Wellesley College Boosts Grants, Ends Loans for Some (Update2)

By Brian K. Sullivan

Feb. 7 (Bloomberg) -- Wellesley College will replace loans with grants for students from families earning less than $60,000 a year as it competes with other U.S. schools for applicants.

The women's college in Wellesley, Massachusetts, also will increase grants by one-third to families with incomes from $60,000 to $100,000, according to a statement today. The policy takes effect in August, said the college, which has an endowment of $1.7 billion and counts New York Senator Hillary Clinton among alumni.

Wellesley's move puts it among more than 30 U.S. colleges and universities that have excluded loans from some financial- aid awards. Harvard and Yale universities have announced increases in aid for students from families earning as much as $200,000.

``This new policy is a sound investment of our resources and consistent with our institutional commitment of making Wellesley education accessible and affordable for students regardless of their financial situation,'' Kim Bottomly, president, said in the school's statement.

The change will increase Wellesley's annual financial aid spending to about $40 million, which comes directly from its endowment, the college said.

Wellesley caps four-year student loan debt at $12,825. The new grants mean students from families earning from $60,000 to $100,000 will graduate with no more than $8,600 in loans.

Wellesley's tuition, board and other fees this year total $45,820, according to its Web site. The average grant package is $28,364, the college said. About 55 percent of students receive aid.

Wellesley said about 29 percent of its 2,300 students come from families with annual incomes less than $60,000 and an additional 31 percent are from families below $100,000.

To contact the reporter on this story: Brian K. Sullivan in Boston at bsullivan10@bloomberg.net .

Last Updated: February 7, 2008 16:34 EST

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