College & Workforce Readiness

Princeton Switches Student Aid From Loans to Grants

By John Gehring — February 07, 2001 2 min read
  • Save to favorites
  • Print

Princeton University, in an aggressive effort to help students avoid the crushing debt load they often face after graduating from college, has revamped its financial-aid programs to eliminate loans and replace them entirely with grants.

The decision, approved by Princeton’s board of trustees late last month, takes effect next fall. About 40 percent of students in the class of 2004 at the prestigious 6,300-student university in New Jersey receive some financial aid, and nearly one-quarter take out loans to cover college costs.

“We want to ensure that no student admitted to Princeton feels that he or she cannot attend because it would present a financial hardship,” university President Harold T. Shapiro said in a statement announcing the decision.

Higher education experts said the move could put intense pressure on other Ivy League schools, such as Harvard and Yale universities, to follow suit in order to compete for students. But they said it seemed unlikely that colleges and universities elsewhere would do the same.

“This is a very important development, and it could set a precedent for many other selective institutions,” said Terry W. Hartle, a senior vice president of the Washington-based American Council on Education. “Princeton University has once again pushed the envelope with financial aid. It is clearly a breakthrough pro-position.”

But only a few colleges and universities, he said, will have the monetary muscle to adopt and sustain similar plans.

“This is a very expensive proposition,” said Mr. Hartle, who monitors financial-aid issues, “and only a small number of colleges will have the financial resources to match it.”

Debt-Free Graduates

Princeton’s new approach to financial aid greatly expands a program that the university launched in 1998 to reduce low- and middle-income students’ dependence on loans by replacing them with grants for students from families earning less than $46,500 a year and reducing loan reliance for students from families earning from $46,500 to $66,500.

Princeton officials estimate that the no-loan provision and other improvements to the university’s financial-aid programs will cost more than $5 million next year. The university will cover those expenses with money from its growing endowment, now estimated at about $8 billion, and with annual donations. Princeton officials say they spend an estimated $29 million a year on financial-aid programs.

College officials say the change should allow students who stay within a reasonable budget and meet part-time work requirements to graduate without any debt instead of owing $15,000 to $20,000 or more at the end of four years as is currently the case.

Princeton students will pay $33,613 for one year of tuition, room, and board next fall, a 3 percent increase over this year.

Related Tags:

A version of this article appeared in the February 07, 2001 edition of Education Week as Princeton Switches Student Aid From Loans to Grants

Events

Artificial Intelligence K-12 Essentials Forum How AI Use Is Expanding in K-12 Schools
Join this free virtual event to explore how AI technology is—and is not—improving K-12 teaching and learning.
Federal Webinar The Trump Budget and Schools: Subscriber Exclusive Quick Hit
EdWeek subscribers, join this 30-minute webinar to find out what the latest federal policy changes mean for K-12 education.
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Curriculum Webinar
End Student Boredom: K-12 Publisher's Guide to 70% Engagement Boost
Calling all K-12 Publishers! Student engagement flatlining? Learn how to boost it by up to 70%.
Content provided by KITABOO

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

College & Workforce Readiness Colleges Will Give a Leg Up to Students Who Demonstrate Civility
A new program allows students to build a "civility transcript" for college through peer debates.
5 min read
Word bubbles of different sizes and abstract content arranged in a grid like pattern.
Vanessa Solis/Education Week + iStock
College & Workforce Readiness Opinion How One Organization Is Helping Grads Find Jobs
For students to succeed in school and careers, we need a new playbook.
6 min read
The United States Capitol building as a bookcase filled with red, white, and blue policy books in a Washington DC landscape.
Luca D'Urbino for Education Week
College & Workforce Readiness Q&A How This Schooling Model Puts Career Preparation First
The president of the National Career Academy Coalition talks about matching potential careers with local economic needs.
4 min read
Fourth graders Kysen Dull, left, and Kyree Davie try out some masonry work as they put a brick in place with help from Owensboro High School masonry students during Career Day at Cravens Elementary School in Owensboro, Ky., on Nov. 4, 2024.
Fourth graders Kysen Dull, left, and Kyree Davie try out some masonry work as they put a brick in place with help from Owensboro High School masonry students during Career Day at Cravens Elementary School in Owensboro, Ky., on Nov. 4, 2024. Putting on Career Day events is one way students can be exposed to career options at an early age.
Alan Warren/The Messenger-Inquirer via AP
College & Workforce Readiness Tennessee Pauses Bill Challenging Immigrant Students’ Rights
Republican lawmakers in Tennessee have asked U.S. officials for guidance on whether the bill would jeopardize federal funding.
2 min read
A woman embraces her child outside a House hearing room during protests against a bill that would allow public and charter schools to deny immigrant students from enrolling for classes in Nashville, Tenn., March 11, 2025.
A woman embraces her child outside a House hearing room during protests against a bill that would allow public and charter schools to deny immigrant students from enrolling for classes in Nashville, Tenn., March 11, 2025.
George Walker IV/AP