LAKE COUNTY — The moratorium on federal student loan payments began in March 2020 and has had six extensions thus far, including the most recent extension to August 31, 2022.
Millions are under pressure to pay back their student loans. With prices rising and jobs lost during the pandemic, many have not been able to keep up with their loan payments, including students attending college in Lake County.
One Record-Bee reader promised anonymity, told of her situation where her family has had to make the decision to pay $1,000 per month on her student loan, or buy food for her family. She’s been in default for four years and her credit score has plummeted to the point where she can’t find housing because of her $50,000 in student loan debt. She said, “I thought I was at a film-based trade school. They would take students who couldn’t afford the school, the students hoping they’d get a good job but it was a predatory situation with that school. The school no longer exists, but my debt does. At one point the department of Education bought my loan, now I owe them. It’s kind of a blessing that they did because Congress said the interest rate was lower (under 5%, maybe 3.5%). My highest interest at one point was 11%”.
According to multiple news outlets, the Biden administration announced this week that it will cancel more than $70 million in student debt for borrowers who say they were defrauded by the for-profit DeVry University— the first time the Education Department has approved such claims for an institution that’s still in operation. At least 1,800 former DeVry students will have their loans cleared after the department concluded that the school lied about the success of its graduates in order to get new students to enroll.
Jordan O’Halloran, another former student attended the University of San Francisco’s School of Education to get her teaching credential and Masters in Special Education in the summer of 2015. “With the loan, I was able to move to San Francisco. I owe $17,000 even though I only did one semester. I wasn’t passionate about teaching anymore. I’m not working in this field, but I do work in the community at a nonprofit. The deferment for loans have been helpful with COVID because it’s one less bill to worry about. However, I may start paying it again soon. President Biden has released that if you make consistent payments and work at a nonprofit (which I do), your loan may be shortened. I am going to jump on that. I think the pause has helped a lot of people. At times, it feels like I have barely made a dent in my loan because the interest is so high. If I could go back in time, I wouldn’t go to grad school because I’m not even doing the work that I set out to get that degree in.”
Attempts were made to speak with the financial aid department, the marketing department and the department of counseling of Mendocino College regarding the student loan situation, with no response by press time.
Woodland Community College’s Financial Aid Technician Stan Silsby said the college instructs students in need of financial aid on three ways to get free tuition at Woodland Community College rather than take out a loan. 1. The California College Promise Grant is a state-sponsored program which waives enrollment fees for qualifying students. 2. The Woodland Community College Promise program will pay tuition for first-time, full-time students up to 15 units per semester at any WCC campus. 3. The college covers up to two years of community enrollment and college fees for eligible students residing in Woodland (not those living in Lake County and attending the Lake County campus.)
Art Pimentel, President of Woodland Community College, said that “Woodland Community College has developed a model in partnership with the City of Clearlake to support the the educational goals of their residents. Which includes enrollment fees, health, parking and student representation fees.”
Silsby said, and Pimentel agreed, there’s really no need for students to take out loans with the above programs available. He also mentioned the Federal PELL Grants Program that provides need-based grants to low-income undergraduate and certain postbaccalaureate students to promote access to postsecondary education.
A quick internet search for student loans produces pages of loans. Such loans have created some of the problems repaying loans for the two former students referenced in this article along with millions of others who have borrowed money for school.
When asked about his position on student loans, Congressman Mike Thompson, D-CA 5th District, said, “College affordability has always been a top priority of mine, and I know that the combination of student loan debt and the COVID-19 pandemic has overwhelmed many people. That’s why I signed a letter to President Biden asking that the student loan pause be extended, and I am glad to see that President Biden did extend the loan through August 31. I am committed to helping more Americans afford college and trade schools and have been pushing for the expansion of Pell Grants to ensure that more Americans have the opportunity to pursue higher education without taking on exorbitant student loans.”
