Help for middle class households. Decreasing college loan burden of students and parents. They are a few the factors given by colleges and universities for creating “No Loan” monetary aid policies. Institutions of higher education instituted these economic aid policies, which completely fund economic have to have of families with AGIs below institutionally prescribed caps without requiring or providing student or parent loans. The AGI caps differ from college to college. The revenue caps might be set at anywhere from $50,000 to $120,000. Colleges achieved these “No Loan” objectives by utilizing institutional grants and scholarships in conjunction with federal grants, scholarships and workstudy. The institutional funds typically drawn from endowments.

Up till several years ago there had been fairly couple of such programs. And though, these programs have enhanced in quantity, they’re nonetheless not widely available at most colleges or universities. “No Loan” programs are discovered typically at elite and selective colleges with healthy endowments. Most colleges never have that luxury.

The reputation of “No Loan” economic help applications started in earnest about three years ago in response to criticism from Congress regarding the substantial endowments a lot of of those institutions held. As tuition expenses rose and endowments grew with a strong stock market place, Congress felt that universities have been holding too much funds in their endowments. It questioned why far more of those funds weren’t put towards economic aid or made use of to reduce tuition. There have been threats of Congressional evaluations of and potential federal regulation of endowments.

Regardless of the growing reputation of such applications by elite and selective colleges, a lot of students and households have been unaware of them. Regrettably, there has been much less interest in initiating “No Loan” financial help policies at other institutions. And together with the economy in a slide and endowments suffering huge losses in fiscal year 2009, colleges and universities are now reviewing, revising and reversing these policies.

The 2009 NACUBO (National Association of College and University Business enterprise Officers) Commonfund Study of Endowments ranked the endowment losses in fiscal year 2009. The following institutions knowledgeable the greatest losses in endowment dollars.

1 Harvard University: ($10,894,229,000.00) or -29.8%

two Yale University: ($6,543,000,000.00) or -28.6%

3 Stanford University: ($4,595,279,000.00) or -26.7%

four University of Texas Method: ($4,008,135,000.00) or -24.8%

5 Princeton University: ($3,735,016,000.00) or -22.8%

six Northwestern University: ($1,798,688,000.00) or -24.8%

7 Duke University: ($1,682,998,000.00) or -27.5%

eight The Texas A&M University Technique and Foundation: ($1,575,598,270.00) or -23.7%

9 University of Michigan: ($1,571,075,000.00) or -20.7%

ten University of Chicago: ($1,538,224,000.00) or -23.2%

Earlier this year, Williams College in Amherst, Massachusetts, ended its “No Loan” policy. Lafayette College, in Easton, Pennsylvannia, has reviewed its economic help policy. While it retained the “No Loan” policy for families with AGIs below $50,000, the loan limit was raised for students with family AGIs of between $50,000 and $100,000. These families are now expected to borrow $3,500 a year up from $2,500 a year. Dartmouth College in Hanover, New Hampshire is on record as considering revamping its “No Loan” monetary help policy.

So while there are a number of colleges and universities that nevertheless have “No Loan” financial aid policies, if you are considering one of those schools, be sure to question the future status in the policy and make your college decisions knowing that there is a good possibility that the program will be eliminated. If the program is eliminated, you will require to rely on federal or private student loans. So be forewarned and prepared.