COLUMBUS COUNTY, NC (WECT) – Officials at Southeastern Community College have decided to stop participating in the Federal Direct Student Loan Program, a spokesperson with the school confirmed Monday.
Glenn Hanson, Director of Financial Aid, said in an email to students that the decision came because of the school's increasing student loan default rate. The school's participation in the program will stop at the end of summer school this year, so that federal loans won't be offered for fall 2013 or after.
Hanson noted that students can still take out non-federal private student loans, utilize the school's payment plan and see if they apply for scholarships.
For more information on payment options, visit www.sccnc.edu.
David Hardin, a public information officer at Cape Fear Community College, says they are also considering whether or not they should continue offering federal loans, because their default rate has also increased. Currently, 17 percent of their federal loans are in default.
If a school's federal default rate remains high over an extended period of time, it could affect that school's ability to offer other financial aid, such as Pell grants.
Schools are not able to withhold degree's or transcripts due to non payment; they can only remind students that they must pay.