Amherst College Eliminates Loans
Posted on July 25th, 2007
(Source: Amherst College)
Princeton did it, and now Amherst is following suit. Starting in fall '08, the college will not include loans in its financial aid packages. Instead, it will meet all demonstrated need through grants.
From a campus press release:
Amherst College's trustees have voted to replace all loans with scholarships in its financial aid packages beginning in the 2008-09 academic year. In 1999, Amherst became the first college in the nation to eliminate loans for low-income students. This new policy will eliminate loans for all Amherst students.
Once implemented, the new policy will affect not only incoming students in the Class of 2012, but also current Amherst students.
"Eight years ago, Amherst demonstrated its commitment to being a leader in making education more accessible to low-income students by eliminating loans for students from families with incomes of less than $40,000 a year," said Amherst College President Anthony W. Marx. "This new initiative significantly broadens that commitment by eliminating barriers for middle-income families who want to ensure that their children receive an excellent education. Highly selective colleges like Amherst must be open and accessible to all of the most talented students," Marx added. "This new initiative represents a significant step, enabling us to select most broadly for future leaders while ensuring mobility based on talent."
More than half of Amherst's students receive some sort of financial aid from the college. In the 2006-07 year, nearly one third of Amherst's students received financial aid packages that included loans.
Amherst College is need-blind. Every student admitted to the college receives financial aid that meets the student's full financial need. Currently, middle-income students take on federal and college loans (like Stafford Loans, Perkins Loans and Amherst College Student Loans) as part of financial aid packages that also include scholarships, grants and job opportunities. Beginning in the 2008-09 academic year, the loan component of this financial aid package will be replaced with scholarships; no Amherst student will be required to take out loans in order to come to Amherst.
The new program substituting scholarships for loans builds on Amherst's longstanding leadership around financial aid. Amherst was one of the first colleges in the country to adopt a need-blind admission policy; an applicant's financial need is not considered as part of the application process, and every admitted student receives financial aid that meets the student's demonstrated need. The college is not only widely considered to be one of the nation's very best liberal arts colleges, but it is also highly regarded as one of the "best values" in the U.S.
Good for Amherst, and better for its students. Will other elite institutions continue the trend? Stay tuned.
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