Stanford University is jumping into the competitive world of deep discounting.

Tapping into its burgeoning endowment to make college more affordable, Stanford announced Wednesday that beginning next year it will offer free tuition - worth $36,000 a year - to middle-class students whose parents make less than $100,000 a year.

Joining a trend started by other elite universities such Harvard, Princeton and Yale, Stanford is also eliminating student loans.

The move will make Stanford a better value than UC-Berkeley and San Jose State University for many students.

For low-income youth, Stanford will pick up almost the entire tab for tuition, room and board - a $47,000 value. Even wealthy families may get a break: While the value of a home is still taken into consideration, it will play a smaller role than before.

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