Swarthmore College is joining a nationwide trend in erasing student loans from its financial aid offers.
Beginning next school year, loans will be replaced by scholarships at Swarthmore. The change is likely to affect more than 700 new and current students. That’s half of the school’s enrollment.
The dean of admissions and financial aid, Jim Bock, was quoted as saying, “Loan-free awards will give our students the freedom to explore all career choices because they won’t need to worry about how they will repay their college loans.”
Current tuition, room, and board at Swarthmore run $45,700 a year.
Swarthmore’s announcement follows Harvard University’s decision to replace all student loans with grants.
As a result, Harvard will spend as much as $22 million more each year on student aid. The policy is aimed at middle- and upper-middle-class students.
The University of Pennsylvania and other colleges currently have plans in place that permit low-income students to attend college virtually for free.
The changes in financial aid policies arise from an effort to seek an economically-diverse student body. Universities are also trying to answer critics who say that the cost of a college education is too high.
The moves also come in light of the controversy over student loan programs. Some programs have been accused of being corrupt – student loan firms are alleged to have cultivated improper relationships with college officials.
In addition, a number of students are graduating from college with almost insurmountable debt loads. In some cases, students end their college careers with tens of thousands of dollars in student loan debt. As a result, some college grads are postponing marriage, delaying children, and giving up their dream of owning their own homes and in effect need to consider debt consolidation loans to improve their personal finances after graduation.
Observers are hoping the changes in student aid packages will help to alleviate the problem, allowing college graduates to enjoy a higher standard of living.
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