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No-Loan Colleges in the US: Full Guide + List

December 14, 2024

A “no-loan” college is just what it sounds like—a school that makes it possible for students to cover their expenses without taking on student loans. Instead of loans, no-loan colleges offer “gift aid,” which includes things like grants, scholarships, and work-study opportunities.

The good news is there are plenty of no-loan colleges out there to explore! Keep in mind, though, that each school has its own rules for who qualifies for this loan-free financial aid, like specific income levels or residency requirements.

In this blog, we describe what a no-loan college and its policy are while providing a list of competitive colleges that offer a no-loan policy. We also provide the things you need to consider before choosing a no-loan college.

What Is a No-Loan College?
Does “No-Loan” Mean Zero Tuition?
Schools with No-Loan Policy Open to All Students
Schools with No-Loan Policy Open to Low-Income Students
Schools with No-Loan Policy Open to In-State Students
Other Ways to Cover Full Financial Need without Student Loans
How to Choose a No-Loan College
Frequently Asked Questions
Takeaways

What Is a No-Loan College?

A no-loan college is a school that helps students pay for their education without relying on student loans.

Instead, they provide financial aid packages made up of grants, scholarships, and sometimes work-study opportunities, so students don’t need to borrow money to cover tuition or other costs. It’s a way to make college more affordable and help students graduate without the burden of debt.

Does “No-Loan” Mean Zero Tuition?

Not necessarily! A no-loan college doesn’t mean there’s zero tuition—it just means the school helps you cover costs without requiring you to take out student loans. They provide financial aid in the form of grants, scholarships, or work-study to help bridge the gap between what you can afford and the cost of attendance.

Most no-loan colleges aim to cover your demonstrated financial need—that’s the gap between the cost of attendance and your Student Aid Index (SAI). Your SAI is calculated using the info you and your parents share on the Free Application for Federal Student Aid (FAFSA).

However, if you have extra costs that go beyond what’s included in your SAI, like fraternity or sorority dues or voluntary extracurricular expenses, you might need to find other ways to pay for those, such as private loans.

Out of 50 schools that say they have a no-loan financial aid policy, only 21 actually meet full financial need with no loans (we will discuss this later on) for every student eligible for federal loans. These schools cover costs for all applicants, no matter their family income or financial need, although some may require you to contribute a minimum amount.

Interestingly, most of the schools offering no-loan aid for everyone are highly ranked, with many landing in the top 10 of their category on U.S. News’ Best Colleges list.

Schools with No-Loan Policy Open to All Students

Right now, only a handful of colleges offer no-loan financial aid policies, but the number is steadily growing. The schools on this list stick to a completely no-loan approach. So, if you apply for financial aid and they determine you have financial need, you won’t have to take out any loans to cover it—that’s all taken care of.

Schools with No-Loan Policy Open to Low-Income Students

These 16 schools limit their no-loan policies to students from the lowest-income families. Each school has its own guidelines, but they usually focus on your household income compared to the federal poverty line and your family’s assets. This helps them figure out your Expected Family Contribution (EFC).

They’ll also look at whether you qualify for Pell Grants, state grants, or welfare programs.

All the details they need come from your FAFSA. Based on that, they decide if you’re eligible for a loan-free financial aid package.

Colgate University. No loans if your family income is below $175,000.
Connecticut College. Reduces or removes loans based on family income—contact them for details.
Cornell University. No tuition contribution or loans for families earning under $60,000 with typical assets.
Dartmouth College. Full tuition covered for families earning $125,000 or less with typical assets.
Duke University. Loan-free for families earning under $40,000.
Emory University. Need-based aid students join the Emory Advantage program to graduate debt-free.
Haverford College. No loans in aid packages for families earning under $60,000.
Lafayette College. Reduces or eliminates loans for families earning under $150,000.
Miami University (Ohio). Grants and scholarships for incomes under $35,000 through Miami Access Fellows.
Michigan State University. The Spartan Advantage covers full tuition, room, board, and books for incomes at or below the federal poverty level.
Rice University. Full scholarships for incomes under $75,000, full tuition for $75,000–$140,000, and half-price tuition for $140,000–$200,000.
Tufts University. No-loan packages for families earning $60,000 or less.
UNC Chapel Hill. The Carolina Covenant ensures debt-free graduation for families at or below 200% of the poverty level.
Washington University in St. Louis. No-loan aid for families earning $75,000 or less.
Wellesley College. No loans for families earning under $100,000.
Wesleyan University. No-loan policy for incomes of $120,000 or less with assets below $400,000; includes U.S. citizens, permanent residents, undocumented, and DACA students.

