Some colleges have started programs to help students ease or eliminate student debt as pressure builds in Washington to help them afford the rising costs of school. Several colleges have eliminated loans from all financial-aid packages beginning next school year and replace them with grants and student employment contracts.

Other schools have provisions in place dictating who is able to obtain loans and who is eligible for other benefits. For example, Emory University is eliminating loans for undergraduate students whose families earn less than $50,000 per year, while capping total loan volume at $15,000 over four years for families with income up to $100,000.

Typically, schools will assess family income and assets to come up with an “expected family contribution”. This is subtracted from the expected contribution from the total cost of attendance – tuition, fees, room and board and other expenses – to come up with how much “need” there is for a given student. A financial aid package is then devised to meet this need, which is typically a combination of loans and grants. The new provisions will replace these loans with an all-grant package.

These initiatives are being financed through endowments, but many colleges plan on cutting down on non-academic spending in order to raise new funds. The move also comes after Congress has begun encouraging universities to start dipping into their endowments instead of simply reinvesting the money in global markets. Combined, many are hoping that these provisions will help lessen the burden on students that are struggling to get under a cloud of debt.