It’s no secret: Going to college is expensive. In 2024, the average 4-year degree at a public college in the US cost $38,270 per year. And even if you receive financial aid, there’s often still a significant gap to cover.
Fortunately, there are colleges that offer complete financial aid packages. These schools ensure that your education costs are fully covered so you can focus on your studies without worrying about student loan debt.
Some colleges even offer a "no-loan" policy. This means they replace loans with grants and scholarships.
In this blog post, we’ll
share information on which colleges offer complete financial aid
explain how these programs work
and help you find the right fit for your needs.
Let’s start by defining a phrase you’ll see often when applying for financial aid: “demonstrated financial need.”
What does “demonstrated financial need” mean?
“Demonstrated financial need” refers to the gap between what your family can afford to pay and the actual cost of attending college. If you have some degree of “demonstrated financial need,” it means that you qualify for financial assistance based on your family's income and assets.
To calculate your demonstrated financial need, colleges look at the information you provide on your FAFSA (Free Application for Federal Student Aid) or CSS Profile.
This assessment ensures your financial aid package is tailored to your unique financial situation, covering the difference between what you can afford and the full cost of attendance.
Understanding this concept is key because it helps you see how financial aid packages are built and how they can make a seemingly expensive education affordable. (For a guide to understanding a college’s “sticker price” vs its “net price,” head here.)
Grants vs work study vs scholarships vs loans
Financial aid packages can include grants, work-study opportunities, scholarships, and loans. Let’s explore each of these elements to help you understand what they mean.
Grants
Grants are financial awards that you don’t have to pay back. They’re usually based on financial need and are provided by the federal government, state governments, or the college itself.
Grants are the most desirable form of financial aid because they reduce the actual cost of your education without adding to your future debt.
Work-study
Work-study programs allow you to earn money while attending college by working part-time, often on campus. These programs provide valuable work experience and help offset the cost of tuition or other expenses.
However, it’s important to note that work-study earnings are not guaranteed, and the amount you can earn is usually capped.
Resource: A Guide to the Federal Work-Study Program
Scholarships
Scholarships are awards based on merit, such as academic achievement, athletic talent, or specific characteristics. Like grants, scholarships do not need to be repaid.
Scholarships can come from a variety of sources, including the college itself, private organizations, and community groups.
Resource: How to Apply for Scholarships: Your Ultimate Guide
Loans
Loans are funds you borrow and must repay with interest after you graduate. Some colleges include federal loans in their financial aid packages to cover the gap between grants, scholarships, work-study, and the total cost of attendance.
While loans can make college more accessible, it’s crucial to understand the amount of debt you might be taking on and how long it can take to pay off.
Interest rates and repayment terms vary, so it’s essential to carefully consider these factors before accepting loans as part of your financial aid package.
Subsidized vs unsubsidized Stafford loans
If you decide to take out federal student loans, you’ll have to determine whether you want to borrow subsidized, unsubsidized loans, or both. What’s the difference? The key difference lies in who pays the interest.
Subsidized Stafford loans are need-based, and the government pays the interest while you’re in school at least half-time, during the grace period after graduation, and during deferment periods. This makes subsidized loans more affordable in the long run.
Unsubsidized Stafford loans are not need-based, and you are responsible for all the interest that accrues from the moment the loan is disbursed. If you don’t pay the interest while in school, it will be added to your principal balance, increasing the amount you owe.
“No-loan” colleges
Some colleges are committed to meeting your demonstrated financial need without including any loans in your financial aid package.
Instead, these colleges offer grants, scholarships, and work-study options to cover the full cost of attendance. Loans may still be available for students who want or need them.
Schools that meet 100% of demonstrated need without loans
For all incomes
For some incomes
“Beginning in Fall 2024, Bryn Mawr College will no longer use loans to meet demonstrated need for students with family incomes below $110,000 and assets under $500,000.”
“Domestic students with a total family income of up to $175,000 (and assets typical for that income range) will be eligible for the Colgate Commitment, an expansion of Colgate's no-loan initiative.”
“Students whose families have a total income of $75,000 or less and reasonable assets will receive a full tuition grant.”
“For the 2024–25 academic year, most families with total annual income up to $75,000 and typical assets will receive aid offers that include grant aid and work-study only—no student loans.”
“To ensure that students from low- to middle-income backgrounds can afford a Dartmouth undergraduate education, those students whose families have a total annual income below $125,000 can expect to receive a financial aid package that includes no responsibility for a parent contribution, provided their assets are typical for this income range.”
Students with family income below $40,000 per year receive financial aid packages that do not include loans.
“Students with family income below $60,000 per year will not have a loan expectation included in their financial aid package; loan expectations for incomes above this threshold remain low, ranging from $1,500 to $3,000 each year.”
“Beginning with students entering the College in the 2024-2025 academic year, we will replace federal loans with grants for domestic students with a total family income $200,000 or less and with typical family assets for their income levels.”
“100% of undergraduate students from families with a total income of less than $75,000 are eligible for a full tuition grant.”
“Students with annual family incomes of less than $60,000 will typically receive a financial aid package that includes no student loans. In these cases, Tufts will meet 100% of demonstrated need with only grant aid and work study funding.”
University of North Carolina at Chapel Hill
“The Carolina Covenant is a financial aid package and network of support that provides an opportunity for students who qualify to attend and graduate from UNC-Chapel Hill debt-free.
Carolina Covenant Scholars are from families with a total income that is at or below 200% of the poverty guideline and who meet additional economic criteria to qualify.”
“Vassar meets 100% of each student’s demonstrated financial need with a personalized award package.
By drawing upon a variety of resources, offering generous scholarships, and eliminating loans for low-income families.”
“Eliminates loans for students with the greatest financial need: those with a calculated family contribution of less than $28,000 and income less than $100,000.”
100% of need with loans
There are also some schools committed to meeting 100% of demonstrated financial need but include loans as part of the financial aid package. While these schools provide significant financial support, they expect you to take on some debt to cover the cost.
Your financial aid package will still include grants, scholarships, and work-study. But federal student loans will help fill the remaining gap.
Final thoughts on colleges that offer complete financial aid
Attending a four-year college is undoubtedly a significant financial commitment. But thanks to a number of schools that offer complete financial aid, you may be able to graduate without the burden of overwhelming debt.
Just make sure to research your options thoroughly and apply for financial aid early to ensure you’re eligible for the best possible packages.
Need more advice on how to approach paying for college? Check out this guide next: Crash Course on How to Pay for College (Using as Little of Your Own Money as Possible).
Special thanks to Ameer for writing this blog post
Ameer is a freelance writer who specializes in writing about college admissions and career development. Prior to freelancing, Ameer worked for three years as a college admissions consultant at a Hong Kong-based education center, helping local high school students prepare and apply for top colleges and universities in the US. He has a B.A. in Latin American Studies from the University of Chicago and an M.A. in Spanish Linguistics from UCLA. When he’s not working, Ameer loves traveling, weight lifting, writing, reading, and learning foreign languages. He currently lives in Bangkok, Thailand.
Top values: Growth / Diversity / Empathy
