Exploring Federal Loan Opt-Out at Community Colleges

• In Event: AERA Graduate Student Research-in-Progress Session 5
  In Roundtable Session: Federal and Institutional Policy Issues in Higher Education: Title IX, Federal Loan Opt-Out, and Test-Optional Admissions (Table 4)

Abstract

This study focuses on a phenomenon where some community colleges choose to withdraw from the federal student loan program, a process I refer to as "opt out". This practice impacts nearly one million students nationwide, leaving potential borrowers with riskier loan options such as private loans and credit cards. Limited research exists on why institutions adopt this strategy as opposed to other default prevention tactics. This study seeks to inform discussions surrounding equitable access to education and the nuances behind institutional financial aid policies.

Author

• Amanda Addison, Vanderbilt University