By Rich Larson
Carleton College will eliminate student loans from all need-based financial aid packages beginning with the 2027-28 academic year, placing the Northfield school among a small group of colleges nationwide offering financial aid without requiring students to borrow.
Carleton President Alison Byerly announced the new policy Monday during the college’s Opening Convocation. The change will apply both to students entering Carleton in the fall of 2027 and to continuing students.
Currently, 57 percent of Carleton’s approximately 2,000 students receive need-based financial aid. Under the new policy, the college will continue to meet 100 percent of each student’s demonstrated financial need, but federal and institutional loans will be replaced with grants and scholarships. Financial aid packages may also include student employment.
For the 2026-27 academic year, Carleton’s average financial aid award is nearly $72,000. The average debt for members of the Class of 2025 who borrowed was $21,075 at graduation, according to the college.
Carleton says the new policy will make it the only Minnesota college meeting 100 percent of demonstrated financial need without including loans in its aid packages.
Nationally, Carleton will join a relatively small group of institutions that have adopted similar policies. Princeton University meets full demonstrated need through grants rather than loans, while Grinnell College in Iowa also meets 100 percent of demonstrated need without loans. Dartmouth College, Smith College and Washington University in St. Louis are among other institutions offering no-loan financial aid.
Carleton’s policy is being supported by more than $80 million in commitments made by alumni, friends of the college and members of its Board of Trustees during the past ten months. The college plans to raise another $48 million for its financial aid endowment to sustain the program long-term.
The change is expected to have a particularly significant impact on middle-income families, who may qualify for need-based assistance but have traditionally been expected to borrow part of their financial aid package.
Carleton officials say eliminating that debt could also give graduates more flexibility when considering careers, graduate school and other opportunities after college.
Rich Larson is the owner and General Manager of KYMN Radio. Contact him at rich@kymnradio.net.
