All of the nation’s historically black colleges and universities eligible for federal funding are below the U.S. Department of Education’s threshold for student loan default rates, based upon three-year repayment data.
It is the third consecutive year that participating HBCUs have not faced removal from Title IV and Pell Grant funding programs for posting loan default rates greater than 30 percent for three consecutive preceding years.
HBCUs have deployed innovative approaches towards default management and reduction. Such strategies include implementation of a default management plan that engages stakeholders, identifies approaches to reducing default rates, and tracks measurable goals. These schools have increased borrower awareness of obligations through incorporating borrower topics at orientation sessions and providing enhanced entrance and exit counseling. Other best practices include borrower tracking, increased contact with delinquent borrowers, taking advantage of the cohort default rate challenge/adjustment/appeal processes, and partnering with other stakeholders to optimize default prevention, resolution, and reduction.
Federal Student Aid Loan Default Fact Sheet – U.S. Department of Education
The national student loan default rate for all colleges and universities in the 2015 cohort is 10 percent. HBCUs which exceeded the default rate since 2010 include:
Talladega College – 32 percent (2015)
Virginia Univ. of Lynchburg – 33 percent (2014), 35 percent (2013)
Hmm interesting so the schools that do fall below the 30% default rate who are they and what is there punishment? If HBCUs are a 100% in compliance than all of the defaulted institutions are PWIs! So who are they and how do you all punish them.
Schools that participate in the program are required to maintain specific criteria. For instance, if a schools has a default rate that exceeds 30% for 3 years consistently, the school runs the risk of losing their Direct Loan and Pell Grant eligibility. If a school is one year over 40%, they run the risk of losing their Direct Loans only. Schools may appeal or challenge, but if their appeal is unsuccessful, they are then subject to sanctions by the Department. All schools fall into this requirement. And yes, many of the PWIs are in default that the HBCUs.
In general terms, the problem is not that SACS is not following their procedures. The challenge is that their procedures have a disparate impact on HBCUs, meaning that they have a discriminatory effect on our institutions. The proof is in her own stats. In the last 30 years 43% of the institutions dropped by SACS have been HBCUs while they represent only 9% of their member institutions (see how I turned her stats around). DISPARATE IMPACT. That is the legislation that all HBCUs should be pursuing… Where are the Thurgood Marshalls of the day?
I’m unsure who wrote this section, but the data you have is incorrect. The National Average 10.1% for all schools that participate in the Title IV program. However, HBCU only factor in a small component of that percentage. If you actually look at the data, HBCU have a higher rate than the national average. If we are going to report the facts, we need to make sure they are clear and accurate.