In a nod to the rising cost of college tuition and the burden of massive student loan debt on graduates, a growing number of universities are stepping up with “no-loan” aid pledges.
More than 50 colleges — including elite private schools and flagship state universities in Virginia and Maryland — have eliminated or capped loans in their financial aid portfolios for some or all students, promising enough aid in grants and work-study to cover most of the gap between what they charge and what each student can afford to pay.
At a handful of private universities with sizable endowments, including Princeton, Harvard and the University of Pennsylvania, the goal is quite literally to eliminate loan debt for most graduating seniors.
“It’s going down, and it’s going down dramatically,” said Amy Gutmann, president of Penn. “A typical family earning $90,000 a year attends Penn tuition-free. A typical family earning $40,000 a year attends Penn with tuition, room and board covered.”