Students Struggle to Repay Student Loans – Lake County Record-Bee
LAKE COUNTY – The moratorium on federal student loan repayments began in March 2020 and has had six extensions so far, the most recent of which was through August 31, 2022.
Millions of people are under pressure to repay their student loans. With prices rising and jobs lost during the pandemic, many have been unable to repay their loans, including students attending Lake County University.
A Record-Bee reader, on condition of anonymity, recounted her situation where her family had to make the decision of whether to pay $1,000 a month on their student loan or buy food for their family. She’s been in default for four years and her credit rating has plummeted to the point where she can’t find housing because of her $50,000 student loan debt. She said: “I thought I was in a film-based business school. They were taking students who couldn’t afford the school, the students hoping they would get a good job, but it was a predatory situation with this school. The school no longer exists, but my debt does. At one point the Ministry 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 (less than 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 forgive more than $70 million in student debt for borrowers who say they were defrauded by for-profit DeVry University — the first time the department has of Education endorses such claims for an institution still in operation. At least 1,800 former DeVry students will have their loans repaid after the department found the school lied about its graduates’ success in order to entice new students to enroll.
Jordan O’Halloran, another former student, attended the University of San Francisco’s School of Education to earn her teaching degree and master’s degree in special education in the summer of 2015. could move to San Francisco. I owe $17,000 even though I only did one semester. I was no longer passionate about teaching. I don’t work in this field, but I work in the community in a non-profit organization. Deferring loans has been helpful with COVID as it’s one less bill to worry about. However, I might start paying it again soon. President Biden has said that if you make regular payments and work at a nonprofit (which I do), your loan could be shortened. I will jump on it. I think the break helped a lot of people. Sometimes I feel like I barely made a dent in my loan because the interest is so high. If I could turn back time, I wouldn’t go to college because I’m not even doing the job I planned to get that degree.
Attempts have been made to speak with Mendocino College’s Financial Aid Department, Marketing Department, and Counseling Department regarding the student loan situation, with no response at press time.
Woodland Community College Financial Aid Technician Stan Silsby said the college teaches students in need of financial aid three ways to get free tuition at Woodland Community College rather than taking out a loan. 1. The California College Promise Grant is a state-sponsored program that waives tuition fees for eligible students. 2. The Woodland Community College Promise Program will pay tuition for new 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 tuition 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, “Woodland Community College has developed a model in partnership with the City of Clearlake to support the educational goals of its residents. This includes registration fees, health, parking and student representation fees.
Silsby said, and Pimentel agreed, there really is no need for students to take out loans with the above programs available. He also mentioned the federal PELL grant program, which provides need-based grants to low-income undergraduate and some post-baccalaureate students to promote access to post-secondary education.
A quick Internet search for student loans produces loan pages. These loans created some of the loan repayment issues for the two former students referenced in this article as well as millions of others who borrowed money for school.
Asked about his stance on student loans, Congressman Mike Thompson, D-CA 5th District, said, “Affordability of a college education has always been a top priority for me, and I know the combination of debt student loan and the COVID-19 pandemic has upset many people. That’s why I signed a letter to President Biden asking that the student loan suspension be extended, and I’m glad to see that President Biden has extended the loan until August 31. push for the expansion of the Pell Grants to ensure that more Americans have the opportunity to pursue higher education without taking out exorbitant student loans.