Broward students attend a debt management workshop. John O’Connor/WLRN
“Neither a borrower nor a lender be,” Polonius advised Hamlet. At Florida’s Broward College, financial aid officer Kent Dunston tells would-be borrowers not to borrow more than they need. The two-hour money-management workshop is required. “You’ll be offered more,” says Dunston. “You don’t need it.”
Starting this year, Broward will not accept unsubsidized federal loans that require students to begin making interest payments immediately, reports NPR. Twenty-eight other community, four-year and online colleges around the country take subsidized loans only to prevent defaults. Broward has gone farther: The college no longer accepts private loans.
About 75 students were in (Dunston’s) class on a recent day, listening as he tells them the story of a young woman concerned about how her $137,000 student debt might affect her chances of getting married.
“That can throw a lot of cold water on a relationship, unless the guy can say, ‘Well, that’s OK baby, I owe $87,000 myself,’ ” Dunston says.
Broward student George Aleman thinks he owes about $60,000 in student loans. The middle-school dropout, who went on to complete his GED, came to Broward already owing that much in debt from a previous attempt at trade school.
The Broward College admissions and financial aid staff “couldn’t believe that I owed so much, and I only have an associate’s degree,” he says.
Aleman is eligible for one more year of loans. After that, he’ll have to pay Broward’s tuition of $2,400 a year and cover his living expenses.
Debbie Cochrane with The Institute for College Access and Success “fears that rejecting unsubsidized loans may force some students to turn to credit cards or other high-interest loans to pay for school and living expenses,” reports NPR.
Broward’s default rate has fallen to 12 percent, lower than the national rate of 13.7 percent.