Were Harvard to bring payout to 4.5 percentnext year--a level even more conservative than the20-year average--funds earmarked for financial aidincome would increase roughly $8 million dollarsnext year, or more than $6 million more than undercurrent plans.

That increase would be enough to roughly matchthe amount Princeton, Yale or Stanford will spendon their students next year, without taking moneyfrom any other program or forcing FAS to pump infunds not already restricted to use for aid.

So What's the Catch?

The numbers work in principle, but it takesmore than numbers to pry open Harvard's burgeoningwallet.

According to Ann E. Berman, associate dean offinance for FAS, the probability that Harvard'sgoverning body, the Corporation, will revise itsplans to call for a 4.5 percent payout next yearis "almost nil."

"It's just not a prudent policy," she said.

University Vice President for Finance ElizabethC. "Beppie" Huidekoper, said the University willalways be cautious about enormous surges in payoutbecause its first priority is keeping itsmulti-billion nest egg intact for posterity.

"When one gives to the endowment, you aretrusting Harvard to manage those resources so thatthey will generate adequate funding to keep theactivity that you are giving for funded inperpetuity," Huidekoper said.

She said even in a strongly bullish market, theUniversity's financial policies must remainflexible for any possibility.

"If the market went up by 25 percent, we don'twant the payout to go up by 25 percent the nextyear because the next year, the market might godown by 25 percent, and then you have to takemoney away," she said. "You want to have steadyincreases in payout for operations."

Knowles conceded the College may make moreefforts to reduce student costs if the endowmentgrowth continues at its fast pace.

"If more funds become available, it iscertainly possible that some will go towardsfinancial aid," he said