citing federal cuts to research and education funding.
Gov. Gavin Newsom signed AB 1780 last fall. After going into effect this year, it made California the fourth state to enact a ban on legacy and donor preference in admissions – Colorado, Illinois, Maryland and Virginia had similar restrictions already in place.
The state’s ban applies to all colleges and universities receiving state funding, though public universities in California already do not admit students based on legacy or donor parent status.
“In California, everyone should be able to get ahead through merit, skill, and hard work,” Newsom previously said in a statement. “The California Dream shouldn’t be accessible to just a lucky few, which is why we’re opening the door to higher education wide enough for everyone, fairly.”
Prior to the law’s passage, Stanford had the second-highest number of students admitted with legacy or donor ties — 295 out of 2,099 students — behind the University of Southern California’s 1,791 out of 8,094, according to data from former Assemblymember Phil Ting, who authored the legislation.
Colleges may still admit students with alumni or donor ties, but can no longer give them preference in the admissions process. Backers of the ban said the law addresses inequities after the 2023 U.S. Supreme Court decision – which exempted military academies.
Last week, U.S. Department of Education Secretary Linda McMahon directed the department’s education statistics division to start collecting admissions data from higher education institutions to ensure they do not use race-based preferences in their admissions processes.
Stanford said students receiving Cal Grants do not need to take action, as financial aid packages will be automatically adjusted.
The university says its financial aid program offers significant support for low- and middle-income students accepted to study at the university. Families earning less than $100,000 per year pay nothing for tuition, room, and board. The university also covers the full cost of tuition for families with incomes under $150,000. Additionally, the school reports that about 20% of its first-year students are the first in their families to attend college.
Stanford currently has an endowment worth about $37.6 billion.
In fiscal year 2024, it disbursed $1.8 billion from its endowment to fund academic programs and student financial aid, Stanford reported. About 5% of the endowment is spent annually, with roughly $456 million going toward financial aid and 23% supporting faculty salaries, libraries, student services, athletics and research.
The university says more than 75% of the endowment’s annual payout is restricted by donors for specific purposes, such as supporting first-generation college students or designated academic fields.
Aside from continuing legacy admissions, Stanford is also reinstating its standardized testing requirement, ending a pandemic-era pause on requiring SAT or ACT scores for admission.
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