Financial aid process causes setback

MOBILE, Alabama (WALA) - Several components of the Health Care Bill are beginning to show up. One of them, which was passed as an expedited budget has to do with financial aid on college campuses. Now Uncle Sam is the sole source for aid.

Lace Tuggle is a second year student at Faulkner State. She has spent more time in line this semester than inside the classroom.

"We come numerous days. I have been three days for two hours each day," Tuggle said.

That's because the government is no longer paying the banks to handle student loans.

Faulkner State University President Dr. Gary Branch said one important detail wasn't dealt with early enough. Who is responsible for all of the paperwork once handled by banks? Branch said his staff is working feverishly to handle the paperwork of 6,480 applications for government money.

"It's a difficult difficult job. The ladies in our financial aid office have been working from 7:00 in the morning til 10:00 and midnight every night for the past two to three week and of course the students and the parents are anxious and I can understand the short tempers," Dr. Branch said.

Under the new government regulations, the middle man has been taken out of the financial aid process. Instead of a commercial lender or private bank handling the paperwork, the college is now responsible.

"The lines are a lot longer, we wait in line anywhere from two to three hours to get in. Once we get in, it is a long process but they are trying really hard. I guess there is just not enough people to accommodate as many students as there is," Tuggle said.

Dr. Branch said all students are being permitted to attend class even if they don't have all the required paperwork completed.

"It's been great. They have been working with me and they are actually getting my student loan today so I can get my books and study for exams so I am excited I get to start!" Kaitlyn Adams said.

A spokesperson at The University of Mobile said they are experiencing similar problems such as, huge increases in paperwork, and a larger volume of students coming in.