CHARLOTTE, N.C. — It's enrollment time for many local colleges, but many students are still trying to figure out how to pay for school. In April, Eyewitness News told you Caldwell Community College decided to no longer accept federal student loans after the default rate doubled. Today we learned other schools are considering dumping the program as well.
Students enrolling at Central Piedmont Community College can still apply for the loans, but Wednesday we learned most of the community colleges in the Charlotte area don't offer them.
Colleges in Caldwell, Gaston, Cleveland, and Stanly counties have all stopped offering them.
Many want to avoid tough federal penalties that go into effect next year for schools with high student loan default rates.
"If the default rate gets too high, colleges are held accountable even though we have no power to screen applicants and that would impact our opportunity to offer Pell Grants which are vitally important for students to attend."
The grants go to low-income students and 'don't have to be paid back, but schools with a 30 percent default rate could lose the loans and grants all together. For that reason, CPCC is monitoring its default rate to secure funding for hundreds of students like J.C. Culbert.
"I need this Pell Grant," said Culbert.
We also reached out to Rowan Cabarrus Community College. They said they were still participating in the program. They said they were also monitoring the default rate to determine what to do with the program in the future.
WSOC
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