My Turn: High default rates for student loan programs - WECT TV6-WECT.com:News, weather & sports Wilmington, NC

My Turn: High default rates for student loan programs

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It's sad to see it come to this, but for some the dream of higher education might just have to stay a dream.

Southeastern Community College in Columbus County announced it won't participate in the Federal Direct Student Loan Program anymore.  Officials at Cape Fear Community College have acknowledged they're considering dropping out as well.

The reason?   Too many people aren't paying that money back.  The default rates are so high it could actually hurt the schools from offering other types of financial aid.

As I see it, these schools appear to have no choice.  They don't have much recourse in recouping the money.  They can't hold diplomas or transcripts.  All they can really do is persistently nag people into paying.  That's not working out real well. 

As it stands right now, I see two big problems, the interest rates are too high and the schools need to be given some sort of leverage in collecting these loans.  It shouldn't take a Rhodes Scholar to figure out something is wrong and in need of fixing.  Some bright young minds out there could suffer because of this.   

That's my turn.  Now it's your turn.  To comment on this segment, or anything else, email me at yourturn@wect.com.


 

Emailed comment from viewers:

My attendance at CFCC was stopped because I had exceeded the amount of credit hours that were allowed.  I currently am paying back my student loan with Great Lakes.org. Cfcc only allows one appeal in your college career. The changes in my diabetes care which includes severe polyneuropathy. As a result I  would have to pursue another degree they would not help. I also have both cognitive and learning challenges with above a 3.0 GPA. 

Thank You for doing such a relevant story

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