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March 19, 2007

Davidson Eliminates Student Loans

This is an interesting press release! Davidson College is eliminating loans from student aid packages -- all 'need' will be met with grants and student employment. Need is a tricky thing (and Davidson, specifically, drove my mother crazy about aid in the spring of 1980 . . . she would've killed me if I'd wanted to go there after the correspondence she had with the admissions/financial aid folks), but this is certainly one way to make college more affordable for some people - some folks will graduate debt-free.

Read carefully, though. The offer isn't as generous as it sounds at first.

Here's part of the press release:

DAVIDSON, N.C., March 19 /PRNewswire-USNewswire/ -- In an effort to make a Davidson education affordable for all students, Davidson College (http://www.Davidson.edu) and its Board of Trustees announced today a new financial aid policy that will eliminate loans at the institution. As a result, all Davidson students will have their demonstrated financial need funded entirely through grants and student employment.

"We believe this new policy is the necessary response to the financial situation facing many applicants and their families, and know it is consistent with a core value of the college," said Davidson College President Robert F. Vagt. "A Davidson education should be affordable for all students, regardless of means. This is an historic change for Davidson and for liberal arts institutions across the nation. With the support of
the entire college family, from students to faculty, trustees to alumni, we are confident this bold reform will prove to make a significant difference for our students, our institution, and our community."

Taking effect in August 2007, this new policy makes Davidson the first national liberal arts college in the country to adopt such a policy, eliminating student debt for its graduates. Davidson will meet 100 percent of the demonstrated need with grants and student employment, but families retain the option to take out education loans as part of personal financing.

Davidson will maintain its strict commitment to practicing need-blind admissions, meaning the family's ability to pay for a Davidson education has no bearing on whether or not the student is admitted.

Currently, 33 percent of Davidson students receive need-based financial aid, with packages inclusive of grant, loan and campus employment. Nationally, college students borrow $53.8 billion per year to cover college costs. My emphasis.


I note that 67 percent of students can't show need. I bet a bunch of them ARE taking loans. Because Davidson is only talking about "demonstrated need" a bunch of people will still graduate with a pile of debt.

Like me. I was offered some kind of named scholarship at Davidson and received a separate, polite letter telling me that because I could not demonstrate need the scholarship would pay $100 per semester (or year, I forget). Even in those far off days $100 wouldn't cover books for a semester. My mother inquired. The tactful admissions officer pointed out that should my father die suddenly I would certainly be able to demonstrate need and the scholarship would kick in. Hence, I was strongly encouraged to go elsewhere or face Mother's wrath. Which is something to behold.

Oh - bear in mind that this is what Davidson thinks 67% of their students can afford without any help (demonstrated need):

The fees for the 2006-2007 academic year are as follows:
* Required student charges (tuition, student activity fee) $30,194
* Room (double) $4,536
* Meals (full board) $4,054
* TOTAL: $38,784

Posted by CrankyProfessor at March 19, 2007 7:13 AM