Harvard University announced Monday it will raise its annual price tag to almost $55,000 while boosting financial aid for undergraduates to record levels.

The total cost of attendance will rise by 3.5 percent, while financial aid will rise 3.6 percent to $172 million.

Since 2007, Harvard has increased financial aid by 78 percent, the announcement said. More than 60 percent of students receive financial assistance from the university, with an average grant of $41,000.