As Stricter Default Standard Looms, Community Colleges Brace for Impacts

As Stricter Default Standard Looms, Community Colleges Brace for Impacts 1

NPCC

With eligibility for federal student aid on the line and millions at stake, aid administrators are scrambling to bring their default rates down. National Park Community College (above), in Arkansas, has become an example of how to do that.

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NPCC

With eligibility for federal student aid on the line and millions at stake, aid administrators are scrambling to bring their default rates down. National Park Community College (above), in Arkansas, has become an example of how to do that.

Starting this fall, colleges will be held to a higher standard for keeping their student-loan borrowers out of default, and that has some student-aid administrators very nervous. Colleges that fall short could lose their eligibility to award federal student aid, the lifeblood of most colleges.

That looming threat made managing default rates a hot topic at a gathering of financial-aid administrators here this week, with many of them sharing ways to limit student debt and rein in