Issue date: 1/16/08 Section: News

In an effort to make Penn more affordable for thousands of middle-class families, the University expanded its financial aid policy so that it will eventually allow eligible students to attend college without having to pay back a single loan.

On Dec. 17, the University announced that beginning in fall 2008, student loans will be eliminated from financial aid packages offered to undergraduate students with family incomes under $100,000.

By fall 2009, student loans will be eliminated from all financial aid packages­- regardless of income level.

"This is a proud moment in our institution's 267-year history," Board of Trustees chairman James Riepe said in a University press release.

The expansion, part of University President Amy Gutmann's campaign to make Penn more affordable, will be funded by the anticipated increase in the University's endowment due to the Capital Campaign. The University plans to expand grant-aid spending by $20 million.

"Talented, hardworking young people should not be deterred from pursuing their dreams for fear of being a financial burden to their families," Gutmann said in the press release.

Director of Student Financial Aid Bill Schilling added that loans will still be available for eligible students that choose to borrow money instead of contribute to their aid package via work-study or family contribution.

"With this, students will have a lot more flexibility and be able to graduate with fewer loans-which will give them more freedom down the road," Schilling said.

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