Colby's No Loan Financial Aid Policy

Colby no longer expects its students to borrow to pay College costs. At the start of the 2008-2009 academic year, Colby discontinued assigning loans to the aid packages of students who need financial assistance as determined by the College. Students may still elect to borrow, depending upon personal and family circumstances, but their election to assume loans are entirely their option.

What does this new policy mean to me?
In 2008, all previously "packaged" loans were replaced by grant (gift aid). "Packaged" loans are loans (usually Perkins, Colby, or Canadian student loans) that help to meet the need for aid, as determined by the College. This policy extends the benefits that were offered previously to specific groups of students.

"Packaged" loans do NOT include Stafford, PLUS, or other loans borrowed to reduce the family’s contribution or to address special circumstances. Students whose institutionally calculated needs were met previously without loans will not see an increase in their grants. Students or parents with questions about their particular circumstances may contact Student Financial Services at sfs@colby.edu or 800-723-4033.

Examples:
Class of 2009 2007-08 2008-09
Need for Aid $30,000 $30,000
Grant (Colby, Fed, State) $24,500 $28,150
Perkins Loan $3,650 $0
Work Study $1,850 $1,850
Class of 2010 2007-08 2008-09
Need for Aid $30,000 $30,000
Grant (Colby, Fed, State) $24,500 $28,200
Perkins Loan $3,550 $0
Work Study $1,800 $1,800
Class of 2011 2007-08 2008-09
Need for Aid $30,000 $30,000
Grant (Colby, Fed, State) $24,800 $28,250
Perkins Loan $3,450 $0
Work Study $1,750 $1,750
Class of 2012 * 2007-08 2008-09
Need for Aid N/A $30,000
Grant (Colby, Fed, State) N/A $28,300
Perkins Loan N/A $0
Work Study N/A $1,700
* Prospective Students
Students who are admitted and enroll at Colby, and who qualify for financial aid will receive aid packages that include only student employment and/or grants (gift aid). Colby will not include student loans to help meet the need for aid, as determined by the College. The College will continue to meet full, calculated need for aid, as determined according to the Institutional Methodology and Colby policy. For more information, prospective students may contact Admissions and Financial Aid at admissions@colby.edu or 800-723-3032.

Compared to 2007-08 loan levels, this will mean $14,400 more in grant over the four years of enrollment.

Replacing Student Loans With Grants
Loans-to-Grants FAQ
Can I still choose to take out Stafford and/or Perkins loans if the federal government considers me eligible?
Yes. Some students (and their parents) may choose to take out loans to cover costs such as the parental contribution or books and other expenses.

Will current students who took out loans prior to this year get that money converted to grants?
No. This began with the 2008-09 academic year and is not retroactive.

Will the loan replacement grant in next year's financial aid package be the same amount as the loans in my financial aid package this year?
No. Students reapply for financial aid each year, and the package changes based on factors such as family income, number of family members in college, etc.

Will this affect my student employment?
No. The student employment policy will not change.

Does this mean Colby will admit fewer high-need students?
No. Colby has no intention of changing its admission process because of this initiative.


More information is available in the original announcement and a follow-up release.