Colby is one of the prestigious schools to eliminate loans from financial aid packages. “‘Eliminating loans, says Stephen Collins, a Colby spokesman, ‘may have been a bigger step for Colby, but we want this place to be affordable to lower-income students.’ Its program will cost it $1.5 million a year, financed in part by double-digit returns on its $600 million endowment and a $50 million fund-raising campaign.”

http://www.nytimes.com/pages/education/edlife/index.html

See also:
Graphic: “Tuition free, Loan Free, Debt Free

The (Yes) Low Cost of Higher Ed