Can't get a student loan for community college? Good!
Filed under: Borrowing, College
The tightening in the student loan market continues: The New York Times reports that an increasing number of lenders are declining to offer loans for community colleges, presumably because the small denominations do not justify the costs of servicing. With more than 40% of undergrads attending community colleges, some are worried.But here's the thing: while this might put off some students, I seriously doubt that it will deter the students who have the dedication to complete an Associate Degree. Community college just isn't that expensive, and the average student loan amount for these schools is about $3,200 per year, according to the College Board. Most people can find an extra $3,200 per year. Working an extra shift or two each week at a grocery store would do the trick. Or students could, gasp, drink a little less and sell old video games on eBay.
And here's the best part: students who are forced to work harder because they can't get loans will graduate debt-free which, as anyone struggling under the weight of tens of thousands in debt will tell you, is something to strive for.
Many students take out loans as a choice rather than a necessity. The continued tightening of the debt market for college students will force students to make better financial decisions, leaving them far better off in the long run.
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Reader Comments (Page 1 of 1)
6-02-2008 @ 7:27PM
patrick said...
Your a horrible person. It's alot harder than it seems to get that extra bit of money. And What about after your associates degree. I'm assuming that you had your college paid for by mommy and daddy and never had to work for anything.
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6-10-2008 @ 3:12AM
Eric said...
Ok so I kinda agree with the better financial situation. Here is what I have to say. With all the tight financial layoffs of teachers and poor salaries paid at schools it makes it hard. So community college isn't that expensive. I have been at a community college and had to deal with the fact that I worked during all of my classes making it hard to get the A's. So B's and C's are what make up my transcript working 40 hours a week paying my bills. Now alot of the schools are waitlisting me due to the fact that I didn't have parents to pay my bills making it easy to me to glide through school and get the A's they are looking at. So when you read this article think of the long term affect. I may have an Associates degree but I was waitlisted at 9 colleges before getting accepted and getting on with my life. Next time you research, ask a student, don't just study them.
6-02-2008 @ 11:57PM
sarah said...
I'm attending community college right now, and did not take out a loan. I wish I had. I work hard and sacrifice and can still hardly afford school right now. If it weren't for my parents, I would have had to drop off. It's not as simple as "picking up more hours" at work. I work at a grocery store, too. They don't pay that well. Please don't make such harsh generalizations in the future.
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7-13-2008 @ 10:36AM
Michael said...
After I left the military, I attended a community college and I was lucky enough to have the G.I. Bill to pay for my associates degree. I am realizing now, more than ever, that it is absolutely essential to have AT LEAST a bachelors degree these days. The time is finally right, and a few months ago I applied and got accepted to UMBC. I work full time, but I don't make enough money to cover the $4,390 per semester tuition, not including books, etc. I no longer have any money in my G.I. Bill to use or any other extra funds, so I recently applied to Sallie Mae for a private loan to help. I was told my loan was approved pending a qualified co-signer. I used my father as a co-signer - he is more than qualified - and I found out yesterday that my loan had been declined and I would be receiving a letter in the mail in 5 days explaining why. I will be calling Sallie Mae for an explanation. Now, because of this, I am stuck trying to find another lending institution to help me out, I am in the middle of a summer class I haven't even paid for yet, and I have until the end of August to sort it all out before the fall semester starts. I hope no one else is stuck in this situation, because it doesn't feel very good.
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