Debt Task Force Report

A report on the results of the debt task force was given at the Board of Trustees meeting Sept. 25.

Graydon Stanley, vice president of student services, gave a report on the changes in the debt load of students after changes were made to the way financial aid and loans are awarded.

Stanley said that a drop of 55 percent occurred in the average debt load from 2012 to 2013. An estimate of just over $6,000, down to $2,700 this year.

“We believe most of that is attributable to the changes in our policies in financial aide,” Stanley said.

“One of the policies that we changed was, most institutions were awarding everything that students were eligible for upfront. That might be pell grant, that might be work study, that would be subsidized and unsubsidized loans,” Stanley said.

Students are no longer awarded unsubsidized lonas upfront. A number of steps were added, including financial literacy training.

Unsubsidized loans were awarded to 2,693 students in 2012. This year 669 students received those loans.

Subsidized loans are still awarded as before, but awarded in installments.

“While we’ve had a few complaints from students, it’s been very few. It’s been exceptional, and for the most part these changes have rolled out smoothly,” Stanley said.

Ron Dorn, vice president for resource management, said that reducing the defaulted debts affects the budget positively.

Dorn said that a report will be given in mid-January on the affects of the debt reduction on NIC’s revenue.