<p>The Vassar College Board of Trustees has announced another significant step toward assuring access to a Vassar education for students of diverse economic backgrounds, by approving the elimination of loans from the financial aid packages of students with calculated family incomes of up to $60,000. The college will replace those loans with additional Vassar scholarship grants, adding approximately $1 million a year to the college's already strong financial aid commitment. The policy will take effect in the fall of 2008 and will apply to students in all four classes, including current students.</p>
<p>"We believe strongly that financial circumstances should not be a barrier for a qualified student who wants to come to Vassar," said Catharine Bond Hill, president of the college and a nationally known economist specializing in higher education, specifically issues of affordability. "For Vassar, increasing access is a priority, and our Board has strengthened the resources necessary to live up to that commitment. Our financial aid is an investment in the rich diversity of our students, which is central to our mission."</p>
<p>Vassar is one of only a half dozen colleges with endowments of less than $1 billion to take the step of replacing loans in financial aid awards. Among its peer colleges and universities, including many of the schools that also have announced loan replacement policies, Vassar annually is a leader in the percentage of its students who receive financial aid, with approximately 55% of its students currently receiving aid. All Vassar financial aid is based on need.</p>
<p>The Board's action follows its decision last spring to return to a need-blind admissions policy, with admissions decisions being made without regard to a student's ability to pay. The need-blind policy and the elimination of loans apply to all students who are U.S. citizens or permanent residents. The college has historically met 100% of the demonstrated financial need of all of its admitted students, including international students, for all four years and will continue to do so.</p>
<p>Pomona College has also eliminated loans starting next school year and so that in place of loans a student might have qualified for, they will instead receive a grant.</p>
<p>So - I am curious about what they mean when they say "eliminate loans" - are they saying they pay the entire efc with grants?
Do they eliminate Stafford loans? Private loans? Loans directly from the Univeristy?
Can the student still take a Stafford Loan to pay the EFC?
I am trying to visualize a before and after financial aid package here.....</p>
<p>It's not that the schools award grant money to pay the EFC. Parents and students are still responsible for their respective amounts. The loans replace that part of the financial aid award that would have been in loans. Yes, they do replace Staffords, private loans, etc.</p>
<p>Students can take out loans for college expenses, but the idea is that they won't <em>have</em> to take out loans.</p>
<p>We may need to borrow a little to meet our parental contribution (EFC) to my son's college. But his financial aid award will be grants and work study only.</p>
<p>rentof2 is correct. Unfortunately, a lot a people think no loans means that if you need a loan the school will cover it. I know a lot of people who thought when Harvard and Pricenton then others came out with the no loans policy the believed if you got in, you went for free. Not so. They still come up with what the parents are expected to cover, whether or not it is accurate, and they do not cover any loans. For $60,000 and under is not a big deal on Vassar's part as that income level usually has all sorts of need based stuff available.</p>
<p>JustAMomOf4, I'm not sure if the Stafford loans are available if a student is having their typical loan expectation being replaced by institutional grant aid. My guess is that, no it wouldn't since the same level of need would not be present... but I don't know for sure about that.</p>
<p>There are evidently, though, private loans, some sponsored at low rates by states or even the schools themselves if the student has extra education related financial need, i.e., they need to borrow to buy a laptop, or would like to replace their work-study income with a loan.</p>
<p>If there is zero EFC, and no available assets by the college's formula of reckoning student resources, then yes, it is my understanding the student at these 100% need/no loans schools will receive a stipend for books (or be allowed to borrow them at no cost), and receive a travel stipend. The student would be expected to do summer work though and contribute, and work-study for personal expenses. Again, though, that is my impression, but I'm no authority.</p>
<p>When Vassar talks about a "calculated family income" of 60,000 or less, do they mean your adjusted gross income on your federal tax returns or is that figure arrived at by some other means? Does it take into account your various expenses etc?
Thanks if anyone knows....</p>