Amid dire financial forecasts for the nation’s economy, Vanderbilt University has unveiled plans to expand its financial-aid program, announcing this morning that it would replace loans with grants for all eligible students.

Vanderbilt’s new initiative will not include income caps, according to Douglas L. Christiansen, associate provost for enrollment and dean of admissions. “We didn’t want to pigeon-hole families to an income bracket,” Mr. Christiansen said in an interview. “We’re trying to focus on demonstrated need to open access to middle-income families who feel priced out.”

Vanderbilt, which practices need-blind admissions, expects the new policy to add nearly $15-million to its annual financial-aid budget. Vanderbilt students receive a total of about $70-million annually in institutional aid.

The university plans to raise $100-million over the next several years to help finance the new program. —Eric Hoover