&gt;Harvard does this to maintain its rankings not because they&#x27;re operating a charity<p>I disagree. I&#x27;m not saying that the tax exemptions are the best or justified or anything, but Harvard has consistently been one of a few leaders in financial aid, dragging other schools with them. Harvard could have excellent rankings regardless of financial aid, but provides great financial aid to get the best students. When such a small fraction of the money comes from tuition, it just doesn&#x27;t make sense to try to squeeze every last penny out of tuition and force less wealthy students out in the process.