News & Notes: Williams College ends no-loan financial aid policy

Williams replaced student loans with direct scholarships two years ago, matching the policy of several peer institutions, including Princeton. But in a letter posted on the college’s website on Jan. 31, interim president Bill Wagner said that some incoming members of the Class of 2015 will be expected to take out loans, though not those at the lowest family income levels. Current students and those enrolling next fall will not be affected by the new aid policy.

While Williams’ financial aid budget increased this year and will grow again next year, increases in need have outstripped the college’s rise in financial aid spending.

Princeton became the first university to replace loans with grants in 2001, and other wealthy institutions have followed suit over the decade. Williams ended the loan component of its aid packages in the 2008-09 academic year. In light of the recent economic recession, though, Williams can no longer afford the more generous policy and is reversing course.

Other schools have also made adjustments to their financial aid policies in recent months. Harvard Law School no longer provides one year of tuition to students who plan on entering careers in public service. Middlebury College, meanwhile, cut its financial aid budget for international students and is requiring students on financial aid to make a larger contribution from their work earnings.