A Typology of Institutional Loan Replacement Grant Initiatives for Low- and Moderate-Income Students

In recent years, growing numbers of four-year institutions have implemented a new type of need-based financial aid policy directed toward low- and middle-income students. These initiatives—referred to here as Loan Replacement Grant (LRG) programs—greatly reduce or eliminate loans in student aid awards and replace them with grants. This paper establishes a LRG definition, summarizes 64 currently active programs, then classifies them according to a typology developed through an analysis of programmatic characteristics, producing eight distinct types. Presentation of the LRG definition, program specifics, and typology act to organize these proliferating need-based initiatives and will facilitate future research.