Administrators at Grand Rapids Community College are trying to reduce the amount of debt it accumulates when students who receive financial aid drop out of school.
Each year, thousands of students at GRCC receive federal assistance to help them cover the cost of a college education. But that aid must be repaid when students drop out of college shortly after receiving it. Often, it’s difficult to collect and GRCC ends up absorbing it.
In the 2010-11 academic year, for example, the college reimbursed the federal government for $1.8 million in financial aid students received – but because they dropped out – weren’t eligible for.
“It’s a significant issue for community colleges and higher education institutions across the state and across the country, and certainly something that many of us are working towards” solving, said Lisa Freiburger, GRCC’s vice president for finance and administration.