Student support helps lower loan default Rates
In the midst of a tough economy and high unemployment, Western Nevada College students are enrolling in greater numbers, and applying for more grants and loans to pay for college. But the college is seeing one bright spot on the financial front: a decreasing default rate on student loans.
Final figures won't be in for a month or so, but Director of Financial Assistance Lori Tiede said preliminary numbers show a default rate of 6.7 percent on student loans for 2007, compared to a 10.5 percent default rate for 2006.
Part of the success is due, Tiede says, to Western's speedy follow-up with any student who misses a loan payment.
Assistance may include asking lenders for deferment of a payment. Western also encourages student retention by addressing academic problems in a timely manner.
"We have an early alert system in Counseling Services; if a faculty member sees that a student is struggling we provide tutoring and other services to get them through the semester," Tiede said. "It's a strong, campus-wide effort to retain students and lower the default rate."
Students who receive loans are required to attend an annual orientation outlining their rights and responsibilities as borrowers. They are also required to list five adult references, so there will be no problem getting in touch with a student if a payment is missed.
The sagging economy is clearly affecting the number of students who are seeking college loans. "We're up 30 percent this year, and we were up 30 percent the year before that. It's a significant increase," Tiede said.
Students fill out the FAFSA (Free Application for Federal Student Aid) to determine whether they qualify for federal loans and grants.
"It requires a Social Security number and about 45 minutes of your time to complete the form online," Tiede said. Based upon need, students may receive loans with subsidized interest while they are in college, loans that have interest charged immediately, or a combination of the two.
Tiede said community college classes are generally more affordable than four-year colleges, and it's best if students do not use up their loan eligibility early in their college education.
For those considering college, several positive events are occurring right now:
• Students can apply for federal Pell Grants, which have a new higher maximum of $5,310 per year. These are based on financial need and do not require repayment.
• A five percent increase in registration fees at Nevada community colleges will be delayed until the spring of 2010, and a percentage of those funds will be earmarked for student scholarships and grants.
• Colleges and universities around the country are expected to see hundreds of thousands of veterans take advantage of the new GI Bill. Many service members who enlisted after 9/11 are completing their active duty.
• U.S. Education Secretary Arne Duncan has said online financial aid application forms used nationally will become shorter, simpler and easier to use. The changes are designed to increase college access for low- and middle-income students.
Go to "Boot Camp" to prepare for GED test
WNC's Office of Adult Basic Education is offering a unique delivery method of instruction this summer to prepare those studying to take the GED high school equivalency test. "GED Boot Camps" are intensive, 70-hour courses which are meeting for four days a week, three and a half hours a day, for four or five weeks. The class is followed by administration of the GED test, and the chance to enroll in college upon passage.
"Students respond to the boot camp analogy, understanding the rigor of the course with a clear outcome," said WNC Adult Basic Education Director Teri Zutter.
Both morning and evening boot camps are offered. Information: 445-4451.