With recent media reports focusing on the fate of student loans, it's important for students and their families to learn of a new federal law designed to expand access to financial aid.
The Ensuring Continued Access to Student Loans Act of 2008, which was introduced into Congress on April 8, became law less than a month later when President Bush signed the bill on May 7.
Beginning July 1, the Act includes several components to ensure students in New Hampshire and the rest of the country are able to continue their college education.
Among other things, the bill:The new law is great news for students in the Community College System of New Hampshire. During the last year at the System’s seven colleges, about 90% of student financial aid was federally sponsored, and more than 75% was in federal loans to students or parents.
As the media have reported, much of the economy – including student loans – has been affected by the so-called "credit crunch" that resulted from problems with the sub-prime mortgage industry.
However, government and higher education officials from Concord to Washington understand the importance of student loans for college students, and were able to react with unprecedented speed.
While several media reports have focused on the 50 student loan providers that suspended their federal loan programs since Fall 2007, these providers account for only 1% of lending activity from the more than 2,000 lenders who provide this service.
New Hampshire's community college students also rely on loans from private, alternative sources not sponsored by the U.S. Department of Education to help cover the gap between federal financial aid and the cost of attending college.
Recently, nearly 20 lenders have eliminated their alternative loan programs. As a result, while the New Hampshire Higher Education Loan Corporation (NHHELCO) will continue to process federal student loans, it has discontinued its alternative program, though with a commitment to return to the market once it settles.
We are considering ways in which New Hampshire Community College students might participate in the Direct Loan Program, which allows students to borrow directly from the U.S. Treasury via the Department of Education.
Further, as always, we are looking at local sources of scholarship funding through our Community Colleges Foundation to increase the financial aid pool available to students.
All of these measures are crucial because student financial aid – through a menu of loans and grants – is vital to the future of New Hampshire.
Recent forecasts from the N.H. Department of Labor indicate that the fastest-growing industries – ambulatory healthcare, education, and food service – will add nearly 28,000 jobs to the state by 2014. It’s no coincidence that the New Hampshire’s community colleges have designed programs to meet these demands – and many others.
While it's true that we are working in a new economic environment, it's important for the public to know that we'll continue to do what it takes to ensure that students in the Community College System have every tool available to help them succeed.
Back to News List
