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Video related to this article is available below.Issue date: 3/27/07 Section: News
Financial Aid: Revamped packages reach out to middle-income families
$60,000 no-loan program to target 'high-need' students was unforseen last spring
Heather Schwedel
In the University's quest to increase access to a Penn education, middle-income students are the next frontier.
Last week, the University's Board of Trustees approved a financial aid initiative that will provide loan-free aid packages to all students from families whose incomes fall below $60,000 per year.
"We're creeping [the threshold] up so that we get some of the middle-income students as well," said Bonnie Gibson, vice president of the Office of Budget and Management Analysis.
Gibson said middle-income families can be some of the "most squeezed" when it comes to affording college tuition.
The 2005 U.S. Census placed the country's annual median household income at $46,326. For households with two income earners, it was $67,348.
By increasing the initiative's threshold to $60,000 for the 2007-2008 academic year, officials hope that Penn will be able to extend the program's benefits to students who do not qualify as socio-economically disadvantaged.
This initiative gives a boost to the financial aid policy the University announced last spring, which replaced loans with grants for students with family incomes below $50,000.
Penn Executive Vice President Craig Carnaroli said that with this year's and last year's initiative, "we're trying to basically signal the affordability of Penn."
Carnaroli said Penn did not have this year's increase planned when officials announced last year's initiative.
Instead, the increase was the result of strong endowment performance over the past year.
Still, the University's $5.9 billion endowment lags behind some of its peers', meaning that much less of Penn's financial aid funds can come from endowment.
Carnaroli said that "it would be premature" to expect another increase next year. He added that, because the University has a need-blind financial aid policy, its long-term goal is to reduce Penn students' overall average debt burden.
Penn's renewed commitment to middle-income students follows initiatives with similar goals at some of the University's peer schools.
Last week, the University's Board of Trustees approved a financial aid initiative that will provide loan-free aid packages to all students from families whose incomes fall below $60,000 per year.
"We're creeping [the threshold] up so that we get some of the middle-income students as well," said Bonnie Gibson, vice president of the Office of Budget and Management Analysis.
Gibson said middle-income families can be some of the "most squeezed" when it comes to affording college tuition.
The 2005 U.S. Census placed the country's annual median household income at $46,326. For households with two income earners, it was $67,348.
By increasing the initiative's threshold to $60,000 for the 2007-2008 academic year, officials hope that Penn will be able to extend the program's benefits to students who do not qualify as socio-economically disadvantaged.
This initiative gives a boost to the financial aid policy the University announced last spring, which replaced loans with grants for students with family incomes below $50,000.
Penn Executive Vice President Craig Carnaroli said that with this year's and last year's initiative, "we're trying to basically signal the affordability of Penn."
Carnaroli said Penn did not have this year's increase planned when officials announced last year's initiative.
Instead, the increase was the result of strong endowment performance over the past year.
Still, the University's $5.9 billion endowment lags behind some of its peers', meaning that much less of Penn's financial aid funds can come from endowment.
Carnaroli said that "it would be premature" to expect another increase next year. He added that, because the University has a need-blind financial aid policy, its long-term goal is to reduce Penn students' overall average debt burden.
Penn's renewed commitment to middle-income students follows initiatives with similar goals at some of the University's peer schools.
Viewing Comments 1 - 3 of 5
Yale has it right......
posted 3/27/07 @ 7:01 AM EST
"Yale's policy for low-income students eliminates parental contribution for all students from families with incomes below $45,000, but students may still receive packages including loans. (Continued…)
JD
posted 3/27/07 @ 9:58 AM EST
when will Penn (and other schools) begin to take geographical cost of living into the equation when computing financial aid?
wasn''t complaining that I had to pay....
posted 3/27/07 @ 10:56 AM EST
....was complaining that one kid is taught the reponsibility of contributing and another isn't. Like I said, Yale has its priorities straight. It helps families who can't afford to go and teaches ALL kids responsibily at the same time, regardless of their families EFC. (Continued…)
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