WATERVILLE (AP) – A private Maine college is eliminating loans from financial packages for in-state residents and replacing that aid with grants.

Colby College President William Adams says the change takes place starting with next fall’s incoming class.

The liberal arts school says the new policy will make it possible for Maine students who qualify for financial aid to graduate with no student-loan debt.

The initiative is being supported with financial help from Portland businessman and philanthropist Joseph Boulos and his wife, Sheri. Boulos graduated from Colby in 1968 and is chairman of Colby’s board of trustees.