Schools with No-Loan Policy Open to In-State Students

Staying in-state isn’t just great for saving on tuition—it might also mean no loans! If you’re thinking about sticking close to home, take a look at the no-loan options at these 19 schools:

Arizona State University. Programs like the College Attainment Grant, President Barack Obama Program, and Arizona Promise Program cover tuition and fees for up to four years for Pell Grant-eligible Arizona students.
University of Arizona. The Arizona Assurance Grant provides up to $10,000 per year for four years. To qualify, your family income must be $27,000 or less, with an Expected Family Contribution (EFC) of $0 and Pell Grant eligibility.
University of California (UC) Schools. California residents with a family income below $80,000 and financial aid eligibility won’t pay system-wide tuition or fees.
Fairfield University. The Bridgeport Tuition Grant is available to high school graduates from Bridgeport, CT, with household incomes below $50,000 and typical assets.
Georgia Institute of Technology. The Georgia Tech Promise Scholarship ensures in-state students with incomes below $33,300 can earn a degree debt-free.
University of Illinois at Urbana-Champaign. The Illinois Commitment program covers up to four years of tuition and fees for in-state students with family incomes of $67,100 or less and assets under $50,000.
Indiana University. Indiana residents who meet the income threshold and fulfill the Scholar Pledge in middle school are eligible for the 21st Century Scholarship Program, which covers 100% of tuition and mandatory fees.
University of Louisville. The Cardinal Covenant helps Kentucky residents with household incomes at or below 150% of the federal poverty level graduate debt-free.
University of Michigan. The Go Blue Guarantee covers up to four years of tuition and fees for residents earning $65,000 or less, with assets below $50,000. Partial support is also available for higher incomes.
Appalachian State University. The Murray Family ACCESS Program supports full-time students from North Carolina with household incomes at or below the federal poverty level and an EFC of $0.
Bryan College. The Byron Opportunity Scholarship Program covers tuition, fees, and room and board for residents earning up to $36,000.
University of Tennessee. The UT Promise Scholarship fills tuition gaps after federal, state, and institutional aid for families earning under $60,000 who qualify for the HOPE Scholarship.
Texas State University. The Bobcat Promise offers tuition-free education for first-year students from families earning less than $50,000.
Lamar University. The Lamar Promise Program covers in-state tuition and fees for Texas residents with incomes under $40,000.
University of Texas at El Paso. The Paydirt Promise pays full tuition and fees for families earning $75,000 or less.
University of Texas at Dallas. The Tuition Promise covers remaining tuition after aid for families earning $65,000 or less.
Texas A&M University. The Aggie Assurance Program provides full tuition for students with family incomes of $60,000 or less.
University of Vermont. The UVM Promise ensures tuition-free education for students with family incomes of $60,000 or less.
College of William and Mary. Starting in 2023-24, in-state undergraduates eligible for Pell Grants will receive scholarships covering tuition and fees.

Other Ways to Cover Full Financial Need without Student Loans

No-loan colleges are a fantastic option, but there are also other ways to pay for school without relying on student loans—even when it comes to covering your Expected Family Contribution (EFC).

First, make sure you fill out the FAFSA every year, ideally as soon as applications open. Many grants and forms of loan-free aid are awarded on a first-come, first-served basis, so applying early increases your chances of securing more funds.

