President Roth announced on Thursday Nov. 1 that the University will replace loans with grants for its neediest students, as part of an initiative to reduce student debt by 35 percent and increase access for students who come from high-need socioeconomic backgrounds.
With an annual $35.4 million budgeted for undergraduate grant aid, currently 40 percent of enrolled students receive grant aid, with an average award of $27,151. 13 percent of the Wesleyan student body qualify for Pell grants, which are awarded to those who demonstrate the highest levels of financial need. Loans will be eliminated for students whose family incomes are $40,000 or less, beginning with the class of 2008.
Roth, who said that over $10 million has already been raised from conversations with donors, has pledged to raise the endowment to cover the annual $3.2 million cost.
Not only the upcoming class of 2008 will be affected by the decision — by Fall 2008, all other enrolled students on aid will have their debt reduced by an average of 35 percent, funded by single student loans and Stafford Federal Loans.
The decision follows similar steps taken by institutions such as Harvard and Williams to eliminate loans for its neediest students.
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