A high default rate led Secretary of Education Terrel Bell to announce the elimination of federal government loans to Austin Community College students. More than 400 schools nationally also will lose federal loan funding. ACC’s default rate was announced to be 30 percent, down 10 percent from the previous year, but still above the 25 percent cut off for Federal Loans. Overall, the effect was minimal as most ACC students did not take out Federal Loans. In 1980-81 only $2900 worth of these loans were taken out by ACC students.
Source: Austin American-Statesman, July 29, 1982