Community College Students Lack Access to Affordable Loans
A new analysis we issued today shows that at least one million community college students - one in 10 nationally - have no access to federal student loans. Almost a quarter of all community colleges do not to participate in the federal loan programs, forcing needy students to resort to riskier, more expensive options such as private student loans and credit cards, or to jeopardize their success in school by working too much.
Our issue brief, Denied: Community College Students Lack Access to Affordable Loans, found that in eight states, more than 20 percent of community college students cannot get a federal loan. We also found significant disparities between different racial and ethnic groups, with African-American and Native-American community college students the least likely to have access to federal loans.
Update on Rulemaking for IBR and Public Service Loan Forgiveness
On Monday, the U.S. Department of Education concluded its negotiated rulemaking for the College Cost Reduction and Access Act of 2007. The negotiation addressed how Income-Based Repayment and Public Service Loan Forgiveness will be implemented, including eligibility requirements. The negotiators, who included representatives from student and consumer rights organizations as well as the lending industry, reached consensus, and the Department will soon publish draft regulations. After a public comment period, the regulations will be finalized by November 1, 2008. Visit IBRinfo to learn more about these new developments.
California Budget Cuts Could Hurt Community College Students
On March 27, 2008, the Institute for College Access & Success (the Project's parent organization) released an issue brief about proposed cuts to Cal Grants, California's largest need-based grant program. Gov. Schwarzenegger's proposed state budget eliminates new Cal Grant awards for 45 percent of community college students who would have received them, along with five percent of would-be recipients at the University of California and 10 percent in the California State University system.
Download the report to learn more about the proposed cuts and their potential impact on students. And if you're a California resident, urge your state legislators to preserve this high-impact, low-cost grant program.
(This announcement was sent to the Project on Student Debt mailing list on April 17, 2008.)