To improve college access for low-income students, an increasing number of public colleges and universities have implemented no-loan policies, where student loans are replaced with institutional grant aid that does not require repayment. Using detailed income measures provided by Mobility Report Card data, this study examines the effect of no-loan policies on student economic diversity at public 4-year institutions. Using a difference-in-differences design and the synthetic control method, we found that the adoption of no-loan policies at public institutions increased enrollment shares of low-income students (bottom two family income quintiles). However, the increase was minimal for students from the lowest income quintile, particularly at the most selective institutions. Our findings suggest that although no-loan policies may help improve affordability at public colleges and universities, further efforts are needed to address underrepresentation of students from the lowest part of the income distribution.