Penn keeps on following Harvard, announces new no-loan financial aid program

Colleges & Universities A-Z University of Pennsylvania
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<p>This came in my e-mail from Gutmann earlier today.</p>

<p>Subject: Penn announces new no-loan financial aid program</p>

<p>Today we are announcing a far reaching new financial aid initiative that will eliminate loans for financially eligible undergraduate students regardless of family income, making it possible for students from a broad range of economic backgrounds to graduate debt-free.</p>

<p>Penn's new program is the latest step in our efforts to widen access for students from all economic backgrounds, by expanding our no-loan program from low and lower-middle income families to include middle and upper-middle income families.</p>

<p>This new program will begin in September 2008, and include all eligible undergraduates, not just entering freshmen. Effective that year, students with calculated family incomes under $100,000 will receive loan-free aid packages, while families above that level will receive a 10 percent reduction in need-based loans.</p>

<p>By fall 2009, all undergraduate students eligible for financial aid will receive loan-free aid packages, regardless of family income level.</p>

<p>This is a transformative moment for higher education and for Penn. Making a Penn education accessible to students from the broadest array of economic backgrounds possible is fundamental to our mission. Our nation's young scholars should not be deterred from pursuing their dreams for fear of being a financial burden to their families.</p>

<p>We began our commitment to increasing access by addressing the needs of low income and lower middle-income families. We are now responding to the needs of middle and upper middle-income families, who have carried the greatest debt burden. We are sending a clear message to them that Penn is committed to supporting them as they seek to provide the best educational opportunities for their children.</p>

<p>We proudly join with a handful of other selective colleges and universities in eliminating loans from financial aid packages and, of those, we have the largest undergraduate enrollment.</p>

<p>We are fortunate to be launching our new initiative just months after announcing the Campaign for Penn, which has set a $350 million goal for undergraduate financial aid endowment that will be used to finance this new program.</p>

<p>This new initiative expands our long-standing commitment to need-blind admissions, which means students are accepted based on academic achievement, regardless of their ability to pay. Fewer than 50 private institutions across the nation have need-blind admissions policies and even fewer have financial aid based exclusively on need.</p>

<p>I also want to take this moment to thank each and every member of our extended Penn family for everything you do to help make Penn the place where revolutionary ideas, passionate people, and practical pursuits come together to make the most positive difference in our world. Happy Holidays!</p>

<p>You can find more information about this new program at: Penn:</a> Office of University Communications</p>

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<p>Full news release:</p>

<p>

</p>

<p>[Penn:</a> Office of University Communications: Penn Expands Financial Aid Program to Eliminate Loans](<a href=“http://www.upenn.edu/pennnews/article.php?id=1287]Penn:”>http://www.upenn.edu/pennnews/article.php?id=1287)</p>

<p>Of course, Albert, Penn doesn’t follow Harvard in everything. It didn’t follow Harvard’s lead in eliminating its early admissions program, unlike a certain other Ivy in a neighboring state. :)</p>

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<p>I expected this news today. After I was accepted on Friday, my regional rep called me and asked me about financial aid. He hinted that Penn would be able to make a better package offer next week. Now I know why.</p>

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<p>is trailing in fifth out of several hundred(or thousand?) so bad?</p>

5

<p>Actually, Harvard followed Princeton’s lead in the no-loan policy–however, for schools with the money to do so, these no-loan policies are wonderful, so I don’t think it matters who followed whom.</p>

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<p>It would be nice if Penn put a bit of money into fixing the decrepit urban infrastructure (the huge potholes, completely crumbled curbs from 38th st on come to mind) before pursuing an exercise in futility at out-spending Harvard (which, for perspective, has annual endowment RETURNS the size of our entire endowment)</p>

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<p>i dunno, it seems to me that eliminating loans in financial aid ranks a little above fixing a couple potholes in terms of the long-term benefit it provides students, nevermind that those things are public property issues that the city, not Penn, is supposed to take care of.</p>

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<p>also the whole discussion about who did it first seems rather silly, and I hardly think it’s something harvard should be praised for. As has been pointed out, they have an absurd amount of money; the right thing for them to do would be to cease charging tuition all together, a move they have more than the means to do.</p>

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<p>Are they going to be reevaluating aid packages for class of 2012 EDers?</p>

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<p>did you not read the statement?</p>

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<p>I did, but since we received financial aid offers when accepted, I was just wondering if we just ignore that or what. It just seems strange that they would send out offers (mine is completely loan-based) if they were planning this for this year.</p>

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<p>if your package is entirely loan-based in its current form, most likely you only qualify for the 10% loan reduction for your first year anyway</p>

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<p>While this is a great move for Penn, unfortunately the financial aid program at Penn still won’t be nearly as generous as Harvard’s (or, presumably, Yale’s to-be-announced) program. </p>

<p>Penn’s aid budget will be about $110,000,000, spread over about 10,000 undergraduates. </p>

<p>Harvard’s aid budget will be about $120,000,000, but spread over only 6,500 undergraduates.</p>

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<p>Given that undergraduates seem to be on a steady trend of becoming a net drain on university finances rather than gains, why doesn’t Penn trim its undergraduate enrollment a bit?</p>

<p>It solves the housing crunch AND lowers the acceptance rate ;)</p>

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<p>

True. But Penn’s endowment is only $6.6 billion compared to Harvard’s $34.9 billion. You gotta play the hand you’re dealt and, looking at it that way, Penn’s making a pretty big play here! :)</p>

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<p>Yes, I agree. 20% is a significant aid jump. It’s also a good PR move for them.</p>