No one questions students’ ability to get grants or loans to cover meal plans
According to data from the California system, no colleges were above the 30 percent federal threshold. The system’s overall default rate is down to 17 percent, from 19 percent last year.
The system recently began a campaign best payday loans Thibodaux to get all of its colleges below 20 percent. Last year, 30 colleges were above that mark, Metune said, compared to just 19 this year.
The college didn’t exit the loan program without offering students other options
Any college that is enrolling students taking out federal loans is right to be concerned about loan defaults among former students, and they should take that seriously, Cochrane said.
While Cochrane said she’s heard one-off anecdotes about a student who used financial aid money inappropriately, there is very little evidence of this being a widespread problem, particularly at the community colleges.
Most community college students are living independently, and they will have living costs, she said. No one questions those costs when they’re talking about four-year students. But you will hear a lot of the same people be highly critical of community college students who are taking out loans and receiving grant aid to cover their grocery bills or rent.
At least one college in a relatively low-income area of the state cited students who used federal aid to cover living expenses as a reason to opt out because those conditions make it difficult for graduates to repay.
For example, North Carolina’s Beaufort County Community College stopped participating in federal loan programs in 2014 because of rising default rates, said David Loope, the college’s president. (more…)