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Video related to this article is available below.Issue date: 12/11/07 Section: News
Online Update | Penn announces new financial aid policy
By 2009, grants will replace loans in all aid packages
Emily Babay
The University announced a new financial aid policy Dec. 17, launching an initiative that will eliminate loans from all undergraduate financial aid packages within two years.
Beginning in September 2008, undergraduate students with family incomes under $100,000 will receive loan-free packages, according to a University press release. By fall 2009, all undergraduates eligible for financial aid will receive loan-free packages, regardless of income level.
The policy will apply to all eligible undergraduate students, not just incoming freshmen.
Half of the about 4,000 Penn students who receive financial aid have a loan as part of their package. Under Penn's current policy, students with family incomes under $60,000 are eligible for loan-free financial aid packages.
"We have previously addressed the needs of low income and lower middle income families, but now must respond to the needs of our middle and upper middle income families, who are facing the highest levels of debt," Penn President Amy Gutmann said in the press release.
Penn's announcement comes the week after Harvard University and Swarthmore College both announced major financial aid policy changes, with both eliminating loans in all aid packages.
The new aid policy will be funded in large part through funds from the University's current $3.5 billion capital campaign, Gutmann said in the press release.
Beginning in September 2008, undergraduate students with family incomes under $100,000 will receive loan-free packages, according to a University press release. By fall 2009, all undergraduates eligible for financial aid will receive loan-free packages, regardless of income level.
The policy will apply to all eligible undergraduate students, not just incoming freshmen.
Half of the about 4,000 Penn students who receive financial aid have a loan as part of their package. Under Penn's current policy, students with family incomes under $60,000 are eligible for loan-free financial aid packages.
"We have previously addressed the needs of low income and lower middle income families, but now must respond to the needs of our middle and upper middle income families, who are facing the highest levels of debt," Penn President Amy Gutmann said in the press release.
Penn's announcement comes the week after Harvard University and Swarthmore College both announced major financial aid policy changes, with both eliminating loans in all aid packages.
The new aid policy will be funded in large part through funds from the University's current $3.5 billion capital campaign, Gutmann said in the press release.
Viewing Comments 1 - 10 of 19
penn10
posted 12/17/07 @ 12:55 PM EST
fantastic, this is a great step for penn.
Graduating Senior
posted 12/17/07 @ 1:12 PM EST
For the class of '08, this is a slap in the face. Why can't it be retroactive? Because Penn cares more about having fanfare for a Great New Altruistic Program that actually helping it's students. (Continued…)
W. Furman
posted 12/17/07 @ 1:29 PM EST
Graduating Senior-
I am a junior, and I too am disappointed to not be receiving the full force of the new policy (though it is better to get some rather than none), but I am happy for the university and the ease with which future students may be able to attend. (Continued…)
Junior
posted 12/17/07 @ 1:41 PM EST
Graduating Senior,
How retroactive should we make this; should penn just give check to everyone that's ever had to graduate with debt? Give me a break. (Continued…)
AnotherJunior
posted 12/17/07 @ 1:46 PM EST
While it feels bad that I will only benefit from this for one year, this was a step that Penn needed to take in order to move from excellence to eminence. (Continued…)
2010
posted 12/17/07 @ 2:08 PM EST
This is an excellent policy--its the right thing to do and it makes sense.
Its going to help Penn compete for talented middle class kids, who get screwed over by a lot of current financial aid programs. (Continued…)
great news.....but a couple of thoughts.....
posted 12/17/07 @ 8:24 PM EST
........
1. It would be nice if it involved all current students, but if it doesn't, and takes effect in the fall we'll just have to deal with that and be thankful. (Continued…)
int'l student and another graduating senior
posted 12/19/07 @ 11:03 PM EST
What I'd like to know is if this has any bearing on financial aid (or lack thereof) that international students can get. Because if this policy doesn't apply to international students, just as the need-blind nature of admissions doesn't appear to benefit internationals (I'm not kidding, when I applied, there was a note that extremely discouraged applications for financial aid for international applicants), then Penn certainly isn't making great strides towards making good on its commitment to developing its supposedly global outlook. (Continued…)
Sophomore
posted 12/24/07 @ 1:10 PM EST
Why does this seem unfair to the kids who are not on any financial aid? Cross-subsidizing your unprofitable clients with your profitable clients is a terrible business strategy. (Continued…)
Ken W grad
posted 12/25/07 @ 9:28 PM EST
This program flies in the face of pressing for Early Action programs to benefit the those who might be eligible for financial ad, but would be unable to "shop" around with a Early Decision process. (Continued…)
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