No Loan Financial Aid Policies: Flash In The Pan?

Help for middle class families. Reducing college loan 
burden of students and parents. These are a couple 
of the reasons given by colleges and universities for1 Harvard University: ($10,894,229,000.00) or
developing "No Loan"  financial aid policies.  -29.8%
Institutions of higher education instituted these 
financial aid policies, which fully fund financial need of2 Yale University: ($6,543,000,000.00)  or  -28.6%
families with AGIs under institutionally prescribed caps 
without requiring or offering student or parent loans.3 Stanford University: ($4,595,279,000.00)  or
The AGI caps vary from college to college. The-26.7%
income caps can be set at anywhere from $50,000 
to $120,000. Colleges accomplished these "No Loan"4 University of Texas System: ($4,008,135,000.00) 
goals by utilizing institutional grants and scholarships inor -24.8%
conjunction with federal grants, scholarships and 
workstudy.  The institutional funds typically drawn5 Princeton University: ($3,735,016,000.00)  or
from endowments.-22.8%
  
Up until a few years ago there had been relatively6 Northwestern University: ($1,798,688,000.00) or
few such programs. And although, these programs-24.8%
have increased in  number, they are still not 
widely available at most colleges or universities. "No7 Duke University: ($1,682,998,000.00)  or -27.5%
Loan"  programs are found generally at elite and 
selective colleges with healthy endowments. Most8 The Texas A&M University System and
colleges don't have that luxury.Foundation: ($1,575,598,270.00)  or -23.7%
  
The popularity of  "No Loan" financial aid programs9 University of Michigan: ($1,571,075,000.00)  or
began in earnest about three years ago in response-20.7%
to criticism from Congress regarding the large 
endowments many of these institutions held.  As10 University of Chicago: ($1,538,224,000.00) or
tuition costs rose and endowments grew with a-23.2%
strong stock market, Congress felt that universities 
were holding too much money in their endowments. 
It questioned why more of those funds were notEarlier this year, Williams College in Amherst,
put towards financial aid or  used to reduce tuition.Massachusetts, ended its "No Loan" policy.
There were threats of Congressional reviews of and Lafayette College, in Easton, Pennsylvannia, has
potential federal regulation of endowments.reviewed it's financial aid policy. While it retained the
 "No Loan" policy for families with AGIs below
Despite the growing popularity of such programs by$50,000, the loan limit was raised for students with
elite and selective colleges, many students andfamily AGIs of between $50,000 and $100,000.
families were unaware of them. Unfortunately, thereThose families are now expected to borrow $3,500
has been less interest in initiating "No Loan" financiala year up from $2,500 a year. Dartmouth College in
aid policies at other institutions. And with theHanover, New Hampshire is on record as considering
economy in a slide and endowments suffering hugerevamping it's "No Loan" financial aid policy.
losses in  fiscal year 2009, colleges and 
universities are now reviewing, revising and reversingSo while there are a number of colleges and
these policies.universities that still have "No Loan" financial aid
 policies, if you are considering one of
The 2009 NACUBO (National Association of Collegethese schools, be sure to question the future status
and Unversity Business Officers) Commonfundof the policy and make your college decisions
Study of Endowments ranked the endowmentknowing that there is a good possibility that the
losses in fiscal year 2009. The followingprogram will be eliminated.  If the program is
institutions experienced the greatest losses ineliminated, you will need to rely on federal or private
endowment dollars. student loans. So be forwarned and prepared.