Federal Loans Not Possible For Many College Students

[Jun 2, 2008.]

 

It has seemed that for the longest time, students needing money to pay for their college expenses could always turn to the federal government to provide them the loans necessary to bring their education dreams to fruition. A new study has shown, however, that more than one million students at community colleges are unable to procure federal loans because their schools have decided not to participate in the government's student loan program.

The community colleges that do this cite their reasons for refusal as being an economically conscious effort to protect students from taking out excessive loans and putting themselves in financial jeopardy.

But the report on this subject, made by the Project on Student Debt, a California-based effort, argues that these schools are prohibiting their students a very important benefit, one that allows them to continue their education without having to work excessively or pile up debt on their credit cards.

The results of the study are heavily criticized by groups representing financial aid committees and community colleges, not to mention a notable number of people who are employed at some of these community colleges. They stress the fact that the colleges these students attend are much more affordable than 4-year schools and that likewise it is very reasonable to inform students that they should refrain from borrowing.

Brend DiSorbo, financial aid director at the Central Georgia Technical College, has said that the students shouldn't get eager over what might appear to them to be free money, a misconception that can devastate their ability to actually pay for their education when the default rates emerge and shock them towards the reality of having to pay back what they've borrowed.

Others have shown concern over this attitude, saying that they believe denying students the aid of federal loans doesn't prevent them from applying for loans all together. Instead, it may force these students to take out loans that are in effect more expensive than what the government offers.