And there’s no better example of that than Princeton University. Perhaps its strongest points are its financial aid policies and the remarkable ROI (return on investment) that its graduates enjoy. For the 2025-26 academic year, that same university has already announced its tuition will be $65,210. Students from families making $200,000 or below will have no tuition cost, ever. Plus, it will cover housing and meal costs for participants from families earning $100,000 or less.
The new initiative underscores Princeton’s long-standing commitment to educational accessibility and affordability. In the 2023-24 academic year, students who are awarded financial aid can expect an average net price of $10,555. This method makes sure that the university, in turn, is accessible to all students, not only the well-off ones.
Princeton’s “no-loan” policy established by Princeton in 2001 is part of a growing movement among colleges to take on more responsibility for financing their students without loans. This plan allows students to go to college without taking on debt. It responds to one of the most urgent issues facing American families today. Since its implementation, the policy has influenced numerous institutions across the country, leading many to adopt similar approaches to financial aid.
The effects of Princeton’s generous program can be seen in its student body, having helped nearly 10,000 students over the past decades. The university meets 100 percent of financial need for students, defined as the cost of attendance. This really shows its deep, abiding commitment to creating the best possible equitable educational experience.
The value of a degree from this highly competitive university is reflected in the economic results for Princeton grads. Graduates earn a median of $110,066 ten years after leaving the university, translating to an incredible ROI. This quality of income ranks Princeton near the very top of all highly selective universities for post-graduate earnings.
The university’s financial aid policies are especially remarkable when one takes into account their whopping $49 billion endowment and the frequent support from rather rich donors. These elements allow Princeton to provide significant aid beyond that of most other private universities. The combination of high-quality education and robust financial support creates an environment where students can thrive academically without the looming burden of student debt.
Beyond the short-term financial impact, Princeton’s efforts help create a more diverse and welcoming environment for all students. By removing these financial burdens, the university is able to recruit talent from all socioeconomic backgrounds, enhancing the overall educational experience for all students.
Princeton’s aggressive approach to financial aid would strike a positive chord with families across the income spectrum who experience the rising costs of a college education. As tuition prices rise nationally, Princeton’s model provides a compelling alternative for those seeking a top-tier education without excessive financial strain. By covering essential costs and offering a no-loan policy, Princeton sets a benchmark for how universities can support their students.
What’s more, more institutions are realizing the value of initiatives like these. As such, Princeton’s policies are poised to have an even broader impact. The adoption of “no-loan” policies has become quite trendy. This precedent-breaking move paints a new picture of the federal treatment of student debt and financial responsibility in higher education.