Naperville Sun - College Loan Burden Topic of COD Event

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Duckworth is cosponsor of the Student Loan Relief Act of 2013 (U.S. House Bill 1595) that would put a temporary freeze on the interest rate hike on student loans.

But she noted the temporary nature of the fix, pointing out that the increase would mean another $1,000 in costs to the more than seven million students who take out loans nationwide.

"We can't let the student loan rates double," she said.

Most of the hour was spent listening to suggestions for easing the financial burden of students and hearing different approaches taken by various colleges to help students navigate budgets and prepare for the time when they have to begin paying back their loans.

Earl Dowling, COD vice president of Enrollment Management, said that the college is taking a broad-based approach to the problem.

"We're addressing the entire financial literacy issue," he said, stressing that preparing students for personal budgeting and the possible pitfalls of credit cards was included in COD's approach.

Dowling also said that COD offered installment plans for students to pay their tuition, in order that their overall debt load could be eased.

A major pitfall for many seeking or already relying on student loans is the significant percentage of students in the non-traditional age group, many past 30 who are already struggling with other debts.

One of those students is COD student Tamikia Charles, 36, who lost her job and found herself back in college to prepare for a new career.

"I'm really afraid of the interest rates going up," she said. "A lot of students aren't even aware of the interest."

COD student Susan Dose and her husband both lost their jobs in 2010 within a few days of each other, and the cost of her education, plus the loans the family seeks to pay for her children's college, has her on edge.

"This is the first time in my life I've been in debt," she said, "and it scares me."

College representatives offered Duckworth suggestions. Amy Perrin of Elgin Community College spoke of the threat that money from the Department of Education for work study programs may dry up, stressing that 70 percent of ECC's work study is funded by the Department of Education.

Dowling said that the COD work study program is his favorite form of student aid, but noted that many of the regulations for the federal program were written by people with no experience in the two-year college environment.

He also stressed that there is a need for internships with "pipelines to employment" that students could access.

There seemed to be an agreement among the group that a need existed for companies partnering with colleges in internship programs to provide paying internships.

Duckworth agreed, but noted that business interest have to be considered as well.

"They're taking a chance," she said.

As for HB 1595, she is confident that it will pass, but cautioned that a permanent solution is needed.

"We need to put the pressure on to find a final solution," she said.

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