Princeton will cover all tuition costs for most families making under $100,000 a year, after getting rid of student loans

asheffey@businessinsider.com (Ayelet Sheffey) - Yesterday 

People walk through the Princeton University campus in Princeton, N.J., Thursday, April 5, 2018. AP Photo/Seth Wenig

Princeton announced most families making under $100,000 will not have to pay any tuition costs.

This is expected to benefit about 25% of undergraduate students starting next fall.

Princeton was also the first school in the US to eliminate student loans from its financial aid packages.

Some students might soon get to attend Princeton University for free.

On Thursday, the New Jersey Ivy League school announced it would be expanding its financial aid program to offer free tuition, including room and board, for most families whose annual income is under $100,000 a year. Previously, the same benefit was offered to families making under $65,000 a year. This new income limit will take effect for all undergraduates starting in the fall of 2023.

"One of Princeton's defining values is our commitment to ensure that talented students from all backgrounds can not only afford a Princeton education but can flourish on our campus and in the world beyond it," Princeton President Christopher L. Eisgruber said in a statement. "These improvements to our aid packages, made possible by the sustained generosity of our alumni and friends, will enhance the experiences of students during their time at Princeton and their choices and impact after they graduate."

According to Princeton, about 1,500 students — or 25% of the undergraduate student body — will benefit from this additional aid. Also beginning next year, the University will increase the allowance for personal and book expenses to $4,050 from $3,500 in financial aid packages to allow for more flexibility to cover those miscellaneous charges.



This is just the latest action from Princeton to make its cost of attendance more affordable. In 2001, it became the first school in the US to eliminate student loans from its financial packages and replace them with grants to ensure students do not have any debt to pay back post-graduation.

A growing number of colleges have since adopted the policy. Amherst, Harvard, and Yale have pivoted to offer grants only, and smaller schools and HBCUs have been using stimulus funds from President Joe Biden's American Rescue Plan to wipe out tuition-related student debt for its students.

The switch away from student loans sheds light on the debate in tackling college affordability. At the end of August, Biden took a significant step toward tackling the $1.7 trillion student debt crisis by announcing $10,000 to $20,000 in debt cancellation for federal borrowers making under $125,000 a year. While many advocates and Democratic lawmakers lauded they relief, they emphasized that this cannot be the end of the road when it comes to making higher education more accessible.

"We really need to address the cost and the rising cost of college," Massachusetts Sen. Elizabeth Warren told PBS after Biden announced his loan forgiveness. "And there are a lot of different ways we can do that... I have been working very hard on a piece of legislation that requires more transparency, so the schools actually have to reveal the true cost of going, how many graduate, how long it takes people to graduate, and how much money they make on the other side."