Two peer schools return to loans

In the near future, students at Dartmouth and Williams Colleges may be facing debt from loans.

The two institutions have decided to move away from their previous no-loan financial aid policies.

Dartmouth announced that families with an annual income of more than $75,000 will see loans as part of their aid package. Williams has not yet established a cut-off income for the no-loan policy, but administrators estimated that it will also be around $75,000.

By contrast, Penn’s Student Financial Services has confirmed that there are no plans to change the financial aid policy. The University is committed to its no-loan program, according to SFS Director Bill Schilling.

“Reserves are put aside for years like this,” he explained.

Both Dartmouth and Williams’ decisions will go into effect in time to impact the class of 2015. Current students will not feel the change.

Dartmouth Media Relations Director Roland Adams repeated a statement from the Dartmouth’s president President Jim Yong Kim concerning the new no-loan policy: “The simple reality is that we just can’t afford that anymore.”

The new policy is part of Dartmouth’s budget reduction plans, Adams said. Dartmouth projected a $100 million deficit, according to Kim.

As for the impact this switch could have, Williams officials do not anticipate much change, according to Assistant to the President of Public Affairs Jim Kolesar.

However, he does not believe the loan policy will deter students from applying to Williams. “Same class, same students,” he said in reference to future applicants.

“We’re trying to keep Williams affordable in a financially affordable way,” Kolesar said. He explained that the program will allow the college to continue to give funds to students who need them while adapting to the down economy.

When asked if he anticipated other colleges adopting a similar policy to that of Williams, Kolesar said he “is not sure,” since all colleges are facing the same challenges in the changed financial climate.

Penn’s relative financial health has allowed it to “meet the full needs,” Schilling said.

Faced with mid-year requests for aid, Schilling said he reviewed over 200 changes in family circumstances and that Penn was able to meet all requests.

Penn saw a 10-percent increase in students that needed financial aid this year, Schilling said.

Schilling said he does not foresee another year where need will be quite as high as this year. But if there is, he said, the financial aid budget will adjust accordingly.

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