A group of 50 colleges (and this number is growing) are pledging to do fund student financial needs through grants and work-study programs rather than with loans. Limiting loans with the “Project on Student Debt” will help in the efforts of reducing graduates debt amounts leaving them in large financial debt when leaving school.
With the economy in poor standing, this affected all schools – particularly private schools, resulting in tuition hikes and budget hikes.
With student aid, few students will pay the full tuition price for example. Financial aid is defined as the total cost of attendance (tuition, books, room & board) minus a family’s expected contribution. Public colleges threshold for receiving need-based aid is typically $60,000 or less.
For example according to money.cnn.com:
Full estimated tuition price at Harvard per year is $50,000. A family with an income of $120,000 can expect to pay after Harvard’s financial aid $16,000 per year. This same family would pay an estimated $15,800 at Yale and $34,000 at Stanford after receiving financial aid help.
The financial commitment to attend college may be intimidating. Researching your options for financial aid in addition to merit-based scholarships and grants can be a great way to lessen the financial burden. A complete list of schools participating with the “no loan” financial aid packages can be found here: www.ProjectOnStudentDebt.org .