University grant policy promotes diversity

Since the implementation of the University's no-loan financial aid policy, the percentage of students who receive aid has increased by almost 20 percent, leading to a shift in demographics that has helped debunk the University's reputation as a haven for country club elites.

Enacted in 2001, the no-loan policy was meant "to allow students to attend college without incurring large amounts of debt to repay," explained Betty Ashwood, associate director of undergraduate financial aid. Under the policy, which administrators have touted as being the best in the country, qualifying students receive all aid in the form of grants.

Financial aid was provided to 38 percent of the Class of 2001, which graduated immediately before the University eliminated loans. By contrast, 55 percent of the Class of 2010 receives financial aid.

The low-income population — defined as students whose annual family income is below $50,900 — has also more than doubled in that time, from 88 students in the Class of 2001 to 182 in the Class of 2010.

Meanwhile, financial aid grants have increased from an average package of $15,064 for the Class of 2001 to $29,786 for the Class of 2010.

"We hoped that with no loans, there would be an increase in the number of students in the applicant pool from a broader range of diversity and income groups. If the applicant pool increases, we would then hope that this would lead to an increase in the number of matriculants," Ashwood said. "We do think we've accomplished that."

Indeed, minority enrollment has increased in parallel to the elevation in financial aid, from 25.6 percent of the Class of 2001 to 37 percent of the current freshman class.

The policy has had varying effects on current students' decisions to come to Princeton. For Ryan Bayer '09, it was a key factor. "Princeton had other qualities that I was looking for, but one of the main things was the no-loan policy," he said in an email.

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Though Bayer said he liked Duke better than Princeton, "Princeton's offering the no-loan policy and its prestige made the decision kind of a no-brainer."

Nathaniel Angell '09 expressed similar concerns. "One of my main goals while looking at colleges was to find a school that would allow me to graduate debt free," he said in an email.

Though he initially thought he would attend Cornell, he said, "the cost was a real issue. My parents could not afford sending me there, and they did not want me to be burdened down with student loans."

"That's when we started searching for colleges with generous financial aid, ultimately leading to Princeton," Angell added. "I probably wouldn't be at Princeton if it were not for their no-loan policy."

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Other students, such as Chris Rucinski '10, did not weigh the no-loan policy as heavily when choosing a college.

"Basically it came down to the fact that Princeton's grant covered quite a bit of the cost, and my parents were willing to pay for the expenses that my summer work and on-campus job did not cover," he explained.

Princeton has not been the only school to adopt a generous financial aid policy. Harvard implemented a Financial Aid Initiative in 2004 which eliminated the expected parental contribution from families whose annual incomes were less than $60,000. The initiative also lowered the expected contributions from families with annual incomes between $60,000 and $80,000.

Similarly, in 2005, Yale eliminated its expectations of financial contributions from parents earning less than $45,000 a year and lowered the expected contribution from parents earning under $60,000.

"Some of [the] other schools [to which I applied] had offered me aid that was higher than Princeton's, and some had a part of their financial packages in loans," Blessing Agunwamba '10 said.

"I did not like the idea of having to graduate with a large debt," she added.

"I prefer the Princeton system, which offers students a package without loans, provides campus jobs and leaves the decision of getting a loan up to the student."