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Feb 23

Written by: kmurphy
Tuesday, February 23, 2010 

Starting in 2007 more than 30 elite private colleges adopted policies that replaced loans from financial aid packages with grants, in an effort to eliminate student debt upon graduation. It wasn't entirely altruistic though, as colleges were scrambling to put out competitive financial aid packages to families that were quick to shop around. It was and continues to be a wonderful option for those students who qualify for need-based aid but college may regret their decision given the difficult economic times, and how hard some schools' endowments have been hit.

This past week two colleges announced that they will no longer be able to continue with this policy.  Dartmouth College in New Hampshire and Williams College in Massachusetts both are rolling back this no loan policy in an effort to save millions of dollars.  Williams has stated that they can no longer afford the policy as their endowment has been hit hard.  Their policy will take effect September 2011. Yet another sign of the times. 

To read which colleges are still participating, visit The Project on Student Debt.

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