Support loan to the majority of black students

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Bowie, November 9, 2021 (GLOBE NEWSWIRE) –
WASHINGTON, DC (November 9, 2021) – More than 87% of black students who historically attend black colleges and universities (HBCU) strongly support debt cancellation. Additionally, over 90% of black borrowers support other policy solutions to address institutional funding disparities and lack of family wealth that leave black HBCU graduates with significantly higher student loan debts than their white peers. , according to a national study and focus groups. led by the United Negro College Fund (UNCF), the Center for Responsible Lending and the UNC Center for Community Capital.

A 16-minute documentary released today, featuring Congresswoman Alma Adams, student debt policy experts and HBCU alumni borrowers brings to life the burdens borne by alumni of the HBCU, who find great value in their university experiences but suffer from higher debt loads. Historical and ongoing systemic racism means these students have less family wealth to draw upon, and HBCUs are historically underfunded.

See “My Backyard, My Debt: The HBCU Student Borrower Experience”.

A panel of stakeholders discussed the main findings of the study and research via Facebook Live.

Participating panelists were Representative Alma Adams, (D-NC 12); Derrick Johnson, CEO of the NAACP; the Reverend Cassandra Gould, Executive Director, Missouri Faith Voices; Ashley Harrington, Senior Federal Student Aid Advisor; and Robert Stephens, policy director, Voices for Progress. The panel was moderated by Jaylon Herbin, Partner of the Center for Responsible Lending Outreach.

Funded by the Lumina Foundation, the study compares the financial experiences of current and former black students attending HBCUs with their black peers at predominantly white institutions (PWI), as well as with their white peers.

“The story of HBCU is one of triumph over adversity. Our institutions have had to overcome historic underfunding in relation to PWIs, and they have suffered from the legacy of Jim Crow, said Congressman Adams, Founder and Co-Chair of the Congressional Bipartisan HBCU Caucus, “Sadly, the crisis of Student loan debt also plays a disproportionate role in the lives of HBCU students, many of whom are the first in their families to complete the FAFSA form. Families of color are more likely to borrow and borrow more and in larger amounts to finance their education. As the $ 1.7 trillion student debt crisis affects 44 million families nationwide, the burden weighs heavily on black students. This is why I am in favor of canceling the heavy debt of our students: it is not only the right thing to do, it is also good public policy.

“The work that UNCF and CRL have done through this study is vital. There is a significant gap between how black students experience student debt compared to how the rest of the world understands student borrowers and their ability to achieve repayment status. Black students often need to use borrowed funds to support their families, not just to complete their education as planned, ”said Dr. Nadrea Njoku, Acting Director, Frederick D. Patterson Research Institute, UNCF. “It delays their ability not only to graduate, but it creates a vicious cycle that they may not escape from needing to work and support their families while needing to complete an education that they would like.” ultimately beneficial, as well as to their families. The recommendations made by the students included in this study help shift the focus of college funding from obtaining a college education with an unwarranted lifelong financial burden that cripples students and their families to a place where students receive. the freedoms and social mobility they were looking for from the start. These students come from disadvantaged backgrounds and must be on the front lines to cancel the heavy debt. “

Here are some of the main findings of the survey:

● HBCUs have mobilized to support their students during COVID-19. Almost a third of black HBCU students (31%) received emergency aid from their institution, compared to about a fifth of black PWI students (21%) and even fewer white students (18%).

● Black borrowers receive and provide financial assistance from / to their families. Research has established that HBCU students typically graduate with much higher debt than their non-HBCU peers, and this data suggests that they share financial resources with their families while in college, both in receiving financial support and sometimes giving it.

● Many student borrowers report skipping meals because there was not enough money to eat, including 29% of black students in PWIs and 44% in HBCUs.

● Black women receive less financial support from their families during their college education than black men, and they tend to have more difficulty than their male counterparts during repayment.

● Black respondents indicate that they are overwhelmingly supporting $ 50,000 in blanket student loan cancellations. A strong majority (85%) of black borrowers indicated that they were strongly in favor of canceling student loans. More than nine in 10 black respondents are also in favor of eliminating interest payments on all student loans, increasing public funding for HBCUs, increasing the amount of the Pell grant, and canceling for people who have been defrauded by their institutions.

Joint UNCF and CRL policy recommendations include blanket student debt cancellation; increase federal funding for HBCUs; increase the amount of the Pell grant; improving income-based reimbursement programs; and reduce interest, end interest capitalization, and eliminate origination fees on federal student loans.

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About the Lumina Foundation

Lumina Foundation is an independent private foundation in Indianapolis committed to providing learning opportunities for all beyond high school. We envision a system that is easy to navigate, delivers fair results, and meets the nation’s talent need through a wide range of credentials. Our mission is to prepare people for enlightened citizenship and for success in a global economy.

About the Center for Community Capital at the University of North Carolina at Chapel Hill

The Center for Community Capital is a non-partisan, multidisciplinary research center located within the University of North Carolina at Chapel Hill and is a leading center for research and policy analysis on the power of financial capital for transforming households and communities in the United States. States. The Centre’s in-depth analyzes help policymakers, advocates and the private sector find sustainable ways to expand economic opportunities to more people, more effectively.

About the Certificate Revocation List

The Center for Responsible Lending (CRL) strives to ensure a fair and inclusive financial market that creates opportunities for all creditworthy borrowers, regardless of their income, as too many hard-working people are deceived by dishonest and harmful practices. . CRL’s work focuses on those who may be marginalized or underserved by the existing financial market, or in many cases, people who are the targets of unfair and abusive financial products that leave them worse off. This includes people of color, women, rural residents, and low-income families and communities.

About UNCF

UNCF (United Negro College Fund) is the largest and most effective minority education organization in the country. To serve youth, the community and the nation, UNCF supports the education and development of students through scholarships and other programs, supports and strengthens its 37 member colleges and universities, and advocates for the importance minority education and university preparation. The institutions of the UNCF and other historically black colleges and universities are highly effective, awarding nearly 20% of African-American bachelor’s degrees. UNCF administers over 400 programs, including scholarships, internships and scholarships, mentoring, summer enrichment programs, and faculty training and development programs. Today, UNCF supports more than 60,000 students at more than 1,100 colleges and universities across the country. Its logo features the UNCF leadership torch in education and its widely recognized trademark, ‟A mind is a terrible thing to waste.® Learn more at UNCF.org or for ongoing updates and news, follow UNCF on Twitter at @UNCF.


        


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