College with "no student loans."
Is it too good to be true?
Here are 25 colleges that offer "no loans" financial aid policies to help undergraduate students pay for school.
What does "no loans" mean?
"No loans" financial aid packages generally seek to replace student loans with grants or scholarships that do not have to be repaid.
Each college or university has its own financial aid policies, so the term may differ across institutions.
"No loans" does not necessarily mean that a college eliminates student loans from financial aid packages. Some universities require a minimum student contribution or part-time employment while others require a parental contribution.
Through "no loans" policies, most colleges aim to cover a family's demonstrated financial need based on completion of the Free Application For Federal Student Aid (FAFSA). Therefore, for some "no loans" financial aid policies, the family income of a student would need to be less than a specific threshold.
According to Make Lemonade, there are over 44 million borrowers who collectively owe more than $1.4 trillion of student loans. With "no loans" financial aid policies, colleges are working to help student loans alleviate their debt burden.
25 Colleges With "No Loans" Policies
While this list is not comprehensive, here are 25 colleges (in alphabetical order) that offer "no loans" financial aid policies for undergraduates. For more information, you can visit the financial aid website of each college:
- This year, Amherst is providing more than $50 million in scholarship aid to 55 percent of the student body.
- In its financial aid packages, Amherst replaced all loans with scholarship grants.
- More than 50% of the Class of 2021 received a Bowdoin Grant.
- For all Brown-packaged financial aid awards, Brown will replace student loans with scholarship funds (that do not have to be repaid) for all returning and incoming undergraduates starting in the 2018-2019 academic year.
- Columbia's need-based aid is in the form of grants and student work only.
- For students with family income less than $60,000 annually and typical assets, parents are not expected to contribute to the cost of attendance.
- Students with a family income less than $60,000 and total assets of less than $100,000 (including primary home equity) will have no parent contribution.
- Students from families with total income of $100,000 or less and possessing typical assets receive free tuition.
- Students with a family income of $60,000 or less and typical assets will have no expected parent contribution.
- Most students graduate debt-free, and Harvard does not expect its students to take out loans as part of financial aid packages.
- Students with a family income from $65,000 to $150,000 will typically contribute from 0-10% of their income.
- For students with a family income less than $60,000, Haverford will not include a loan expectation as a resource before determining eligibility for Haverford Grant funds.
- The University awarded $144 million to undergraduate students in 2016-17, and approximately 45% of undergraduates received a Northwestern University Scholarship.
11. Pomona College
- Students are not required to borrow a loan to meet the cost of attending Pomona.
- Students with a family income less than $65,000 qualify for a grant to cover full tuition, residential college fee, room and board
13. Rice University
- For students with a family income less than $80,000, Rice will 100% of need eligibility without student loans.
- Stanford does not expect students to borrow student loans to meet college costs.
- Scholarship from Stanford is the primary source of funding used to assist students with meeting their educational costs.
- Nearly 60% of the entering class received need-based Swarthmore Scholarship aid.
16. Tufts University
- Students with a family income less than $60,000 will typically receive a financial aid package that includes no student loans.
- Tufts Grants exceeded $70 million in 2015-16 and were by far the largest source of grant aid received by Tufts undergraduates.
- Need-based financial aid involves no loans
- Financial aid is awarded as grants, which do not need to be repaid.
18. University of North Carolina
- Students with a family income below 200% of the federal poverty line (about $48,500 for a family of four) may be eligible for The Carolina Covenant.
19. University of Pennsylvania
- Penn’s Grant-Based Program provides students with a financial aid award (up to financial need) that includes grants and work-study.
- Vanderbilt offers additional grant assistance instead of need-based student loans.
- Vanderbilt's grant assistance does not involve income bands or "cut-offs" that impact or limit eligibility.
21. Washington University-St. Louis
- Students with a family income less than $75,000 receive grants (instead of student loans) that will not have to be repaid.
- Wellesley students with the greatest financial need do not receive student loans.
- Wellesley lowers loan packages by one-third for many other students.
- Most students with a family income less than $60,000 will receive a financial aid package without loans.
- Most students with a family income between $60,000 and $80,000 will receive a reduced-loan package.
24. Williams College
- Students with a family income less than $75,000 and typical assets receive no-loan financial aid packages.
25. Yale University
- Yale does not expect students to take out student loans.
- Yale financial aid awards includes a Yale Scholarship, a parent contribution and a small student contribution.
