<p>While we have not received our son's complete financial aid package for his second year at Penn yet, and have only heard from the SFS that they are "not ready yet", I noticed yesterday that under the 'Loans' section of the SFS that my son had been approved for the highest amount of Unsubsidized Stafford Loan for the upcoming year, which was even higher than his approved loan for last year, which we had to make special requests for, and ultimately were granted.</p>
<p>I am concerned about this and wondering about the commitment to maintaining financial aid for students who qualify, as President Gutmann had reassured in her letter to parents stating that tuition was increasing at only 3.75%, and an increase in commitment to financial aid was up 15%. Also the elimination of student loans to qualified applicants being replaced by grants.</p>
<p>An excerpted piece from their website:
Penn</a> On Balance: Expanding Financial Aid While Reducing Tuition Increase | Penn : Making History</p>
<p>"In 2008-09, all undergraduate students with calculated family incomes of less than $100,000 received loan-free packages, while other undergraduates received a 10 percent reduction in their need-based loans. Penn's new initiative will substitute grants for loans for all aid-eligible undergraduates beginning this fall. A typical Penn student from a family making less than $90,000 will have tuition fully covered by a grant. A student from a typical family with income less than $40,000 will not be expected to pay tuition, room or board."</p>
<p>Does anyone have any experience with Penn on this? It seems in our situation, despite little change in our EFC or finances, our son's loans will increase, not decrease. We did go into this with open eyes [albeit inexperienced, as he is our first child to enter college thus far]. It certainly does give me pause thinking about the huge debt he will graduate with, and ponder the 'I told you so' mentality that some have about spending so much money on an undergraduate degree or Ivy League school. And as many of the kids there, he could have gotten relatively debt free packages at merit rewarding schools, but chose to go to Penn. No regrets yet, but very nervous for the future finances, particularly when the newspapers seem to say one thing and the need based awards something else?</p>