University of Pennsylvania to eliminate loans

The latest college to announce the elimination of loans from financial aid packages is the University of Pennsylvania. Penn is using a phased in approach to eliminate loans. Beginning in Fall 2008 Penn will eliminate all loans for students with family incomes less than $100,000. Families with income above that level will have their loans reduced by 10%. In Fall 2009 all students, regardless of family income, will receive loan free packages.

As each new selective college eliminates loans, it puts more pressure on the other selective colleges to do the same. Hopefully the pressure will continue. Congratulations Penn.