MCC to opt out of Ford student loan program ♥

Published in the Courier-Tribune on June 14, 2011
actual version sent by the author follows the published version

by Hugh Martin

TROY — Montgomery Community College will not be offering student access to the William D. Ford Federal Direct Student Loan Program now that the N.C. General Assembly has made that option possible.

That decision was made at a June 8 MCC Board of Trustees meeting.

MCC President Dr. Mary Kirk said the concern was that a college could potentially lose future federal financial support if a significant number of students default on the loans. In addition, students could accumulate a tremendous amount of debt for a two-year degree. Ford loans can be used for living expenses as well as tuition.

House Bill 7, that allowed North Carolina community colleges to opt out of the program, was passed in March but vetoed by Gov. Bev Perdue. On Wednesday, the N.C. House passed four local bills that essentially overrides that veto for certain community colleges. Local bills cannot be vetoed by the governor.

Randolph Community College was also included in HB541, along with Alamance Community College, Central Piedmont Community College, Gaston College, Mitchell Community College, Richmond Community College, Robeson Community College, Stanly Community College and Wilkes Community College.

The loans, designed to aid low-income students with college expenses, are administered by the financial aid departments of the community colleges, but the colleges have no control over who receives the loans.

“I believe that this is the best option for this college,” Kirk said of MCC. “Our students can graduate without a pile of debt on their backs.”

Beth Smith, vice president of Student Services, agreed.

“A ridiculous amount of debt would be owed for a two-year degree,” she said. “Loans of $22,000 can be used to cover both education and living expenses.”

“If we did not have funds available through the (MCC) Foundation, then I might look at this differently,” Kirk said.

The Montgomery Community College Foundation is a nonprofit organization that offers funding for students, as well as providing resources for educational programs at the school.

Trustee Sam Martin added that many students who apply for the loans are not aware that defaulted loans cannot be displaced by declaring bankruptcy.

“They will follow you to your casket to take the money out of your pocket,” he said.

“Colleges have local autonomy,” Kirk added. “We have the authority to make the decisions that are best for our students.”

The bill states that “the board of trustees of a college may adopt a resolution declining to participate in the William D. Ford Federal Direct Loan Program. The board of trustees of any college that has declined to participate in the William D. Ford Federal Direct Loan Program through the adoption of a resolution may rescind the resolution and participate in the Program but shall not have the authority to again decline participation in the Program.”

The act will go into effect July 1.

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MCC to opt-out of student loan program

By Hugh Martin

TROY – Montgomery Community College may not be offering student access to the William D. Ford Federal Direct Student Loan Program now that the NC General Assembly has made that option possible.

House Bill 7, that allowed North Carolina community colleges to opt-out of the program, was passed in March but vetoed by Governor Perdue.

Last Wednesday, the house passed four local bills that essentially overrides that veto for certain community colleges. Local bills cannot be vetoed by the governor. House Bill 541

The bill states that “the board of trustees of a college may adopt a resolution declining to participate in the William D. Ford Federal Direct Loan Program. The board of trustees of any college that has declined to participate in the William D. Ford Federal Direct Loan Program through the adoption of a resolution may rescind the resolution and participate in the Program but shall not have the authority to again decline participation in the Program."

The loans, designed to aid low-income students with college expenses, are administered by the financial aid departments of the community colleges, but they have no control over who receives the loans.

The concern is, if a college has a significant number of students to default on their loan, then that college could potentially lose future federal financial support.

“I believe that this is the best option for this college,” said MCC President Dr. Mary Kirk. “Our students can graduate without a pile of debt on their backs.”

Beth Smith, Vice President of Student Services agrees. “A ridiculous amount of debt would be owed for a two-year degree,” she said. Loans of $22,000.00 can be used to cover both education and living expenses.

The Montgomery Community College Foundation is a non-profit organization that offers funding for students, as well as providing resources for educational programs at the school.

“If we did not have funds available through the (MCC) Foundation, then I might look at this differently,” Dr. Kirk said.

Board of Trustees member Sam Martin added that many students who apply for the loans are not aware that defaulted loans cannot be displaced by declaring bankruptcy. “They will follow you to your casket to take the money out of your pocket,” he said.

Dr. Kirk added, “Colleges have local autonomy. We have the authority to make the decisions that are best for our students.”

Other NC Community Colleges included in HB541 are: Alamance Community College, Central Piedmont Community College, Gaston College, Mitchell Community College, Randolph Community College, Richmond Community College, Robeson Community College, Stanly Community College, and Wilkes Community College.

The act will go into effect July 1.

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