Banks Back Off Student Loans at Community Colleges

The New York Times reports that many major national banks, in the midst of the current credit crisis, are no longer awarding loans to students at less competitive institutions, including community colleges. The article makes the point that because so many community colleges are a stepping stone to other institutions or job opportunities, the effect will be felt most by the neediest students. Still, according to a new report covered in the Washington Post today, making the switch from a community college to a 4-year college comes with its own complicated mass of red tape.

An unprecedented number of Americans now say a college education is necessary for success in the workplace, according to Squeeze Play: How Parents and the Public Look at Higher Education Today. Vast majorities say costs should not prevent qualified students from attending, yet 62 percent say many qualified students do not have the opportunity for a college education. The public blames colleges and universities, in part, for these spiraling costs, with more than half (52 percent) saying colleges are like a business and mainly care about the bottom line.