Morgan Liggera
Community college students may find it harder to obtain loans because two lenders, CitiBank and J.P. Morgan Chase, have temporarily suspended certification of federal Stafford loans to community college students nationwide, according to the American Chronicle.
Chase released a statement suspending their loans in April. The Denver Post reported that many community college students weren’t repaying their loans, which were already less profitable to the lenders compared to other larger loans, so they pulled out of the system.
“It’s really a disservice to our students,” said Anafe Robinson, the financial aid director at Pierce.
Federal Stafford loans are guaranteed by the federal government.
Though class expenses at Pierce may be small compared to four-year universities, at only $20 per unit, 124 students at Pierce had obtained loans from CitiBank, according Robinson.
Robinson said students at Pierce can be directed to more than 100 potential lenders, so elimination of these two lenders should not cause a significant problem.
Many students at Pierce take advantage of grants or financial aid, either through Board of Governors fee waiver or Federal aid such as FAFSA. However, textbooks and other living costs can require students to work full or part time to pay expenses.
Larry Nguyen, sports medicine major, applied for a BOG fee waiver, which covers all unit fees. He doesn’t rely on credit or loans.
“I only had to pay for books, and that was out of my pocket,” Nguyen said. “I might need loans later on at a university.”
Amanda Glomboski is in her second year at Pierce and works full time to pay for books, classes and living expenses.
Adriana Anderson is a Pierce student who received financial aid through FAFSA because of her low income.
“I’m so glad it was available,” said Anderson, who decided after 20 years to come back to school to pursue equine science. “It really opened some doors for me.”
For students who don’t qualify for aid, federal loans would be preferable to private loans or credit cards because they have the lowest interest rates and allow for deferred payment until after graduation, according to Robinson.
(Ball, Nicole)