Skip to comments.U.S. Pours Millions Into Failing Black Colleges, Breaks New Student Loan Rules
Posted on 05/14/2014 9:16:21 PM PDT by PoloSec
The federal government violates its own student loan rules and wastes hundreds of millions of dollars to subsidize perpetually failing black colleges, including the alma mater of pop star Michael Jacksons criminally-convicted doctor, a Judicial Watch investigation has found.
The institutions are known as Historically Black Colleges and Universities (HBCU) and JWs probe has uncovered documents that show American taxpayers are being forced to fund them even when their accreditation has been stripped, they have dismal graduation rates and rank among the nations worst medical schools. For instance, Meharry Medical College (where the late Jacksons physician, Conrad Murray, got his degree) is renowned for producing an alarming number of inept doctors along with third-world institutions like Manila Central University in the Philippines and the Autonomous University of Guadalajara in Mexico, according to records obtained by JW.
Yet the government continues giving itand other troubled black collegeslarge sums of money in the form of low-interest loans that are usually defaulted. This is done through the Historically Black College and University Capital Financing Program and its proven to be a massive boondoggle. Obtained from a variety of government sourcesincluding the U.S. Treasury and the Department of Educationthe files accessed by JW show that the scandalous investment is not only fleecing taxpayers, its also breaking rules created by the Obama administration under a 2010 measure that replaced student loans by private lenders with direct loans by the U.S. government.
Once its own money was in the game, the government decided that student loan lending rules were too loose and default rates were too high. In October 2011, the Department of Education quietly changed underwriting criteria for the transactions, known as PLUS student loans. Those criteria are still pretty low (prospective borrowers cant have any current accounts more than 90 days delinquent, or any foreclosures, bankruptcies, tax liens, wage garnishments or defaults within the past five years. But the department doesnt look at prospective borrowers incomes or their current debt load, meaning that poor borrowers with little or no credit history can be approved), but still resulted in a 10% increase in the denial rate.
Historically black colleges and universities were most adversely impacted by the new credit standards and HBCU officials as well as African American community leaders lobbied the Education Department to change the standards. Education Secretary Arne Duncan apologized about the unintended effect on black colleges but publicly maintained that our department is required to carry out the law as it was designed to protect parents and taxpayers against unaffordable loans. Duncan did admit that that the process could have been handled better and that internal and external communications were poor, according to a mainstream newspaper.
Behind the scenes his agency quickly circumvented those laws to protect parents and taxpayers. In fact, Duncan sent a letter to the Congressional Black Caucus regarding the impact that the new loan rules were having on HBCUs stating that the Department had used [its] authority to consider extenuating circumstances as a method to provide immediate relief for many students, which allowed previous PLUS loan recipients and applicants whose adverse credit determinations were based on a de minimis amount of debt to obtain a loan through the reconsideration process.
The agency has used the accommodation to provide near-blanket approvals for PLUS loan applications from previous recipients, according to the records obtained by JW. This academic year, about a third of the applicants from historically black colleges denied this year were eligible to appeal. Of those, 38 percent, or just over 8,000 applicants, filed for reconsideration. Virtually all of them98.5 percentwere then approved for a PLUS loan, the records show.
So why does the government continue pouring enormous sums of money into these failing institutions that often cant even keep their accreditation? The only explanation JW could find among the droves of government records is the Obama administrations determination of the importance of HBCUs as a national resource.
It sounds like the Sub-prime loan debacle all over again.
I’m shocked so shocked by this
Must be that White privilege thing I keep hearing about, no?
Isn’t it possible that historically black colleges and universities need to adapt or go out of business?
Their reason for being no longer exists. Blacks are not being kept out of other colleges anymore.
The Negro baseball leagues went out of business within a few years of Jackie Robinson breaking the color line in baseball. Their reason for being no longer existed. The world had changed. Perhaps the same reasoning should apply to these colleges. If they can’t run themselves properly, lose accreditation, etc. then maybe they should no longer exist.
Flame away, I know what I said is controversial, and would be called racist by the liberals. But I would love to know, how do you justify these colleges when blacks are not being discriminated against in attending any other college of their choice.
These facts are racist!
This is rasis.......
Laws are merely guidelines for the unimaginative and small-minded.
Well, what about the faculties of these universities? What’s going to happen to them if we let these universities go under?
It is the blind leading the blind in these so-called “colleges”. What a sick joke.i
HRBC’s are a weird mix. You have some truly excellent schools, like Tuskegee, and you have a lot of schools best known for their “noncompetitive admissions.” (I went to high school with a guy who scored a combined 720 on his SAT (out of 1600, this was a while ago), and had a 1.9 GPA, and was accepted to an HRBC in a neighboring state). From what I’ve read and seen, there doesn’t seem to be a lot of in between, “average” colleges and universities. It seems (again, from what I’ve seen) very feast or famine.
As for what to do about it...I don’t think anyone is served by funding a school that does not or can not meet basic academic standards. Least of all for the students who attend there. Cranking out unprepared graduates at the university level solves no more problems than it does at the high school level, and creates just as many (though HRBC’s are not the only schools guilty of this practice.)
The counter-argument would be that African-Americans, etc. come from disadvantaged backgrounds/bad schools/etc. My counter to the counter is, enroll in a local junior or community college for a year or two. You’ll get the opportunity to catch up on the basics and prep yourself for a four year degree at a school that can offer you something for your future in terms of a career.
You can’t justify it. Blacks will continue to hold on to whatever it is that justifies their “victim” status in their minds. They refuse to let go of the “big pay back” mentality that whites must pay for what they did. Either they assimilate with the rest of us, and become responsible for their own destiny, stand up on their own two feet and do for themselves, or they will continue to lag behind the rest of us, by choice.
Well, really it’s hang onto God and trust Him to teach them how to be strong and furnish the wherewithal. Nobody “stands on their own two feet” in a vacuum. Nobody.
Bill Cosby.... bookmark
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