As millions of Americans resume student loan payments this month, several institutions are making pivotal changes to their financial aid policies. CNBC reports that nearly two dozen colleges and universities have either already implemented or are planning to introduce “no-loan” programs, thereby eliminating student loans from their financial aid packages.
Lafayette College in Easton, Pennsylvania, is among the institutions to adopt a no-loan approach. The school provides grants to students whose families earn up to $200,000 annually. Recognizing the prohibitive costs often associated with higher education, Lafayette’s president Nicole Hurd affirmed a commitment “to make sure we keep [college] accessible.” Washington University in St. Louis also recently declared its intentions to launch a financial aid program next year, aiming to swap federal loans with scholarships, as reported by KSDK-TV.
Colby College in Waterville, Maine, was ahead of the curve, implementing its own no-loan policy a decade and a half ago. Other esteemed schools joining the no-loan movement include: Amherst College, Duke University, Grinnell College, Harvard College, Massachusetts Institute of Technology, Northwestern University, Princeton University, University of Pennsylvania, Vassar College, Yale University, and more.
Robert Franek, editor in chief at The Princeton Review and author of The Best 389 Colleges, praises the institutions.
“These schools have addressed the primary concern for students and parents regarding accumulating overwhelming debt. They’re conveying to students and their families that they understand their concerns.”
The shift towards no-loan policies is also a strategic move for colleges and universities. By alleviating the burden of student debt, many institutions aim to attract a larger pool of applicants, and a rise in total applications would likely boost the number of students who enroll post-acceptance. Forrest Stuart, vice president for enrollment management at Lafayette College explained the policy’s added benefit.
“Typically, you will see a significant surge in admissions applications. It increases the institution’s visibility, enabling us to assemble a more diverse and dynamic class.”
It is important to note, however, that while these policies can significantly reduce the financial burden of higher education, they do not make college entirely free. Students will bear some costs for textbooks, miscellaneous school fees, and other expenses.
