Understanding Loan Default Among Community College Students

2021 ◽  
pp. 009155212110014
Author(s):  
Lyle McKinney ◽  
Jacob P. Gross ◽  
Andrea Burridge ◽  
Brittany Inge ◽  
Alexander Williams
Keyword(s):  
College Students ◽  
Community College ◽  
Community College Students ◽  
Multinomial Logistic Regression ◽  
Research Question ◽  
Pell Grant ◽  
Full Time ◽  
Lower Income ◽  
Loan Default ◽  
Federal Loans

Objective: The purpose of our study was to identify the factors associated with federal loan default among a nationally-representative sample of community college students. The guiding research question was: For community college students who borrow federal loans, to what extent do demographic, academic, and enrollment characteristics relate to default? Methods: Using data from the Beginning Postsecondary Students Longitudinal Study (BPS:04/09), our analysis focused on loan repayment outcomes six years after enrollment for students who began their postsecondary careers at a community college (i.e., a public, two-year institution) and had not transferred to a four-year institution. The analytic methods included descriptive statistics and multinomial logistic regression. Results: Compared to their peers who did not use federal loans, borrowers were more likely to be female, unmarried, lower-income, a Pell Grant recipient, and enrolled exclusively full-time. Regression results indicated that compared to borrowers still in repayment, defaulters were more likely to be male, first-generation college, lower-income, enrolled in workforce certificate and applied associate degree programs, lateral transfers, and non-completers. Notably, two-thirds of the defaulters had $5,000 or less in outstanding debt. Conclusions: Many of the student groups that have traditionally experienced the lowest rates of success at the community college are also the populations more likely to default on their loans. Relatively low levels of debt can still place severe financial hardship on community college borrowers. We propose several modifications to federal loan policy and institutional practices that could help reduce the number of community college borrowers who default.

scholarly journals The Impact of Pell Grant Eligibility on Community College Students’ Financial Aid Packages, Labor Supply, and Academic Outcomes

2018 ◽  
Vol 40 (4) ◽  
pp. 557-585 ◽  
Author(s):  
Rina Seung Eun Park ◽  
Judith Scott-Clayton
Keyword(s):  
College Students ◽  
Community College ◽  
Labor Supply ◽  
Community College Students ◽  
Financial Aid ◽  
Academic Outcomes ◽  
Indirect Evidence ◽  
Pell Grant ◽  
Federal Loans ◽  
The Impact

In this article, we examine the effects of receiving a modest Pell Grant on financial aid packages, labor supply while in school, and academic outcomes for community college students. Using administrative data from one state, we compare students just above and below the expected family contribution cutoff for receiving a Pell Grant. We find that other financial aid adjusts in ways that vary by institution: Students at schools that offer federal loans borrowed more if they just missed the Pell eligibility threshold, but at other schools, students were instead compensated with higher state grants. Focusing on the loan-offering schools, we find suggestive evidence that receiving a modest Pell Grant leads students to reduce labor supply and increase enrollment intensity. We also provide indirect evidence that students’ initial enrollment choices are influenced by an offer of Pell Grants versus loans.

The Answer Is Yes

2016 ◽  
Vol 45 (2) ◽  
pp. 79-98 ◽  
Author(s):  
John M. Grubb ◽  
Pamela H. Scott ◽  
Donald W. Good
Keyword(s):  
College Students ◽  
Community College ◽  
Community College Students ◽  
Dual Enrollment ◽  
Future Research ◽  
Full Time ◽  
Student Aid ◽  
Fall Semester ◽  
Northeast Tennessee ◽  
The Impact

Objective: The study assesses the impact of dual enrollment participation on remediation and completion for traditional first time, full-time freshmen at a community college in Northeast Tennessee. Method: This study began with the full population of 1,232 students who enrolled between 2008 and 2012 at a community college in northeast Tennessee the fall semester after finishing high school. The population was required to have American College Testing (ACT) scores, completely fill out the Free Application for Federal Student Aid (FAFSA), enroll full-time as a degree-seeking student, and complete the first fall semester. Propensity score matching was utilized to eliminate self-selection bias and enable parametric comparisons using optimal matching of dual enrollment participants and non-participants while controlling for a range of covariates. Results: The analyses showed that community college students who participated in dual enrollment were (a) 9% or nearly 3.4 times less likely to take remediation, (b) 26% or nearly 2.5 times more likely to graduate in 2 years, and (c) 28% or nearly 1.5 times more likely to graduate in 3 years. Contributions: This study contributes to the literature showing that dual enrollment reduces remediation rates and assists in timely completions for community college students. Policy recommendations are to increase equitable participation, normalize dual enrollment for students academically able to do college coursework, align state terminology with the nation, and improve data for future research.

