CNA-12-28-2015

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TOPPING $1 BILLION

HALL OF FAMER

“Star Wars: The Force Awakens” has reached $1 billion at the box office, achieving the milestone with record-setting hyper speed. More on 8A of today’s paper. >>

Rita Schroeder, longtime SWCC volleyball coach, graduate, and student-athlete, will be inducted into SWCC’s Athletic Hall of Fame Jan. 23. See page 5A.

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MONDAY, DECEMBER 28, 2015

SWCC BUCKLES DOWN on student loan default prevention By KELSEY HAUGEN CNA staff reporter khaugen@crestonnews.com

Nationwide, community college students as a whole make up a small percentage of the United States’ more than $1 trillion in outstanding student debt, as two-year students often borrow less than $10,000. Yet, in Iowa, a peculiar problem exists that students who borrow a small amount are actually more likely to default – fail to make payments as legally agreed upon – than students who take out huge loans. “You would think the student who owes $25,000 would be more likely to default than the student who owes $4,000, but data across the state tells us the opposite,” said Beth Kulow, Southwestern Community College (SWCC) dean of Kulow student services. “Most of our defaulters owe (about $4,000), so if you think about the cost of a semester at Southwestern, you can make the association pretty quickly: kids who come for only one semester are the highest defaulters. That’s why students who have less debt are more likely to default – they’re not relying on a credential to get them a job.” To bring attention to the high default rates in Iowa and to examine the complexities students face in repaying loans, the national Association of Community College Trustees (ACCT) published a loan report using data from 16 Iowa community colleges. Using the report, Southwestern Community College (SWCC) has developed a more comprehensive default prevention plan to help its students better manage their debt and avoid defaulting.

Individual default A student will enter default after failing to make a payment for a certain number of days, depending on the type of loan and repayment plan. In 2011, 7,680 of 27,675 student borrowers (27.8 percent) who attended at least one Iowa community college defaulted on their loans by

CNA graphic by KELSEY HAUGEN

January 2015, according to ACCT’s report. Default has a significant impact on a student’s credit rating. Even if a student pays off a defaulted loan, the violation remains on his or her credit history for up to seven years.

Cohort Default Rates

A student’s default status also affects his or her college’s cohort default rate (CDR), which is the number of borrowers who defaulted during a period of three years divided by the number of total borrowers who entered repayment in those three years. “There’s not a whole lot our institution can do to directly affect this issue,” Kulow said. “If a student only owes $232, and they pay it all off at once, but they were in default, they’re still in default. So, a student could have no debt and still be associated with our default rate ... until their three-year cohort period ends.” A high CDR is bad for an institution because it puts their Title IV aid eligibility at risk. If a college’s CDR is more than 30 percent for three consecutive years or 40 percent in a given year, it will lose eligibility to give out Direct Loans and Pell Grants for

This pie chart shows the loan status as of January 2015 of Iowa community college borrowers who entered repayment in fiscal year 2011. The Association of Community College Trustees (ACCT) gathered this data from 16 Iowa community colleges for its loan report titled “A Closer Look at the Trillion: Borrowing, Repayment and Default at Iowa’s Community Colleges.” ACCT collected this data from the National Student Loan Data System.

three years. “All the Iowa community colleges are below the penalty line,” said Jerry Smith, representative for Iowa Association of Community College Trustees (IACCT) and SWCC board member. “Currently, there are committees at work at IACCT, and the community college financial officers have formed committees. The financial officer at DMACC (Des Moines Area Community College) is working very hard on strategies that all Iowa schools can move forward with.” While all of Iowa’s community colleges are under the penalty line of 30 percent, many of the colleges’ CDRs are above the national average of 20.6 percent for public two-year colleges, SWCC | 2A

CNA photo by IAN RICHARDSON

Accident: Two vehicles sit in the ditch on Cherry Street Road following an accident 10:20 a.m. Thursday that resulted in

an estimated $11,000 in damages. According to a Union County Sheriff report, Elijah Blue Hoyt, 17, of Orient, driving a 2000 Jeep, said he was traveling south on Cherry Street Road when a vehicle in front of him started to slow down; Hoyt said he applied his brakes and lost control because of snow on the road, entering the northbound lane and striking a 2007 Chevrolet driven by Justin Taylor Queener, 20, 300 N. Lincoln St. Hoyt’s vehicle entered the ditch, and Queener’s vehicle spun around and came to a stop in the northbound lane facing south. Queener was transported by ambulance to Greater Regional Medical Center with suspected minor injuries. Hoyt was cited with failure to provide proof of insurance. Damage estimate is $4,000 to Hoyt’s vehicle and $7,000 to Queener’s vehicle.

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CNA photo by KYLE WILSON

Bob Cottrell, maintenance manager at The Iowana in Creston, scoops snow off the sidewalk along West Montgomery Street this morning. National Weather Service is predicting 6 to 8 inches of snowfall in Creston by Tuesday morning.

NWS predicts snowstorm will dump 6 to 8 inches on Creston By KYLE WILSON CNA managing editor

kwilson@crestonnews.com

A winter storm warning is in effect for every county in Iowa until 6 a.m. Tuesday. Two inches of snow had already fallen in Creston by 11 this morning. The National Weather Service (NWS) is predicting 6 to 8 inches of total snowfall in southwest Iowa by Tuesday morning. Ames and Mason City could see more than 1 foot of snow. Travel conditions deteriorated quickly in Creston this morning, and another round of moderate to heavy precipitation is expected to arrive by mid-afternoon. “If you can stay at home today, do so,” said Jo Duckworth, emergency management coordinator in Union County. “It’s not going to be pretty. We will have gusts up to 40 miles per hour, and east and west roads, especially, will be severely impacted.” Duckworth said if you must travel, make sure to

“If you can stay at home today, do so.” — Jo Duckworth

Union County emergency management coordinator

pack warm clothes, charge your cell phone and practice safe winter driving techniques like doubling the space between you and the car ahead of you. Duckworth said power outages are possible this evening and sugg e s t s having a plan of action in case that does occur. Duckworth T h e high temperature for today in Creston is expected to reach 26 degrees with an overnight low of 17 degrees. Frigid temperatures are expected the rest of the week with Thursday’s high temperature only 12 degrees.

A DR. BEN CARSON FOR PRESIDENT RALLY REVIVAL-REVOLUTION It’s not politics as usual. It’s a revolution. CRESTON DEPOT COMMUNITY ROOM SATURDAY, JAN. 23 7 PM

BEN CARSON RALLY


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CNA-12-28-2015 by Shaw Media - Issuu