Penn President Amy Gutmann recently announced the following initiative:

Today we are announcing a far reaching new financial aid initiative that will eliminate loans for financially eligible undergraduate students regardless of family income, making it possible for students from a broad range of economic backgrounds to graduate debt-free.

Penn's new program is the latest step in our efforts to widen access for students from all economic backgrounds, by expanding our no-loan program from low and lower-middle income families to include middle and upper-middle income families.

This new program will begin in September 2008, and include all eligible undergraduates, not just entering freshmen. Effective that year, students with calculated family incomes under $100,000 will receive loan-free aid packages, while families above that level will receive a 10 percent reduction in need-based loans.