The Road to Becoming a Scientist: A Mixed-Methods Investigation of Supports and Barriers Experienced by First-Year Community College Students

2020 ◽  
Vol 122 (2) ◽  
pp. 1-50
Author(s):  
Xueli Wang ◽  
Kelly Wickersham ◽  
Seo Young Lee ◽  
Na Bedolla Lor ◽  
Ashley Gaskew ◽  
...  
Keyword(s):  
College Students ◽  
Community College ◽  
Community Colleges ◽  
Mixed Methods ◽  
Community College Students ◽  
Interview Data ◽  
Full Time ◽  
The Road ◽  
Stem Programs ◽  
Stem Students

Background Although a long line of research has been devoted to transfer pathways in general, there remains limited work on the capacity for community colleges to cultivate STEM baccalaureate transfer. In particular, both quantitative and qualitative evidence is extremely sparse on how STEM-aspiring students beginning at community colleges experience supports and barriers on their journey to pursue a STEM baccalaureate. Purpose This mixed-methods study addresses the question: What salient factors are associated with beginning community college STEM students’ decisions to transfer into baccalaureate STEM programs, and how do students describe the supports and barriers they experienced specifically pertaining to these factors? Research Design Guided by the STEM Transfer model, we carried out this research using an explanatory sequential mixed-methods design. We incorporated survey, administrative, and interview data from three large two-year institutions in a Midwestern state. We applied Artificial Neural Network (ANN) techniques to identify factors associated with beginning community college STEM students’ decisions to transfer into baccalaureate STEM programs. Based on the factors that emerged from ANN, we analyzed the interview data to give meaning to the identified factors using students’ rich descriptions of their experiences. Findings Results from the ANN revealed that students’ initial attitudes toward science was the most salient factor related to transfer in STEM. Following that, GPA, students’ initial attitudes toward math, transfer capital, being employed full time, major declaration, science preparation in high school, income levels above middle level, and transfer efficacy also turned out to be important variables shaping students’ transfer in STEM. Qualitative results further illustrated how the factors from the ANN exerted their impact. Conclusions This mixed-methods research illuminated significant factors shaping the road to becoming a scientist, as well as how those factors manifested their influences within the contexts of students’ educational journeys. Through this approach, we were able to establish the significance of influential factors without presuming directionality and leverage the interview data to disentangle how these factors functioned independently and together in sophisticated and nuanced ways. Our study brings forth a deeper understanding of community college students’ STEM pathways, including the many plot twists and processes involved to overcome challenges and maintain progress.

Hanging In, Stopping Out, Dropping Out: Community College Students in an Era of Precarity

2019 ◽  
Vol 121 (1) ◽  
pp. 1-30 ◽  
Author(s):  
Beth Ann Hart
Keyword(s):  
College Students ◽  
Community College ◽  
Community Colleges ◽  
Community College Students ◽  
Student Outcomes ◽  
Research Question ◽  
Two Dimensions ◽  
Structural Reform ◽  
Structural Reforms ◽  
Student Body

Background/Context Sociologists of education have documented community college students’ high postsecondary aspirations and low persistence and college completion rates. Recent research suggests that community colleges can improve student outcomes by developing structural reforms: streamlining curricula, expanding vocational programs, and improving advising. The emphasis on structural reform overlooks the ways in which community college students—who are disproportionately disadvantaged—are constrained from benefiting from even the most progressive structural reforms. This research builds on structural models by examining both the conditions and constraints under which students endeavor to succeed in the community college. Research Question The research questions guiding this analysis are: (a) What keeps students from moving in smooth and uninterrupted ways through community college? (b) Do structural reform efforts alone make sense for community college students in general and a more diverse student body in particular? Research Design This study draws on in-depth interviews with 45 community college students at two California community colleges. Students represent a range of racial/ethnic groups, ages, and traditional and nontraditional backgrounds. Findings/Results The findings revealed that forms of institutional instability identified in previous research interact with unpredictability in students’ lives, leading students to engage in “security work” (Cooper, 2014) intended to accommodate their educations to precarious circumstances. Students engage in security work across two dimensions: managing income flow (including paid work and financial aid) and managing care of families, food, housing, and transportation. Conclusions/Recommendations Findings revealed a feedback loop between precarity in community colleges and precarity in students’ lives. This article contributes to theories of student persistence by arguing that the framework of precarity importantly complements structural explanations for student outcomes in community colleges.

scholarly journals Instructional Practices of Part-Time Faculty at Two-Year Institutions: Observations and Implications

2020 ◽  
Vol 9 (2) ◽  
pp. 156
Author(s):  
Yahya Mohammad Alshehri
Keyword(s):  
College Students ◽  
Community College ◽  
Community College Students ◽  
Teaching Practices ◽  
Faculty Members ◽  
Full Time ◽  
Negative Effects ◽  
Part Time Faculty ◽  
Part Time ◽  
Time Faculty

This paper attempts to shed more light on the teaching practices of part-time faculty members and their impacts on community college students. It has been found that part-time faculty members employ traditional teaching practices compared to full-time faculty members. These teaching practices have, to varying degrees, negative effects on community college students. It has also been found that some of the compelling factors that hinder part-time faculty from utilizing effective teaching practices are institutional and departmental policies and practices. This paper identifies some gaps in the literature and calls future studies. It delineates a couple of recommendations aiming at improving the teaching practices of part-time faculty as well as their working condition. 

