The number of colleges getting rid of student debt is growing
Carleton College recently joined a list of schools, including Harvard and Yale, that have eliminated student loans from their financial aid packages.
More colleges are eliminating student loans from their financial aid packages, replacing them with grants and scholarships, as the soaring student debt burdens millions of Americans. Carleton College in Minnesota is among the schools adopting this change, joining a growing list of institutions opting for grants and scholarships instead of loans.
The university's president, Alison Byerly, believes the elimination of loans will benefit incoming and current students from middle-income households who will greatly benefit from not having to repay student loans. The move is backed by $80 million in donations and an additional $48 million sought to sustain the program. Religious schools like Asbury Theological Seminary in Kentucky are also following suit, phasing out federal student loans and shifting towards scholarships to allow students to graduate with less debt and greater freedom to serve wherever they are called.
Princeton University pioneered this trend in 2001, followed by other prestigious institutions such as Harvard and Yale. The shift aims to address the $1.7 trillion student debt burden affecting over 40 million Americans. Despite some concerns from borrowers about the impact on monthly bills due to rising interest rates and difficulty in finding employment, the Education Department maintains that the changes are intended to simplify the lending system and encourage colleges to reduce tuition costs.
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