Last fall while registering students to vote in Ohio, I called a student who had filled out incomplete information on his voter registration form. I was surprised to learn he was taking the semester off. He had moved back to his hometown after his financial aid didn’t come through for the semester. Unfortunately, what I had thought was an isolated incident was part of a bigger problem seen at many schools, particularly historically black colleges and universities (HBCUs).
The Department of Education changed the criteria for “credit worthiness” for applicants of Parent Plus Loans, resulting in an increased number of loan denials before the start of the fall 2012 semester. These changes forced many students between a rock and a hard place. Though students who don’t qualify for Parent PLUS loans are provided the option to receive additional loan funds, the cap on this increase doesn’t always make up the loss of the Parent Plus loan, preventing these students from being able to continue their education.
HBCUs have seen a disproportionate amount of students affected by this change. Over 14,600 HBCU students were denied Parent PLUS loans this past fall.
The 5 hardest hit HBCUs are:
- North Carolina Central University (NC): 609 students denied loans
- Howard University (DC): 607 students denied loans
- Florida A&M University (FL): 569 students denied loans
- Prairie View A&M (TX): 528 students denied loans
- Grambling State University (LA): 523 students denied loans
The Department of Education’s changes for Parent PLUS Loan standards has had a clear impact on black students and will severely impact HBCUs.
- At Tuskegee University, approval for Parent PLUS loans plummeted from 55% to 23% this year past year.
- HBCUs have lost millions of dollars in revenue. Hampton University has cited a loss of $6 million dollars.
- Morehouse College shut down during spring break with all members of faculty and staff on furlough in an effort to cut back costs for the college.
What do you think should be done to solve this problem? How should this credit standard change? Please share your thoughts in the comment section.