Both Harvard and Yale recently made news for eliminating loans in its aid packages for families earning as much as $180,000 and $200,000 annually, respectively. Now other private schools are beginning to follow suit by replacing student loans with grants for incoming students. These other schools include Duke University, Dartmouth College, California Institute of Technology, Emory University, Tufts University and Williams College, and others. For example, Columbia University is eliminating student loans for students whose families earn less than $50,000 annually. Harvard and Princeton have removed home equity from their equations for establishing need. In fact, the aid is taking many different forms including: tuition freezes, fee freezes, and more.
Obviously, the schools with the largest endowments can easily afford to be the most generous. For example, Harvard is apparently the world’s richest university, with an endowment of $35 billion.
Sadly, tuition and fees for some of these schools exceed $40,000-$50,000 per year and is constantly increasing. Although most of the changes are more modest at best, they may still be worth investigating to prevent a student you know from graduating with astronomical amounts of debt.
Copyright 2008, Roshawn Watson, Pharm.D. All Rights Reserved.
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