Direct Loan Program Suspended at Wiregrass Georgia Technical College

July 17, 2013

Wiregrass Georgia Technical College has made the decision to suspend the Federal Direct Stafford Loan Program. This decision came after much thought and research. Wiregrass began the Direct Loan Program in the fall of 2012 to help defray the costs incurred by students when the HOPE Program was changed.

In the spring of 2013, we reviewed our Direct Loan status and found that the amount that students were borrowing was exorbitantly higher than what was needed to cover tuition and fees not paid for by other financial aid funding sources. Students only used 9.4% of what was borrowed from the Direct Loan Program for tuition and fee balances. The remaining 90.6% was used for personal purposes. This pattern of borrowing coupled with the doubling of the student loan interest rate will lead to an increased accumulated debt for the college resulting in a negative effect on our funding sources if action is not taken now.

We understand that this may cause hardship to those students who were using the Direct Loan Program to finance their education. This decision was made to protect the college’s financial stability and the ability to award financial aid funds to eligible students for years to come. Wiregrass has many other options to help students finance their education without going into debt for themselves and without causing financial debt for the college.