As the recession continues to affect universities nationwide, two private colleges have altered their financial aid packages in a way that may oblige students to take on debt.
Dartmouth College and Williams College will no longer offer aid packages allowing students of all incomes to attend without taking out loans, according to a Feb. 9 Associated Press article.
This announcement came just days after President Barack Obama announced a provision in his proposed fiscal year 2011 budget that would forgive student loan debt after 20 years of trying to repay it, as well as the debt of those who decide to work in public service after 10 years.
Experts are predicting financial aid at private schools will decrease next year as tuitions continue to increase, according to the article.
In a press release announcing their plans to close a $100 million budget gap, Dartmouth officials said they will continue offering loan-free aid packages for low-income students, as they have for some the past two years.
“The College has reaffirmed its commitment to enable the most talented students to attend Dartmouth through need-blind admissions and will continue to provide free tuition, with no loan expectations, for students with family incomes of $75,000 a year or less,” the release states.
But for students starting in the class of 2015 with family income above that level, loans will now come standard in aid packages. Such loans had previously been removed for all those on financial aid under the free low-income tuition provision.
“[B]eginning with the Class of 2015, which will matriculate in the fall of 2011, Dartmouth will meet financial aid needs of students with family incomes above $75,000 through a mix of loans, scholarships, and work study,” another release states. “The balance between the various forms of assistance will vary according to income, with the loan requirement for financial aid recipients from households earning $75,001-$200,000 ranging from $2,500-$5,500 annually.”
Along with this change, Dartmouth announced a 4.6 percent increase in tuition, room, board and fees for the 2010-2011 school year, the lowest percentage increase in five years for the college.
Boston University’s tuition increased 3.75 percent for this academic year, the lowest increase in 40 years, making 2009-2010 tuition $37,910. BU, though a private university, does not use the free low-income tuition provision in place at Dartmouth.
$150 million was awarded in aid last year, according to the Admissions Office website, with $44 million of that in the form of grants and scholarships that do not have to be repaid. Aid packages comprise a range of need-based grants, merit-based scholarships and federal and state loans, though none of these is currently required or guaranteed for an applicant, no matter their income.
At press time officials could not be reached for comment on whether similar changes might be in store for BU.
