Northwestern to Replace Student Loans with Grants for Neediest Students

Paying for College
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<p><a href="http://www.northwestern.edu/newscenter/stories/2008/01/noloanpolicy.html%5B/url%5D"&gt;http://www.northwestern.edu/newscenter/stories/2008/01/noloanpolicy.html&lt;/a&gt;&lt;/p>

<p>Fall short of matching the Ivies but better than doing nothing, I guess. ;)</p>

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<p>This is fantastic news as this is really going to make a world of difference and make a Northwestern education for some really well deserving students. Kudos to Northwestern.</p>

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<p>This grant means 'free money', isn't it? I am not against it and certainly welcome. But, how do they afford it? How long can they sustain and I am curious if quality would suffer because of this?</p>

<p>Again, I am not against it, just curious!</p>

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<p>Oh...I keep asking...WHY can't my kid's private school do this? Murphy's Law being there...it will happen the year SHE graduates!!!</p>

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<p>More info: <a href="http://www.chicagotribune.com/news/nationworld/chi-financial_aid_01feb01,1,918942.story%5B/url%5D"&gt;http://www.chicagotribune.com/news/nationworld/chi-financial_aid_01feb01,1,918942.story&lt;/a&gt;&lt;/p>

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<p>AskMe - They use this in order to compete more for top students, so it is intended to increase quality. The money comes from the MASSIVE endowments that these schools that get rid of loans generally have.</p>

<p>Considering they generally are spending 3-5% of endowments that grow at a 20%+ rate, I don't think this is going to hurt too bad.</p>

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<p>thumper, LOL. In this case it seems to apply to families earning 55k or less anyway (450 of their neediest families). Somehow it is still fine to have the middle class student burdened with large loans.</p>