Southwestern College should loosen up financial aid disbursement policies

Southwestern College should loosen up financial aid disbursement policies

By Albert H. Fulcher

Published: Thursday, December 18, 2008

Stock markets across the world are ricocheting like bullets in a steel room. Banks, auto makers and retailers are closing, merging and scrambling just to survive. Food costs are rising daily and the cost of fuel has traumatized our back pockets.

At a time the demand and cost of education is rising, the budget for continuing education is falling rapidly. California colleges and universities are turning away qualified students seeking affordable education. Banks are dropping out of the student loan business at a time when the need for financial aid among students is greater than ever.

Due to course cuts many students wrestle to get into the classes they need for degrees, only to find it just as tough to cover the cost.

Southwestern College students, along with students across the country, are fighting to earn what is a necessity in today’s world-an education. State and federal grants and their dispersal are a critical element to many students’ ability to obtain an education. But some grants pay slower than others, leaving students short at the beginning of a semester.

Disbursement of grants in San Diego County’s community colleges vary as much as the terrain the campuses are built on. Each financial aid office has its own ideas to balance the students’ needs and its college’s accountability of funds. A school’s disbursement schedule is the shifting factor for many students when choosing which community college to attend.

SWC’s payouts of Pell grants lean toward protecting the school’s liability rather than serving students. Lower income, full-time students awarded with grants struggle with the initial cost of books and supplies at the beginning of the semester. Giving out the first 30 percent in the beginning of the semester is helpful in many cases, however, the amount is inadequate to guarantee the student a smooth transition into classes by having all of the textbooks and supplies required for the courses taken. It is a long wait for the second installment when the majority of the funds awarded. By then students have worked extra hours, borrowed money from family or friends, or resorted to pricey student loans.

To be fair, SWC’s policies are far from being the worst, yet they are among the toughest about withholding a hefty portion of Pell grants to the latter part of each semester. This is very stressful for students who are just eaking by.

In comparison, San Diego City College seems to have come up with a comprehensive system beneficial to students and the college. It sets up individual accounts with the campus bookstore with 70 percent of the grant awarded in the first four weeks of the semester. This allows students to buy textbooks and transportation passes a week before the semester begins.

With the remainder of the first installment sent a week after, it also gives them the incentive to spend their money wisely in the initial purchases.

This might increase the liability towards the end of the semester for the college if lots of students drop, but the benefits outweigh the risk.

Students equipped on the first day of class are more apt to be successful. There are two cushions of cash spread between the first and second installment that the student can rely on. More revenue is generated for the campus bookstore. This is a good compromise in the delicate balance of needs and liability. And so far it has worked well for City College. It is a good business model that is worth looking at.

Grants are designed to aid the student in reaching their educational goals. The payment schedule of grants for SWC students could be much worse.

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