Economic activity

Dartmouth College eliminates undergraduate student loans and replaces them with scholarships

The initiative is part of the Ivy League school “The call to leadleadership campaign, and will begin from June 23 for the 2022 summer term, the statement said. The announcement also means that Dartmouth’s class of 2022 will be the first class to enter the school and benefit of this program, the statement said.

“Thanks to this extraordinary investment from our community, students can prepare for lives of impact with fewer constraints,” Dartmouth President Philip J. Hanlon said in a statement.

Dartmouth’s announcement comes amid the ongoing student loan debt debate in the United States, where 43 million people are waiting to hear whether President Joe Biden will wipe out some or all of their federal student loan debt. In April, after facing months of pressure from other Democrats to write off $50,000 per borrower, Biden said he was considering a broad student loan forgiveness, albeit a smaller amount.

Dartmouth previously eliminated the loan requirement for undergraduate students from families with annual incomes of $125,000 or less. This will now be extended to families earning more than $125,000 or less who receive need-based assistance, according to the release.

The transition to a “loan-free financial policy” will benefit students from middle-income families, the statement said. The initiative is “the culmination of a series of remarkable achievements that have transformed Dartmouth’s financial aid resources and policies over the past year, propelled by more than $120 million in scholarship donations from studies and endowment pledges since September 1,” the statement said.

“More than 65 families have supported the campaign goal of eliminating loan requirements for Dartmouth undergraduate financial aid scholarships, committing more than $80 million in donations to the endowment,” the statement read.

An anonymous donor pledged $25 million to carry out the campaign, which was “one of the largest scholarships in Dartmouth’s history,” the statement said.

“When I think of the exciting and transformational opportunities now available to these students without this financial barrier, I think this is one of the most significant achievements of the campaign,” Dartmouth alumnus Ellie Loughlin said in a statement. communicated.

Dartmouth isn’t the only school to change its student loan policy. Williams College in Massachusetts replaced all financial aid with non-reimbursable grants starting this fall.
In Georgia, Emory University announced in January that it would eliminate need-based loans in undergraduate financial aid programs and replace them with institutional grants and scholarships.
Ohio State University announced in November 2021 that he would use his endowment to eliminate student loans within the decade for his “debt-free degree” plan.

CNN’s Katie Lobosco and Kevin Liptak contributed to this report.