University of Pennsylvania to Eliminate Loans for Students of Families Earning Less Than $50,000
The University of Pennsylvania, in an effort to alleviate the financial burden on low- and middle-income students, has announced a plan to provide grants for undergraduate students from families with annual incomes of $50,000 or less.
The move coincides with a $6.3 million increase in the university’s undergraduate financial aid budget for the coming academic year, with those funds also targeted to low- and middle-income families.
“As we outlined in the Penn Compact back in 2004, increasing access to a Penn education is a top priority,” says Penn President Amy Gutmann. “By eliminating loans for low- and middle-income students, our financial aid program now enables students from every family income level to enroll at Penn. By providing financial aid packages without loans to students whose parents earn $50,000 or less, we can ease their financial concerns, not only throughout their education but also after graduation, enabling them more freedom to choose the most satisfying careers.”
The elimination of loans will mean that the highest-need students will each receive grant aid of more than $45,000 in 2006-2007. Additional grant aid for sophomores, juniors and seniors was also approved to moderate any self-help and/or loan increases. Penn spends more than $78 million per year out of its operating budget on financial aid.
The university is projecting an increase of 7.7 percent in its need-based undergraduate grants and scholarships in the coming year.
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