Undergraduates with family income below $200k will be tuition-free at MIT

This is a great step in the right direction. I can't speak directly for MIT, but there are issues with how these programs don't apply to parents with small family businesses. My parents had a small business, with my father taking home a salary of $XX,XXX. Duke University used the business assets to determine the EFC (expected family contribution) of literally 90% of the salary. Essentially saying to sell off the family business for the college fund, which was a non-starter.

Small businesses are allegedly the backbone of America, and I feel these tuition support programs overlook this segment of the middle-class.

It’s incredibly difficult to structure these rules in a way that doesn’t discriminate against small businesses while not opening a giant loophole for the rich.

Why is the price you have to pay for something dependent on how much money your parents make? Feels so unfair

In my opinion, you're reasoning about it incorrectly.

What if I said: the price is the same for everyone, but people with less access to money get proportionally more assistance paying that price?