More Schools Get Rid of Student Loans

Recent months have seen several colleges and universities retool their financial aid practices so that their students will graduate debt free. Princeton began the no-loan movement in 2001, and some of the wealthiest universities were quick to follow the example. Recently, many smaller colleges have announced the end of loans beginning in the 2008 - 2009 academic year. Haverford, Bowdoin, Colby, and Williams are all shifting to loan-free financial aid packages.

Do the actions of these elite schools represent a national trend in financial aid? Probably not. A Colby press release makes the issue clear -- even for this small school, the elimination of loans carries a $1.5 million annual price tag. The majority of schools in the country simply can’t afford that kind of cut into their operating budgets. Also, with the current weak dollar and stumbling stock market, colleges are likely to feel less generous with their endowment dollars.

photo by Joshua Davis / Flickr