Upper Echelon Universities Discard Student Loans

The cost of higher education continues to grow and athalf the students required to borrow loans which they
a pace well above the inflation rate. The pressure thatmust repay. Thanks to a $3.5 billion fund-raising
these costs is putting on many middle class familiescampaign, Penn will be able to expand their assistance,
has forced students to explore every option to fundthereby eliminating the need for students to come up
their education including taking out government andwith other financing alternatives.
private student loans. Even with scholarships, grantsPenn isn't the only Ivy League university eliminating
and other assistance options included, it isn't uncommonstudent loans as Princeton and Yale have already
for some students to come up short by thousands ofannounced similar initiatives as have other private
dollars each school year.schools including Williams and Amherst. Each school
At Select Colleges, Student Loans Are No Longerhave very large endowments and it is from these
Neededfunds that eligible students will receive their financial
A new trend in college financing may soon relieveassistance.
thousands of families of their heavy burden byWill the trend spread to other colleges? Only if their
replacing student loans with scholarships. According toendowments can cover these expenses. Otherwise,
a report published in the Philadelphia Inquirer, thewe could see the day where a public university
University of Pennsylvania plans on offering financialeducation costs more than obtaining a degree from
aid to all eligible students beginning in 2009. Currently,Harvard or Duke.
the cost to attend Penn is about $46,000 annually with