NC lawmakers on student loans: Who gets to decide?

Associated Press

RALEIGH, NC (AP) — Some North Carolina community college presidents want to reverse a new law making low-interest federal loans available to nearly 200,000 students who may be eligible.

The community college officials want to reverse the law that beginning in July would force all 58 campuses to participate in the loan program. Thirty-eight schools don’t participate now, including campuses in major cities including Durham, Winston-Salem, and Charlotte.

The college presidents want to keep participation in the federal loan program optional. They say students don’t need loans because they have other options. Schools could lose all federal financial aid if they show high default rates.

A state senator who studied the issue calls that risk “minuscule.”

A House committee debates the question Tuesday.

(Copyright 2011 by The Associated Press. All Rights Reserved.)

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