Brown University is raising $120 million to replace student loans with gifts

Brown University has launched a campaign to raise $120 million to replace student loans with grants that don't need to be repaid, The Hill reported.

The initiative aims to take the financial burden of repayment off of aid recipients. The policy should substantially reduce the average debt burden of its graduates.

Princeton University already has a similar policy in place. Its graduates' average total indebtedness is $8,908, compared to $23,810 at Brown.

"We're committed to making a Brown education accessible to students from all income groups, so we can continue to accept the very best and brightest students from around the world," Brown President Christina Paxson said in a press release. "When students and their families are sitting at their dining room tables making decisions about where to apply to college, or whether to accept an offer of admission, we want them to know that Brown is an affordable choice."

Brown must raise $30 million before implementation of the initiative. It aims to accomplish that goal by December 2017.