FREQUENTLY ASKED QUESTIONS

Why is Vanderbilt doing this?

Vanderbilt's commitment to accessibility and affordability for admitted students is not new. For the past seven years, Vanderbilt has made debt-reduction a top priority, and this new initiative — to replace all need-based undergraduate student loans with grant and scholarship assistance — caps the university's important long-term focus on accessibility.

Reducing undergraduates' education-related debt is the right thing to do. When barriers to a Vanderbilt education can be reduced or eliminated, every student benefits from a learning community that includes talented, qualified individuals from all backgrounds.

When will this take effect — and who will benefit?

All undergraduate students (new and returning) who would have normally received need-based loans as part of their financial aid package to meet their demonstrated financial need will qualify for this program starting in the 2009-2010 academic year. In addition, all seniors slated to graduate in May 2009 will have their need-based loans for the spring 2009 semester replaced with Vanderbilt grant/scholarship assistance.

What about current students who have loans?

This same program will also be provided to all undergraduate students who are enrolled in the 2009-2010 academic year.

It is also important to note that Vanderbilt has already made targeted investments to significantly reduce student loans as part of its financial aid packages for all of our current undergraduates. These students are the beneficiaries of a debt reduction program that began in 2001, which has resulted in a decrease of average indebtedness by approximately 17% at graduation. This has occurred while the cost of attending Vanderbilt has increased approximately 5% annually. It is simply not possible to implement this initiative retroactively across all classes of undergraduates.

(For information on how this initiative will impact a specific financial aid award, contact the Office of Student Financial Aid at finaid@vanderbilt.edu.)

Will Vanderbilt remain need-blind in its admissions practices?

Absolutely. Vanderbilt considers students for admission based on ability and talent. Financial circumstances are not considered. That has been the case in the past, and will continue to be the case.

A college education has great value — so why is it such a bad thing to take out some loans for something so important?

Substantial debt for new college graduates can limit their potential. The prospect of re-paying student loans can lead some accepted students to decline their offer of admission from Vanderbilt, even when Vanderbilt was their first choice. Also, undergraduate students with significant loan debt will often abandon dreams of future studies in graduate or professional school, or forego particular career choices. The need to pay off need-based student loans can become a real barrier to a desire to teach, or practice medicine in an underserved community, or work in a non-profit or service agency — among many other career choices.

It is important to note that this initiative doesn't make Vanderbilt cost-free. While Vanderbilt will replace need-based loans with grants/scholarships in financial aid packages, there will still be an expected family contribution for most students. Some families will choose to meet this contribution with loans. Likewise, some students may choose to take out loans to replace the work portion of their financial aid packages.

How much will this initiative cost?

The additional annual cost of this expanded aid initiative will level off at approximately $14.7 million once fully implemented for all undergraduate students. This is over and above the funding Vanderbilt already provides for undergraduate assistance.

How is Vanderbilt paying for this?

The additional funding for this expanded aid initiative will come from a combination of strategic internal allocations and increased scholarship endowment. Specifically, Vanderbilt will seek $100 million in new gifts and pledges for scholarship endowment as part of the university's ongoing Shape the Future campaign.

How will this initiative affect admission to Vanderbilt? What about legacy applicants — children and grandchildren of Vanderbilt's alumni?

Interest in Vanderbilt continues to grow every year, with a corresponding rise in the number of applications. It is realistic to expect that this initiative will bring increased interest — especially from young people who may not have thought they could afford to attend Vanderbilt in the past.

Each candidate for admission will continue to receive a holistic review, based on a wide range of factors, including academic performance, test scores, extracurricular activities, essays, personal statements, and letters of recommendation. Our comprehensive, holistic approach to the admissions process will not change with this initiative.

Vanderbilt alumni and their families are valued members of the Vanderbilt community. The university views legacy status as one of the many factors considered in Vanderbilt's holistic review process.

This initiative is about financial need — but what about merit scholarships that are only based on academics and credentials? Isn't that important to attract the best students to Vanderbilt?

Vanderbilt attracts many of the best students in the country, and many of them have some level of financial need. In fact, just as the overall quality of our entering classes has increased dramatically, so too has the percentage of students with financial need. While merit scholarships will continue to be awarded, need-based funding sources provide Vanderbilt with the ability to enroll students with exceptional credentials and financial need.

How can I help support this initiative?

Annual gifts from Vanderbilt alumni, parents, and friends create the kind of learning environment that draws so many talented young people here — and helps Vanderbilt sustain and advance the university's quality. And unrestricted gifts — generosity that is put to work right away for daily needs and priorities — help support all of the university's and the schools' priorities: scholarships/financial aid; excellent teaching; research opportunities; new courses and curriculum.

We've got a number of ways to support scholarships specifically that can make a real and immediate difference for our students. Each of our undergraduate schools as well as the general university has a fund for annual scholarship gifts. And if you can consider a larger gift, you can help Vanderbilt increase its scholarship endowment, so that generations of future students will benefit from your giving.

(To learn more about making a gift to support Vanderbilt and this initiative, contact thevanderbiltfund@vanderbilt.edu.)