<p>Can anyone explain to me what the "no loan" policy means, such as the one at UPenn? I have researched it but I'm still a little confused. Thank you!</p>
<p>See here - not completely current, but it will still give you a good explanation of most of the different schools’ policies:</p>
<p>[Project</a> on Student Debt: Financial Aid Pledges](<a href=“http://projectonstudentdebt.org/pc_institution.php]Project”>http://projectonstudentdebt.org/pc_institution.php)</p>
<p>Most often, it means that the school will not include loans in its financial aid packages for lower income students. Some state schools limit the policy to state residents. Other schools may extend the policy to all students, and not just low income students. Varies from one school to another.</p>
<p>penn states</p>
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<p>Penn will not put any loans in your financial aid package as far as the school meeting 100% of your demonstrated need. However, you may have to take out loans, especially if you need to help your parents pay the EFC i.</p>
<p>No school intends to bar students from borrowing. </p>
<p>Rather some schools award aid without loans–scholarship and work opportunities only. A very generous policy!</p>
<p>You are welcome to borrow to help with your family’s share of your Penn expenses.</p>
<p>Sybbie has well explained this. It can mean different things at different schools, however. I believe Cornells has a “no loan” policy that puts no loans in packages for students from families below a certain income threshhold. Some will only offer subsidized loans. Some, and I can’t remember the one I saw, themselves “no loan” because only federal loans are in there . So the old "YMMV’ goes with that policy and you gotta read exactly what the situation is with each school on your list and even ask because things do change from year to year.</p>
<p>It’s a nice thing when the Staffords are not stuck into your need package because it leaves the entire $5500 freshman year intact for you, the student, to borrow and help pay the EFC. Otherwise that option is gone when a school snatches that up and sticks in the aid package as part of your school financial aid.</p>
<p>My D attended Vanderbilt, which had a “no loan” policy. They met calculated need (Profile, so not FAFSA need) without loans … although there was a student work expectation in the aid package. If we had wanted, she could have borrowed her annual Stafford loan limit in unsub loans, and we could have borrowed a parent PLUS loan in the amount of Cost of Attendance less free money (grants/scholarships) less her unsub loans. However, we did not need to borrow - between the aid package and what we (her parents) paid, we were able to cover the costs.</p>