A Debt Free College

Student loans are seen by many as just “one of those things” which constantly deter lower income students from attending the college of their choice or from attending college at all.

Relief may be on the way as many colleges are recognizing the need for change and are taking appropriate steps to implement it. Many colleges are doing away with student loans and replacing them with grants and scholarships directed at low income families. What is even more surprising are the colleges making this significant change.

The Ivy Leagues schools like Harvard and Yale are leading the pack. There are a total of 50 universities participating in the transition from financial aid programs based on loans to one that is based primarily on student grants and scholarships. Now, this will not mean a free ride for students but these Universities are looking to lessen the financial burden placed on their students.

The reason these universities are able to do this is because of the endowment that each has. By tapping into their endowment they are able to provide students with an alternative to loans. Since these universities are focused on lower income families the amount of their contribution towards the education can vary. For many the contribution will be between 10% of their income to as low as 0%.

There are several reasons why these universities are doing away with loans. A top reason is that they finally realize that many low income students are scared away by loans and are therefore not attending a college at all. The other is that many claim that the United States has fallen drastically behind in education when compared to other countries and so these colleges are hoping to change that fact.

More universities are expected to join Harvard which is causing many students a reason to celebrate. Experts are saying that for further reform, colleges, congress, and families need to step up and take action.

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