GOOD NEWS in College Financial Aid

As I continue to research college financial aid for you, I've come across wonderful news!

Bowing to pressure from the American people and Congress, many colleges are using more of their endowments to limit or completely eliminate loans from their financial aid packages!

At Stanford, where this year the cost of attendance is $49,500/yr, they recognize that many people will not be able to afford that. Students whose families’ total income is lower than $45,000/yr get a free ride, with the exception of some self-help, which Stanford requires of all their students receiving financial aid. The standard amount of self-help required is $4,000/yr, which the student is expected to provide through working or taking out loans. Stanford has also set aside an additional $5 million for financial aid for families with incomes from $60,000 to $135,000.

This year Emory University, where the cost of attendance is $47,000/yr, eliminated loans for undergraduates whose families earn under $50,000/yr. For families that earn up to $100,000/yr Emory is capping the students total loan amount at $15,000 for four years. Considering that borrowing $80,000 --$100,000 for college is not unheard of, a cap of $15,000 is great. Private loan companies advertise that you can get up to $40,000 a year!

Brown University recently announced that it is eliminating tuition for students whose parents earn less than $60,000. Their cost of attendance for the 2007-2008 school year is $48,660. Not only are they helping families that earn under $60K, Brown will also substitute grants for student loans in the financial aid packages of students whose families earn less than $100,000 a year.

And this is just the tip of the iceberg!

Reports of universities cutting or limiting the loans from their financial aid packages are coming fast and furious! Every week another college announces that they are using more of their endowment to lessen the burden on their students. I don't know about you, but I consider this a great victory for parents and students! Maybe now students can get an education without graduating with the millstones of massive debt hanging around their necks.

Nice to have a bit of good news for a change. I hope all your news is good news when it comes to financial aid!

Blessings,
Bonnie