In an effort to make a Davidson education affordable for all students, the Board of Trustees has approved a new policy that will eliminate loans from financial aid packages. Beginning in August, Davidson students will have their demonstrated financial need funded entirely through grants and student employment, and can graduate debt free.
“We believe this new policy is the necessary response to the financial situation facing many applicants and their families,” said President Robert F. Vagt, “and we know it is consistent with a core value of the college. A Davidson education should be affordable for all students, regardless of means. With the support of the college family, we are confident this bold initiative will make a significant difference for our students, our institution, and our community.”
Davidson is the first national liberal arts college, and only one of a couple of institutions of higher education nationwide, to eliminate student loan debt. Students across the country currently borrow $53.8 billion per year to cover college costs.
The policy is anticipated to cost $3.5 million annually, depending on the percentage of students in future classes with financial need. Currently, 33 percent of Davidson students receive need-based financial aid, but Gruber expects that elimination of loans will increase that number to about 40 percent. Under these forecasts, $70 million will need to be raised to endow the policy permanently.
Comments (1)
This is amazing!! I wish I had this opportunity while I was in undergrad. My father lost his job when I was a freshman and I had to take out almost $50,000 for all 4 years. It's now three years later and I am a grad student with deferred loans and interest rates at 10%.
I want to thank you for thinking about your student's future. I am glad that current and future students will not have the burden that I have now.
Sincerely,
Michele Palmese
Jackson, NJ
Posted by michele | April 10, 2007 11:10 AM
Posted on April 10, 2007 11:10