Twenty-five years of transformative financial aid

Princeton University made history in 2001 when it became the first university in the country to eliminate loans from its financial aid packages. The decision also changed higher education as other colleges and universities followed Princeton’s lead in replacing loans with grant aid that does not need to be repaid. 

In the 25 years since then, more than 20,000 students have benefited from Princeton’s generous financial aid. Nearly 90% of Princeton students now graduate debt-free, freeing them to pursue lives of leadership and service without worries about loan payments — recent alumnus Matthew Trotter among them.

Trotter is from the tiny town of Union Dale, Pennsylvania. He graduated from Princeton in 2022, became an M.D. at Sidney Kimmel Medical College and is now a family medicine resident at Jefferson Abington Hospital outside of Philadelphia. He hopes to focus his career on medical education and serve rural communities like his hometown. 

Attending medical school without the burden of paying back undergraduate loans was a huge weight off his shoulders, Trotter said. 

“Princeton’s financial aid package was something I couldn’t get and didn’t get from other schools I applied to,” he said. “It was a promise to set me up for success and for my parents not to have to worry about the cost of my education.”

Class of 2024 alumnus Jackie Namala was also able to follow her dream of returning to serve her community in the Bronx — in her case as a middle school math teacher.

“Princeton gave me so much and I’m always thinking about how I can give back,” said Namala, who worked with high school students in Rwanda during a Princeton in Africa fellowship last year and began teaching this year at a charter school in the South Bronx. 

“I’ve always been interested in how to ensure that people have access to a quality education,” she said. 

Continuing to lead in financial aid

In the 25 years since the historic 2001 no-loan decision, the average out-of-pocket cost to attend Princeton has increased by only $2,059 for all students (including those not receiving aid) — from $22,577 in 2001 to $24,636 in 2026 — as the University has expanded its pioneering aid program for students from lower-, middle-class and upper-middle-class backgrounds. 

Princeton’s financial aid program continues to be one of the most generous in the country.

“We are incredibly grateful for the University’s generous aid policies as we recruit and select the first-year and transfer classes,” said Dean of Admission and Financial Aid Karen Richardson. “Knowing that a Princeton education is affordable allows potential applicants and their families to truly see themselves as part of the campus community without the burden of excessive debt upon graduation.”

Under Princeton’s aid program, most families with incomes up to $150,000 receive aid to cover the cost of attendance, including tuition, housing, food, books and personal expenses. 

Most students from families with incomes up to $250,000 receive aid to cover the full cost of tuition, and many families living in the U.S. with incomes up to and even beyond $350,000 receive grant aid, including those at higher income levels with multiple children in college.

Because Princeton meets 100% of demonstrated financial need with grants that do not need to be repaid, students often find Princeton is less expensive than state colleges and universities. 

Looking ahead

In 2024, the University’s Board of Trustees set aggressive new enrollment goals for low- and middle-income students, aiming for an undergraduate student body that is at least 70% eligible for need-based financial aid and at least 22% Pell Grant eligible.

As of this fall, 70% of the undergraduate student body receives aid, and 30% pay nothing to attend. In the first-year Class of 2030, approximately 25% of the class are lower-income students eligible for federal Pell Grants. 

The University’s nation-leading financial aid means the transformative power of a Princeton education remains affordable to talented students from all backgrounds. 

“Financial aid allowed me to make Princeton a home,” Trotter said. “It’s a place where I made my closest friends. It’s a place I love to go back and visit. None of that would have been possible for me without the generosity of financial aid.”

Looking toward the next 25 years and beyond, Princeton is committed to sustaining its generous financial aid program, which is supported by the University endowment and the generosity of alumni and others. The University recently launched the Talent Initiative focused on raising funds for endowed scholarships and fellowships, which is part of Venture Beyond, a series of initiatives advancing strategic University priorities.