# What does Penn mean by grant-based aid? Does this mean I will never take out a loan?

**Source**: https://ask.admissions.upenn.edu/support/solutions/articles/157000361184-what-does-penn-mean-by-grant-based-aid-does-this-mean-i-will-never-take-out-a-loan-
**Parent**: https://ask.admissions.upenn.edu/support/solutions/articles/157000361103-how-do-i-apply-for-financial-aid-

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# What does Penn mean by grant-based aid? Does this mean I will never take out a loan?

Modified on Fri, 1 Aug, 2025 at 3:43 PM

All financial aid at Penn is based on financial need, which means that Penn does not provide merit-based aid or athletic scholarships. Grant based aid typically refers to financial aid provided by the institution that does not need to be repaid. Penn meets 100% of demonstrated need with non-loan financial support and work-study. Penn is one of the few universities that does not package loans to meet your financial need, making it possible to graduate from Penn without incurring educational debt. Families can still choose to replace all or part of their Expected Family Contribution or to replace packaged work-study funding with loans. Less than a quarter of students receiving need-based aid also take out some educational loans.

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