Wednesday, September 11, 2013
In a piece published in the Chronicle of Higher Education yesterday, NAACP President Ben Jealous believes that the closure of Saint Paul’s College, a historically black college in Lawrenceville, Virginia, may foreshadow financial difficulties for HBCUs in the future. Saint Paul, which was founded in 1888 by Jealous’s grandfather’s uncle, closed this summer after 125 years. Jealous notes that wealthier HBCUs like Morehouse, Hampton, and Howard are facing serious budget shortfalls. He says that federal education loan policy is contributing to HBCUs’ recent financial concerns, particularly the ED’s 2011 decision to tighten the standards for its Parent PLUS federal loan program. He says the stricter standards have had "a devastating effect”:
In the 2012-13 school year alone, the volume of Parent PLUS loans to HBCU families dropped by 36 percent, according to an analysis by The Washington Post. Parents of 28,000 HBCU students were initially denied loans under the stricter standards, causing HBCU’s as a whole to lose $150-million in expected revenue. This slow bleed will continue as long as the tighter standards are in place. ... Meanwhile, it is encouraging to see that the department is allowing families with small-scale debt—black, white, or otherwise—to become eligible for PLUS loans through an appeals process.
Saint Paul had been struggling for several years before its closure. The college was placed on a two-year probation by the Southern Association of Colleges and Schools (SACS) in 2010 because the school had too many faculty without terminal degrees and was deemed financially unstable. Despite the probationary period, the college could not right itself, and lost its SACS accreditation in June 2012. Student enrollment dropped below 100 students on the 85-acre campus. Saint Paul, founded in 1888 by Jealous’s grandfather’s uncle, largely served first-generation, low and middle income students. In the last seven years, two of the four institutions that have lost SACS accreditation have been historically black colleges. (The other is Paul Quinn College in Dallas.) Read Lessons From an HBCU’s Demise at the Chronicle of Higher Education here.