<p>Interesting study: "Starting at a community college might not alleviate the pile of loans a student could face after graduation, despite lower costs, according to a recent report."</p>
<p>Students who transfer to a four-year college will likely accumulate a similar amount of loan debt as those who complete all four years a college or university, according to this study from Texas. </p>
<p>Report:</a> Transferring from community college might not help student debt - Houston Chronicle</p>
<p>I don’t see clear evidence that they are comparing true peer groups. </p>
<p>If a student chooses the CC-Transfer route because of money, what kind of debt-load would that student have had if that student had started at the U to begin with? 30k? 40k? Could he or she have even been able to take on that kind of debt in the first place?</p>
<p>I think it really depends how expensive the community college is, too.</p>
<p>As a California community college student, I paid $12 per unit up front for my entire lower-division studies, transferred to an OOS public with tuition exchange and graduated with a little over $20,000 in undergraduate debt. I would have paid far, far more if I had taken eight semesters at the OOS school instead of five. And because of California housing costs, attending an in-state school with my major would not have been significantly cheaper - tuition would have been somewhat lower but room/board would have been significantly higher.</p>
<p>Even if “CC to Univ” students end up with about the same debt as 4 year univ students, that just suggests to me that maybe too many CC students are using loan money in an unnecessary way.</p>
<p>Some students may be using some/most of the loan money to unnecessarily move out of the home.</p>
<p>Some students may not be bothering to get summer or part-time jobs because getting a loan is much easier.</p>
<p>Some students are living at home, but the COA allows them to take out a loan, so they use the money for whatever interests them.</p>
<p>Certainly the student who can’t live at home while attending a CC needs his Pell grant and student loan to help make ends meet. However, it seems like some don’t really need the loans, but they seem like “free money” to these kids. </p>
<p>I wish there were incentives for CC kids NOT to take out loans. I wish that they were allowed to take $15k per year loans as juniors and seniors at their univs if they didn’t borrow for frosh/soph years at their CCs.</p>
<p>What usually happens is that students will borrow all they can unsub or sub from the Staffords to meet Community college costs. So they owe every bit as much as those who borrow those same amount to go away to school. What’s even more galling is that some schols have “counselors” available to make sure all student use up that available money whether they need it or not, because it is there. In part, it’s because the loan amounts to not cumulate to be borrowable in future years, making it a use it or lose it propostiion. The point being missed, of course, is that by NOT borrowing that money, or borrowing it and saving it for the four year school, one does not have that debt or have that money for the last two years. Those dimwits don’t get that and encourage the kids to USE the Staffords as though it is free money, which, of course, it is not Particularly deadly is that those interest rates are quite high for the unsub portions and are not deferred during the college years. It’s a whole other thing if the student does have demonstrated need and borrows the sub Stafford portion, alleviating family cost those years. But free money this is not in most cases. </p>
<p>What the savings is, is the comparison of costs those first two years vs the next two away.</p>
<p>I’ve seen recommendations on these threads for students to max out Stafford loans while at CC so they can afford an in-state U the family can’t afford otherwise.</p>
<p>Erin’s Dad,</p>
<p>I probably have given that advice myself. If the student can afford the CC out of pocket, it usually still is possible to take out the loans. By sticking them into a savings account, that money will be waiting when the kid heads off to the transfer-to institution. We considered that option while Happykid was at our local CC, but decided against it because she landed a scholarship that meant out own out of pocket money could be saved for the last two years.</p>
<p>I’ve also recommended that, too, when I’ve seen situations where the student will be short of money for junior and senior years. I hate that route because interest is growing and the student may not be disciplined enough to “save” the money.</p>
<p>I don’t like the “use it or lose it” policy. Students should be able to delay their Stafford loans til junior year…and be able to borrow more…at least $15k. </p>
<p>That said, there are too many naive 18 year olds that get an unneeded loan in their FA pkg. They cash it out and use it for whatever they want.</p>
<p>We here have to be aware that most all of us on these boards know far, far better than the average college applicant who is not only clueless but often plied with useless and even harmful information about all aspects of the college process. The colleges and high schools are often major culprits in this misinformation along with mainstream and other media snippets that scream how easy it is and how to get that free money. Just being on these board, there are often ads offering free money for college on the screens. I truly think that each college getting federal funds needs to have someone well trained that can cut through the bull and lay it out for the students.</p>