Colby College to replace loans with grants

Colby College is the latest college to announce that they will be replacing loans with grants for all students. Colby is a small liberal arts college in Maine that is highly selective. Colby’s new policy goes into effect for the 2008-2009 school year and eliminates loans for all student aid packages for both new and continuing students.

Although Colby has a significant endowment of almost $600,000,000 it is still substantially less than many of the other colleges that have announced similar policies in the past few months. The more this type of policy can trickle down the better off student who are looking at selective colleges will be.