Home Finance Some Schools Are Doing Away With Student Loans

Some Schools Are Doing Away With Student Loans


Americans today are leaving college with more student loan debt than they had in the past. Michael Bloomberg is the former mayor of New York City. He recently stated that he will donate $1.8 billion to John Hopkins University, which is his alma mater.

Americans have more student loan debt than credit card or auto loan debt. According to Mark Kantrowitz works for SavingforCollege.com. He stated that there are 300 colleges that are large enough to have a no-loans policy. There are currently 70 schools that have adopted this policy.

Mark said that Michael’s donation will encourage more colleges to adopt a no-loan policy. There are also schools that allow people to attend school tuition-free. However, some students still end up in debt if they go to a tuition-free school. They end up having to take out a loan to cover their living expenses. People who graduate from a tuition-free or no-loan school still graduate with less debt.

Princeton University has been a no-loan school since the 1990s. In fact, it is one of the first schools to offer a no-loan policy. It is estimated that 80 percent of the students graduate without any debt. The average debt is only around $9,000. The following states have no-loan schools.

  • Arizona
  • California
  • Colorado
  • Connecticut
  • Florida
  • Georgia
  • Illinois
  • Indiana
  • Iowa
  • Kentucky
  • Maine
  • Maryland
  • Massachusetts
  • Michigan
  • Minnesota
  • Missouri
  • New Hampshire
  • New Jersey
  • New York
  • North Carolina
  • Ohio
  • Pennsylvania
  • Rhode Island
  • Tennessee
  • Vermont
  • Virginia
  • Washington

There are some colleges that allow all students to take part in the no-loan policy. Others only give this option to low-income students.