A new report says nearly 1 million community college students — including many students of color — face added educational and financial challenges because their colleges choose not to participate in federal student loan programs.
“Most community college students still don’t use loans to pay for their education, but for those who need to borrow, federal student loans can make the difference between graduating and having to drop out,” said Debbie Cochrane, research director at The Institute for College Access and Success (TICAS), which authored the report.
For example, while only 17% of all community college students take out loans, the rate is much higher—37%—among those who finish an associate degree, says the report, “At What Cost? How Community Colleges That Do Not Offer Federal Loans Put Students at Risk.”
While community colleges have much lower tuition and fees than four-year institutions, students at a typical two-year college still face total annual costs of $15,000, the report said. Most full-time community college students, 82%, qualify for financial aid although only 2% have their need fully met by grants.
That financial gap leaves students seeking loans either through federal programs or the private sector. If they attend colleges that don’t participate in the federal program, students must move toward more costly private loans or rely on credit cards, the institute noted.
“Barring access to federal student loans doesn’t keep students from borrowing—it just keeps them from borrowing federal loans, which are the safest option,” Cochrane said.
The issue appears to hit students of color the hardest, according to TICAS. For example, 12% of African-American students, 10.5% of Latinos and 20% of Native Americans attend community colleges that do not offer federal student loans. The rates for White and Asian students are lower at 7.5% and 4.5%, respectively.
