Friday, July 09, 1999
Central State warned of defaults
Closing possible for university
The Cincinnati Enquirer and Cox News Service
Central State University and 13 other historically black colleges and universities could lose federal financial aid — and be forced to close — unless they reverse soaring default rates, a government-sponsored corporation reported Thursday.
The Student Loan Marketing Association, known as Sallie Mae, said the schools had default rates of 25 percent or more during the fiscal years 1994, 1995 and 1996.
Under a 1998 law, these schools could be declared ineligible to provide need-based federal financial aid for their students.
“Most of these 14 institutions would close if they could not participate in federal financial aid programs,” the report warned.
The schools must submit default-management plans to the U.S. Department of Education. They have three years to improve default rates.
Central State's default rate for fiscal year 1997 dropped below 25 percent, according to university president John Garland. Those figures have not yet been certified by the Department of Education.
Central State is in Wilberforce, Ohio, about 15 miles east of Dayton. The state took over the school's finances in 1997 after years of financial troubles, some of which state officials attributed to mismanagement.
New leadership and state intervention have Central State administrators optimistic, spokesman Jim Cleveland said. The school enrolled about 950 students last year and expects that to expand to 1,200 students this fall, he said.
While the overall default rate on student loans at all four-year colleges and universities is about 6 percent, the problems of student debt extend far beyond these 14 historically black institutions, said Albert L. Lord, Sallie Mae's vice chairman and chief executive officer. “This issue is rather color-blind, frankly.”
The Department of Education lists 45 schools — mostly community colleges and for-profit trade schools — that face immediate expulsion from the federal aid programs because of their high default rates.
Not surprisingly, the report found that poor students are the least likely to repay their loans.
It also found that the troubled institutions lacked the technology needed to track student data. Many lost track of students who transferred to other colleges, for instance, and could not inform them on ways to defer payment rather than to default.
Keeping students in school reduces the default rate, the report indicates, so it advocates “more mentoring, academic advising, peer counseling and tutoring” to prevent dropping out.
Housing demand near stadiums expected to rise
Study: Ohio in 25-year decline
For sale: Lake Erie island
Gap yawns between whites, black on Net
New-trial petition says Bible led jury
Zoo babies take the stage
THE ZOO MOMS
Casino's security reviewed after theft
Central State warned of defaults
Chief pleads guilty, resigns, but may keep job
Child loses Tay-Sachs fight
City crime rate drops 13% but experts restrain cheers
Councilmen question purpose of gun suit
Boy rescued from hotel pool
Dress code spiffs faculty
Man survives car crash by ducking
Parole in Partin case undecided
Smooth jazz has cool comeback
GET TO IT
Candidate calls for federal probe of shooting
Children's, Good Sam on best-hospitals list
City cable systems irk private business
Ex-official seeks Edgewood job
Father, son sue Cheviot over arrests
Girl, 10, calls 911 after fleeing fire
Kids play, learn in parks
Lawsuits claim Middletown violated open-meetings law
Mediation project wins Clermont courts $74,180
Museum expands to old post office
N.Ky. Homefest puts builders' best on display
Park helps residents celebrate officer's life
Safety, comfort priorities in Ross schools' face lift
Sewage-plant fight brews
Shopping center to shorten a food trip
Talawanda schools to receive $1.5M from state
Tax-credit bonds idea behind bill for school repair
Teen taking year to learn in Germany
TRISTATE DIGEST
Warren landfill issue moves to courtroom
