These 45 HBCUs have $ 1.6 billion in debt eliminated |
The education ministry said canceling loans for capital funding will improve outcomes for institutions and students.
A group of 45 historically black colleges and universities (HBCUs) received a message from the United States Department of Education saying they had a total of $ 1.6 billion in debt paid.
The 13 public and 32 private institutions that participate in the HBCU Capital Funding Program, which provides financial assistance for infrastructure improvements and construction, has been granted a stay thanks to the Coronavirus Response and Relief Supplementary Appropriations Act (CRRSAA). When the initial stimulus package was presented last December, that figure was estimated at $ 1.3 billion.
“Our HBCUs have long been on an uneven playing field, financially, compared to many other post-secondary institutions,” Education Secretary Miguel Cardona said. “This assistance will provide additional support to these mission-critical institutions and help ensure they have more resources to educate and graduate during the unprecedented COVID-19 pandemic.”
The ministry also said the HBCUs will bring in an additional $ 5 billion through the US bailout and the Emergency Relief Fund for Higher Education under the CARES Act.
The combination of aid will allow HBCUs to not only cover the costs of pandemic-related activities and make necessary repairs to aging facilities, but also improve their retention rates and student academic performance.
“This debt relief is nothing less than a transformation for the HBCUs, and with this Congress can now be added the founders of Netflix Reed Hastings and Patty Quillin, MacKenzie Scott, and Bruce and Martha Karsh, who made donating considerable resources to HBCUs to make life better for those who deserve it most and who know the impact of racial inequity in our country, ”said Dr. Michael Lomax, President and CEO of the ‘UNCF.
Institutions receiving aid
The Capital Finance Loan Program has helped provide assistance to HBCUs since 1992, with 113 low-cost loans made to 50 institutions for various infrastructure projects. The Ministry said 87 of those requests were overdue and ranged from $ 10 million to just over $ 150 million.
Some of these included nearly $ 70 million to Morgan State University to help refinance debt, build a new public safety facility, and improve student housing; $ 100 million to Xavier University in Louisiana to help build new dormitories and update its HVAC system, plumbing, and building maintenance; and $ 47 million to the University of the Virgin Islands to help build a research and technology innovation center and medical simulation center.
Colleges and universities receiving relief include the above and others:
- Alabama A&M University, Allen University, Alabama State University, Arkansas Baptist College
- Benedict College, Bennett College, Bethune – Cookman University, Barber-Scotia College
- Central State University, Claflin University, Clark Atlanta University
- Florida A&M University, Florida Memorial University
- Grambling State University
- Hampton University, Harris State University – Stowe, Huston-Tillotson University
- Jarvis Christian College, Johnson C. Smith University
- Lane College, Lawson State Community College, LeMoyne-Owen College, Livingstone College
- Meharry Medical College, Miles College, Morehouse College, Morehouse School of Medicine
- Philander Smith College
- Saint Augustine University, Shaw University, Stillman College, South Carolina State University, Southern University in Baton Rouge, Southern University in Shreveport
- Talladega College, Texas College, Texas Southern University, Tuskegee University
- Virginia Union University, Voorhees College
- Wilberforce University, Wiley College