CLEARLAKE — The Federal Student Loan Program is set to be suspended effective fall of 2013 in the Yuba Community College District (YCCD).
The Yuba Community College District spans eight counties and nearly 4,200 square miles of territory in rural, north-central California.
Colleges in Yuba and Yolo counties and campuses in Colusa, Lake and Sutter counties. Outreach services at Beale Air Force Base provide degrees, certificates and transfer curricula to 15,000 students annually.
The U.S. Department of Education policy would be to revoke a college”s ability to participate in any federal financial aid program, including Pell Grants, FSEOG, and Federal Work Study, because of excessive default rates.
The decision by the college and its Board of Trustees to suspend the Federal Student Loan Program was made in an effort to protect the availability of future federal financial aid.
The Board of Trustees has formed a committee to assess its decision through data analysis for future years.
The board”s action to suspend Federal Student Loans will protect all Federal student aid, including Pell Grant, meaning that eligible students will still be able to receive all Federal Grants as well as State Cal Grants.
According to the district, 236 YCCD students participated in the Federal Student Loan program in the past school year. Whereas 5,270 students received other forms of federal financial aid totaling more than $1.9 million.
YCCD draft default rate, for former students, exceeds federal limits. Should YCCD lose eligibility to participate in federal financial aid programs, thousands of students would be turned away.
College administrators will be available to assist students who rely on the Federal Student Loan Program to identify alternative financial aid solutions.