Scholarships

Scholarships are another great way to reduce or eliminate your need for student loans. With enough effort, you could earn enough scholarships to fully cover your college costs, making financial aid packages less of a concern.

To maximize your chances, apply for as many scholarships as possible throughout the year. This could help cover your EFC or even your entire tuition.

Jobs or internships

If scholarships and grants aren’t enough, consider getting a part-time job or paid internship. Even if your school doesn’t offer work-study, a job can help offset costs while giving you valuable experience.

Balancing work and school might seem tricky at first, but many students find it manageable once they adjust. Plus, the skills and experience you gain can give you an edge when you’re ready to start your career.

By exploring all your options—including applying to no-loan colleges—you can avoid taking on debt. With the right plan, you’ll graduate with your degree and no student loans to worry about!

How to Choose a No-Loan College

When looking into no-loan colleges, remember that each school defines “no-loan” differently. Some limit the policy to lower-income students, while others require students to contribute a certain amount before the no-loan policy kicks in. It’s super important to read the fine print so you know exactly what to expect.

Also, attending a no-loan college doesn’t always mean college will be free. These schools typically aim to cover the gap between the cost of attendance and your Student Aid Index (SAI). In some cases, it might actually be more cost-effective to choose a school offering a full-ride scholarship over a no-loan college without additional scholarships.

Even at no-loan colleges, students sometimes end up needing loans to cover extra costs. Some of these schools don’t participate in federal student loan programs, meaning you’d have to take out private loans instead. That’s why it’s a good idea to carefully compare all your financial aid offers before deciding.

Lastly, many schools with no-loan policies are among the most competitive colleges in the U.S., so getting accepted is no small feat. Keep this in mind as you plan your college applications and consider a mix of schools that align with your goals and financial situation.

Frequently Asked Questions

1. Which of the Ivy League schools offer a no-loan policy?

Several Ivy League schools offer no-loan financial aid policies. These include:

Harvard University
Yale University
Princeton University
Columbia University
Dartmouth College
University of Pennsylvania

These schools replace loans with grants and scholarships in their financial aid packages for eligible students.

2. Can I still get scholarships despite being accepted to a complete no-loan college?

Yes, you can still apply for and receive scholarships even if you’re accepted to a no-loan college. Scholarships can help cover additional costs that no-loan policies might not fully address, such as books, supplies, or personal expenses.

In some cases, scholarships may even reduce the minimum contribution you’re expected to make. It’s always a good idea to pursue outside scholarships to further ease your financial burden. Just be sure to check how the college handles outside scholarships, as it may affect the financial aid package they offer.

3. What type of loan is best for college students?

The best loan for college students is typically a federal student loan, such as a Direct Subsidized Loan or Direct Unsubsidized Loan. These loans offer lower interest rates, flexible repayment options, and benefits like deferment or income-driven repayment plans. Subsidized loans are ideal if you qualify, as the government pays the interest while you’re in school.

Private loans should only be considered if federal loans and other financial aid don’t cover your costs.

4. Is it possible to get through college and graduate debt-free?

Yes, it’s possible to graduate college debt-free with the right planning and resources. Options include attending no-loan colleges, applying for scholarships, securing grants, working part-time or through internships, and carefully managing expenses. Choosing affordable schools or those with strong financial aid programs can also make a big difference.

Takeaways

Exploring no-loan colleges and alternative funding options provides a look into how students can finance their education without taking on debt.

No-loan colleges help students avoid loans by offering grants, scholarships, and work-study programs instead of debt-based aid.
No-loan colleges don’t necessarily provide free tuition. They focus on covering the gap between the cost of attendance and your financial need.
Each no-loan college has its own rules—some are open to all students, while others are limited to families below certain income thresholds. Some schools may require a minimum contribution from students
Scholarships are still important, even if you attend a no-loan college. They can help cover costs beyond what the school’s financial aid package provides.
Dreaming of attending a top school with no-loan policies? Maximize your chances of getting accepted by working with a college admissions expert.