Financially Eligible Pell Grant Community College Students’ Perceptions of Institutional Integration

2016 ◽  
Vol 19 (3) ◽  
pp. 333-356 ◽  
Author(s):  
Mia Ocean
Keyword(s):  
College Students ◽  
Community College ◽  
Community College Students ◽  
Thematic Analysis ◽  
Low Income ◽  
Academic Progress ◽  
Pell Grant ◽  
Institutional Integration ◽  
Integration Model ◽  
Unfair Treatment

There is a wealth of literature on the integration of university students increasing retention and ultimate completion, yet much less is known about the connections or disconnections that exist for community college students. Therefore, I interviewed financially eligible Pell Grant community college students ( n = 62) about their connections to their institutions, and I subsequently conducted a thematic analysis of the data. Students’ experiences of integration ranged from feeling they created a family to perceiving unfair treatment. Overwhelmingly, students felt connected to their community college. However, some students who were not meeting satisfactory academic progress described a disconnection to their community college. The results indicate a need to reevaluate the satisfactory academic progress criteria and develop an integration model specific for low-income community college students.

Academically Eligible and Ineligible Pell Grant Community College Students: A Qualitative Investigation

2021 ◽  
pp. 009155212098201
Author(s):  
Mia Ocean
Keyword(s):  
College Students ◽  
Community College ◽  
Student Success ◽  
Cultural Capital ◽  
Community College Students ◽  
Pell Grant ◽  
Empowerment Theory ◽  
Student Groups ◽  
Barriers And Enablers ◽  
Case Comparison

Objective: The purpose of this research is twofold: first, to investigate financially eligible Pell Grant community college students’ perceptions of barriers and enablers to student success, and second, to critique the financial aid satisfactory academic progress (SAP) criteria through a cross-case comparison of students who are meeting and are not meeting the academic requirements. Method: To complete this investigation, I conducted semistructured interviews with financially eligible Pell Grant community college students ( N = 62) who were meeting SAP ( n = 31) and who were not meeting SAP ( n = 31). To analyze the data, I drew on Brint and Karabel’s theory of democratization and diversion as well as Gutiérrez and Lewis’s conceptualization of empowerment theory, and I followed Braun and Clarke’s six-step iterative thematic approach. Results: Financially eligible Pell Grant community college students believe students need motivation, enough resources to meet their responsibilities, and cultural capital to succeed. Observable differences were identified between the two student groups in three areas: environmental responsibilities to resources ratios, cultural capital, and powerlessness. Contributions: Through this article, I created a platform for the voices of financially eligible Pell Grant community college students and their perceptions of barriers and enablers to student success. By conducting the cross-case analysis, the potentially arbitrary nature of the SAP criteria is apparent, despite the real consequences they create for students. This research contributes a long overdue qualitative critique of the SAP criteria, but additional research is warranted.

scholarly journals Is School Out for the Summer? The Impact of Year-Round Pell Grants on Academic and Employment Outcomes of Community College Students

2020 ◽  
Vol 15 (2) ◽  
pp. 241-269 ◽  
Author(s):  
Vivian Yuen Ting Liu
Keyword(s):  
College Students ◽  
Community College ◽  
Low Income ◽  
The United States ◽  
Pell Grant ◽  
Full Time ◽  
Percentage Point Increase ◽  
Administrative Dataset ◽  
Percentage Points ◽  
The Impact

Despite having been the largest source of financial aid to low-income college students in the United States, the traditional Pell Grant had one major limitation: If students enrolled in two semesters full-time, they would not have had any tuition support for the summer term of the same academic year. The year-round Pell (YRP) was implemented in the academic years 2009–10 and 2010–11 to provide a second Pell Grant to students who enrolled in more than twenty-four credits prior to the third semester and in at least six credits during the summer term. Using a state administrative dataset from a community college system, this paper uses a difference-in-differences approach to examine the credit, credential completion, and labor market outcomes resulting from the YRP. The study finds that for each $1,000 of additional YRP grant funding, summer enrollment increases by 28 percentage points, diploma completion rates increase by 1.6 percentage points, and third-year earnings from college entry increase by $200. For YRP-eligible students who started in a short-term program, the gains are a 2 percentage point higher certificate attainment rate, 3.6 percentage point increase in associate degree completion, and no effect on four-year transfer rates.

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