The nationwide trend toward increased student borrowing has not passed over Niagara County Community College, where the default rate on student loans is above the state average for similarly sized schools.
NCCC officials caution, though, that there are several outside factors weighing into that and that steps are being taken to correct the situation.
In a September memo pertaining to the creation of a new position, NCCC Vice President Bassam Deeb wrote that NCCC’s default rate is above the average for the overall SUNY community college system.
That’s true, said NCCC public relations director Lou Paonessa, but the issue isn’t a simple one.
NCCC’s students default at a rate of 10.7 percent for all types of loans, but Paonessa said many of those are alumni who continue their education at a four-year institution and default on those loans.
Then there’s the local economy.
“Part of it is our economic area,” Paonessa said. “If you have people who are poor, you’re going to have more people defaulting than people who aren’t poor.”
Paonessa confirmed that NCCC’s rate is above the SUNY average but declined to offer specifics, saying that SUNY frowns upon comparisons between its institutions. The national average is 7.9 percent.
Nationwide, outstanding student borrowing jumped from $38 billion in 1995 to $85 billion last year, according to The Associated Press.
While the issue is mainly a student problem, the college could suffer as well if the default rate isn’t lowered. Steps NCCC is taking include educating students on borrowing and tracking the situation, as well as hiring people whose job descriptions include assisting students in these matters, Paonessa said.
If the college’s default rate were to continue climbing, that would eventually lead to warning letters, an audit and a possible loss of funding, Paonessa said. The college is a long way from those measures, he said, but wants to make sure things never get to that point.
“It’s a national problem. We’re trying to be proactive,” he said. “You don’t want to be caught later on not doing everything you could.”
Contact reporter Paul Laneat 282-2311, ext. 2251.
Local News
October 15, 2007
NIAGARA COUNTY: NCCC students above SUNY loan default average
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