Dartmouth College eliminating loans from its financial aid packages

Dartmouth College is eliminating federal and institutional loans from its financial aid packages, the university is reporting.

Instead, the Ivy League university in New Hampshire, will replace them with expanded scholarship grants, Dartmouth President Philip J. Hanlon said in a statement.

The policy, Hanlon said, will take place beginning with the 2022 summer term, which starts Thursday.

“Thanks to this extraordinary investment by our community, students can prepare for lives of impact with fewer constraints,” Hanlon said in the statement. “Eliminating loans from financial aid packages will allow Dartmouth undergraduates to seek their purpose and passion in the broadest possible range of career possibilities.” 

Currently, Dartmouth undergraduates from families with an annual income of $125,000 or less are offered need-based aid without a required loan component, according to the university.

For those families with annual income of more than $125,000 who receive need-based financial aid, Dartmouth is removing the loan requirement for undergraduates.

What's everyone talking about? Sign up for our trending newsletter to get the latest news of the day

New Hampshire: Dartmouth College     • Acceptance rate:  9.2%     • Median SAT score:  1500/1600     • Student-to-faculty ratio:  7:1     • Average net price of attendance:  $24,525     • Location:  Hanover, NH

The school estimated the move will decrease debt for hundreds of middle-income Dartmouth students and their families by an average of $22,000 over four years.

The new policy is supported by $80 million from about 65 donors, the school reported.

"Dartmouth already offers generous assistance to students from low-income backgrounds, and this move to a universal no-loan policy will help middle-income families who often have to stretch their budgets to meet the cost of higher education," Director of Financial Aid Dino Koff said in a statement.

Floating restaurant flips:Hong Kong's iconic giant floating restaurant capsizes in South China Sea

Best selling books:USA TODAY's best selling books of the last 10 summers: How many have you read?

The move is part the school's The Call to Lead campaign, which, according to its website, is "a bold invitation to Dartmouth’s global community to engage with the great issues of this century and the next."

Natalie Neysa Alund covers trending news for USA TODAY. Reach her at nalund@usatoday.com and follow her on Twitter @nataliealund.