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Many private colleges in America last year have shelved construction projects, resorted to laying off staffs, turned down thermostats and even slashed sports teams in spite of the fact that there was a steady flow of student financial aid.

As the economy weakened significantly, some of these institutions are forced to retract steps and reduce the financial aid that has been doubled and tripled last decade in order to reduce student debts and attract more applicants.

Williams and Dartmouth, two of the most prestigious colleges of the nation have recently cut back on aid packages. This has severely affected students of lower income group access to education without taking out an educational loan.

Many other private colleges and schools will be forced to follow their footsteps making it necessary for a lot of middle class students to take on debt. Experts say that even as there will be an increase of four to six percent in tuition fee, private schools will definitely be cutting down on financial aid.
National Association of Independent Colleges and Universities public affairs vice president Roland King says that a lot of panic resulted in increase of aid by many colleges. This year will however be more austere.

In the wake of recession, sweeping cutbacks were announced by Hanover based Dartmouth College. A projected budget gap of $100 million is proposed to be closed by laying off staff members numbering 76. While the school will help offset increase in tuition fee by increasing financial aid by ten percent, there will be no loan free aid on offer for all income level students starting from fall 2011.

Just a week earlier, a private liberal arts school, Williams College announced a no-loans policy from 2011 fall. Other elite schools including Amherst College stick to their no-loan policies for now. There has been a doubling of low income student enrolment here in recent years mainly through international students and community colleges transfers. 

Anthony Marx, President of Amherst said that majority of talent lies in the middle class where the college is under represented and it is important to access that segment. No-loan policy has helped in this as the Amherst is more accessible to the middle class now. 

Most of the other private schools however can only dream of endowments exceeding $1 billion as what is enjoyed by Amherst, one of the top wealthiest 54 colleges in the country.

According to Lauren Asher, Institute for College Access and Success, Berkeley, Calif president, it is vital focusing resources cut back on those who need it the most rather than spending on wealthy students who are potential tuition dollar contributors. She went on to say that it is positive to see many schools transparent in their policies especially those on student borrowings methods.

Budgets are being set for the following fiscal year by most of the private schools and student aid projection and tuition details are yet to be announced. It is quite a challenge for them to remain attractive to lower and middle income students.