Community colleges across the country that don't offer access to federal student loans are imperiling nearly one million students who may turn to riskier forms of credit to fund their education, according to a report released Monday by the Institute for College Access & Success (TICAS).
African-American, Latino, and Native American community college students are more likely than their white counterparts to attend institutions that do not participate in the federal student loan program, the study found.
In a handful of states, many in the South, more than one-fifth of community college students lack access to federal loans, according to the study.
The racial disparity is even more pronounced in some of those states. In Alabama, for instance, nearly 64 percent of African-American community college students lack access to federal loans, compared to more than 34 percent of white students.
Similarly, nearly 59 percent of African-American community college students in Tennessee are unable to obtain federal loans, compared with 37 percent of their white peers.
Relatively few community college students have to take out loans to finance their education. Many students are able to cover tuition and fees with Pell Grants or other forms of aid. However, for students who need to borrow that money, they should universally have access to federal loans (as opposed to private loans or credit cards), TICAS argues in the report.
"Barring access to federal student loans doesn't keep students from borrowing," said Debbie Cochrane, the group's research director, who was the report's lead author. "It just keeps them from borrowing federal loans, which are the safest option."
Read more at Inside Higher Ed: http://www.insidehighered.com/news/2014/07/15/report-minority-community-college-students-denied-access-federal-loans#sthash.zVkF09IB.JUpZ26k5.dpbs