Princeton University has been ranked the best college in the United States by the U.S. News World Report. The private institution, located in the calm town of Princeton, N.J., was the first university to provide financial aid without loans. The policy, which is applicable for both domestic and international applicants, offers grants combined with a campus job to financially needy students.

Harvard University, which shared the number one position with Princeton in 2012, was placed second in the current list. The Ivy League School is followed by Yale and Columbia University in the third and fourth positions respectively.

The magazine's latest annual list was based on selectivity, retention and graduation rates. For 2013, the list features 11 prominent higher educational institutions in the top 10.

Stanford University and the University of Chicago have been tied for fifth; while Duke University, Massachusetts Institute of Technology and the University of Pennsylvania shared the No.7 spot and both California Institute of Technology and Dartmouth College together earned the tenth position.

"Higher education remains an important indicator of future earnings and career stability," said Matt Speer, sales and marketing director for the US News rankings. We're pleased to provide this useful tool and data to help students make an informed decision."