As one of the nation’s most prestigious learning institutions, Harvard University has announced that it will be replacing student loans with scholarship grants to help students with their financial needs.

In a conference last December 2007, the university disclosed its plans of spending up to $22 million for student financial aid. This is to further help their students with the costs of education, especially now that even students from well-off families are beginning to feel the economic pinch.

This expanded financial aid program aims to reach out to students who come from middle class families; students whose family income ranges up to $60,000 already pay nothing for their education at the university. Students would then be paying only up to ten percent of their total family income for their tuition bills. This would definitely be a great help for students and their families since the average cost of education at Harvard ranges around $45,620 each year, covering tuition, books, and room and board.

According to the Harvard’s financial aid department, funding will be taken from sponsors and donations. This financial aid program is expected to take effect on the 2008-09 academic year.