Penn and Haverford Eliminate Loans for Low-Income Students

The University of Pennsylvania has announced its intention to eliminate loans from all student financial aid packages. In 2008 loans will be eliminated for all students from families with incomes below $100,000. By 2009 loans will be replaced with scholarship grants for all students receiving financial assistance.

At the present time, about 2,000 Penn students each year receive student loans as part of their financial aid packages.

Penn estimates that the new financial aid initiative will add $20 million to its budget. Penn currently spends $90 million on student financial aid.

Haverford College also announced that it was eliminating loans for all incoming students and reducing loans for students already enrolled. Haverford states that the new program will increase its financial aid budget by 25 percent.