Oberlin College has announced that they are eliminating all loans for students who receive Pell grants and replacing the loans with grants. Pell grant recipients typically come from low income families making less than $35,000 a year. About 12% of Oberlin’s 2,800 students receive Pell grants.

Although Oberlin’s move will effect a limited number of students it is an innovative way to use limited resources to improve the financial aid package of those students least able to afford college. Hopefully more colleges will continue the trend of improving the financial aid available to their students.