UCLA announces scholarship effort to reduce student debt

Fueled by a $15 million donation, UCLA announced an effort Wednesday to raise funds for student scholarships as part of a larger goal of creating debt-free education by 2030 by removing the need for student loans.

The UCLA Affordability Initiative was unveiled thanks to a $15 million donation by real estate investor and UCLA graduate Peter Merlone.

“UCLA was founded on the notion that access to a top-tier education should be available to talented individuals of all backgrounds and financial means,” UCLA Chancellor Gene Block said in a statement. “Peter Merlone’s gift, and the UCLA Affordability Initiative as a whole, will help us preserve our ability to attract stellar students from across the state — and set them up for success after graduation.”

According to the university, traditional discussion of college affordability generally focuses on the cost of tuition, while overlooking ancillary costs such as housing, books, food, transportation and other expenses.

With Merlone’s donation, UCLA will grant four-year scholarships of about $20,000 — at $5,000 per year — to as many as 35 California resident students beginning next year. University officials said the money could dramatically reduce or eliminate the need for student loans.

“First, UCLA is working to create a better understanding of the true cost of college and how that challenge is typically met, in part, through student loans,” Gary Clark, UCLA’s interim vice provost of enrollment management and executive director of undergraduate admission, said in a statement. “Second, we’re seeking to provide an alternative to student loans. With enhanced scholarship support from philanthropists, we can reduce the financial pressure of obtaining a UCLA education and ensure UCLA is the first choice for all California students who receive offers of admission.”

Merlone, who earned his UCLA degrees in 1979, said in a statement that he attended the university “in a different era, when student loans were rarely seen.”

“I care about making an impact with my giving, and scholarships are the most direct means for me to do that,” he said. “I know others share my concern for California’s students, and I hope my actions inspire more people to step forward with scholarship support.”

More information on the initiative is available online at tinyurl.com/7m75ck62.