Trusteeship - September/October 2024 - 5

Fosters Upward Mobility
Investing in HBCUs
IN MAY 2024, THE WHITE HOUSE
COUNCIL OF ECONOMIC ADVISORS
released an issue brief titled " The
Economics of HBCUs, " highlighting the
crucial role Historically Black Colleges and
Universities (HBCUs) play in advancing
the upward mobility of Black students.
Although HBCUs represent less than
3 percent of all U.S. postsecondary institutions,
they enroll 8 percent of Black
undergraduates and confer 13 percent
of all bachelor's degrees earned by Black
students. Research underscores HBCUs'
effectiveness in providing access to higher
education for lower-income students and
significantly promoting upward mobility,
with approximately 30 percent of HBCU
graduates advancing at least two income
quintiles by age 30-nearly twice the rate of
their peers from non-HBCUs.
Historically, HBCUs have faced chronic
underfunding compared to non-HBCU
institutions. Public HBCUs, particularly
land-grant universities, have encountered
substantial disparities in funding. States
have frequently failed to provide the equitable
support required by the Second Morrill
Act of 1890, resulting in ongoing funding
gaps. Current estimates suggest that states
owe HBCUs between $172 million and
$2.1 billion. Additionally, HBCUs generally
have smaller endowments compared to
non-HBCUs, with the disparity growing
over time, particularly among private
institutions. This underfunding has forced
HBCUs to rely heavily on tuition and fees,
posing challenges for students from lower-income
backgrounds.
In response to these issues, the
Biden-Harris Administration has made
significant efforts to support HBCUs. The
AGB.ORG
administration has invested over $16 billion
in these institutions through initiatives like
the American Rescue Plan and expanded
financial aid options such as increased
Pell Grants and the Saving on a Valuable
Education (SAVE) Plan, which aims to ease
student loan repayment. These measures
are especially beneficial for HBCUs, which
serve a higher proportion of students from
lower-income families.
However, on July 18, 2024, the 8th Circuit
Court of Appeals blocked the Biden-Harris
Administration's SAVE plan, undermining
these efforts. U.S. Secretary of Education
Miguel Cardona condemned the ruling stating,
" Today's ruling [...] could have devastating
consequences for millions of student
loan borrowers crushed by unaffordable
monthly payments if it remains in effect. It's
shameful that politically motivated lawsuits
waged by Republican elected officials are
once again standing in the way of lower payments
for millions of borrowers. "
On August 14, 2024, the U.S. Department
of Education took additional steps
to minimize any negative impacts that the
fallout from the court ruling could have on
underserved student populations, especially
amongst HBCUs, by awarding over
$40 million in grants through the Postsecondary
Student Success Grant (PSSG) program
to seven grantees. These grants are
intended to enhance completion rates by
utilizing data and evidence-based methods
to improve retention, transfer, credit accumulation,
and graduation rates.
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Trusteeship - September/October 2024

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