DAVIDSON, N.C. — A $15 million investment by The Duke Endowment will help Davidson College do away with student loans and instead offer grants to its financially needy students.
The new approach to financial aid, which begins this August, aims to boost the enrollment of students from lower- and middle-income families, and allow students to graduate debt-free.
Davidson’s hefty $40,000 all-inclusive pricetag has been a deterrent for some applicants, the school says, and it hopes the new approach will encourage eligible students to apply, regardless of their financial situation.
This new approach will serve the school well in the future, it says, given that population projections point to an increasing number of college-bound students from lower-income families.
Davidson will spend $3.5 million a year for the next four years on the effort, and the school says it is committed to raising the $70 million necessary for an endowment.
Davidson is the first national liberal-arts college to do away with student loans from its financial aid packages, the college says.