The average four-year student debt load for students attending U.S. colleges and universities is about $20,000. College and universities have recognized that debt, or anticipated debt, is a major barrier to access for low-income students. Some colleges and universities, in an effort to increase access for low-income students, are finding creative ways to finance a college education so that students graduate debt free.

Who Generally Qualifies for "Debt-Free" Education?
Generally, "debt-free" financing programs are targeted to students from low-income families--families with an adjusted gross income (AGI) of $50,000 or less or families with an AGI between 150 and 200 percent above the U.S. poverty line.

How Can Colleges Provide "Debt-Free" Financing?
Loans--federal, state and other/alternative loans--typically make up about 60 percent of the financial aid provided to students at U.S. colleges and universities. But, colleges and universities have many options available in terms of how they award aid and which students receive which types of aid. Colleges and universities focused on providing "debt-free" financing to low-income students will prioritize grant and scholarship funding processes so that these students are the first on the list to receive this aid.

Which U.S. Colleges Have "Debt-Free" Programs?
Colleges and universities with "debt-free" programs for students from low-income families include:

• Rice University
  
• The University of North Carolina at Chapel Hill
  
• University of Virginia
  
• University of Pennsylvania
  
• Princeton University and
  
• Columbia University (beginning with Fall 2007).

Other U.S. colleges and universities have instituted loan caps or have removed the requirement for a parental contribution to educational costs for students from low-income families.

For more information on federal, state or other financial aid opportunities or to find out if the college or university you want to attend offers any of these special financing options, contact the financial aid office on the college or university campus.

Until next time!

Lynn Byrne

Preparing for college admissions? Trying to find direction? Need a little help with the planning? Check out my college planning series:

• College Planning Made Easy--the planning and preparation workbook for the take charge, college-bound student,
  
• Paying for College Made Easy--a college financing guide designed to assist students and families in preparing and planning for higher education expenses; and
  
• The Great Scholarship Search--my guide for students and parents researching and applying for scholarship funding.