Saving Students from Debt

Recent developments at America's top colleges and universities indicate that there's a new school of thought when it comes to helping students pay for higher education. Today, funds are being rewarded less on academic merit and more on financial need.

High school students (and their parents) have always dreamed of getting a merit-based scholarship to finance a college education. The alternative was to either scrape together enough money to pay for college, or get need-based financial aid and student loans. The end result was usually extensive debt on graduation day. The textbooks on this traditional system are being rewritten, however, much to the delight of lower-income students.

Grants and work-study over loans

One bold initiative has been taken by Davidson University, an independent college near Charlotte, North Carolina. To prevent students from graduating college saddled with debt, the school has announced that it will be offering grants and work-study dollars instead of need-based loans. The move is designed to allow students to pursue post-college opportunities without having to make decisions based on debt.

Merit-based scholarships losing favor

Another trend underway is the elimination of merit-based scholarships. George Washington University (Washington, D.C.) and Hamilton College (Clinton, NY), both mindful of the growing number of lower-income college bound students, are working to limit or eliminate the grants given to students already capable of affording the tuition. The schools want to retain a reward system for outstanding academic achievement, however, and will most likely retain some merit-based rewards.

No contribution required

Joining the bandwagon are some of the nation's most prestigious-and costly-schools, such as Harvard and Yale. They have simply stopped requiring lower-income families to contribute to the cost of attending. The University of North Carolina at Chapel Hill has taken similar actions, despite the fact that it's a state institution.

The actions of the top learning institutions indicate the recognition of the changing demographic of America. With growing numbers of lower-income students and ever-increasing tuition costs, the need to make higher education affordable has never been so critical. These bold new approaches by universities and colleges are terrific developments for college students. It could foster a whole new generation of graduates who are ready to focus their energies on improving the world instead of paying off their student loans.