interviews
Student Debt on HBCU Campuses
by Lodriguez Murray
September 29, 2020
This interview with Lodriguez Murray, the Senior Vice President for Government Affairs at UNCF, was conducted and condensed by franknews.
Lodriguez | UNCF is an organization, started in 1944, dedicated to supporting historically Black colleges and universities (HBCUs) — both the students and the schools. We provide financial support to our 37 member schools, we do a lot of work to benefit the whole of HBCUs, and every year, we award upwards of $100 million scholarship to 10,000 students at 1,100 different colleges and universities.
frank | There is a student loan debt crisis. What does the crisis look like for HBCU students in particular?
We know that HBCU students carry more debt, but many people stop the explanation there. When we stop the conversation there, it makes it seem like these schools are more expensive or more onerous for the students that choose to attend.
HBCU students carry more debt because the students are, by and large, the progeny of slaves. The debt disparity is more of a commentary on the economic injustices African-Americans have experienced over the decades, than it is a commentary on the schools.
Students at HBCUs carry more debt because those students come from statistically lower socioeconomic backgrounds than students at other schools. 75% of our student population is Pell Grant eligible. That is 20 percentage points more than at a predominantly white institution (PWI). At some of our schools upwards of 90% of our students are Pell-eligible.
Is the disparity solely within the amount that HBCU students carry, or are there differences in the interest rates and the types of loans they have?
81% of HBCU students receive some type of loan assistance to go to school. And the types of loans do really matter.
A study came out earlier this year that compared HBCU graduates with PWI graduates of the same age, same job, same income, and the same amount of loans. The students attending HBCUs were charged a higher interest rate on their loans.
We call that the HBCU paradox. Our students, because of the type of institution they chose, are "taxed" for their choice.
What explains the difference in interest rates?
To explain that, you have to look at the systematic racism in our country. Black people have a harder time accessing capital. That's a statistical fact. And when Black people access capital, it often happens at the worst rates terms and conditions.
There are financial institutions that have seen us as risky in the past, and you can extrapolate from there to understand what financial institutions do by looking at the name of the college that a student has attended.
Can you talk about the role that Parent PLUS loans play on HBCU campuses?
About half of our students in 2020 are first-generation college students. Families are doing all they can to make college happen for their kids, but due to the economic situation of many of these families have very few options. When other financial aid options are exhausted, folks look to Parent PLUS loans.
We have a sorted history with the Parent PLUS loans at UNCF. We recognize the need for students to access capital to attend school, but we also recognize the need to improve elements of the loan to make it less predatory.
One of the things you should know about that program is that it is an option that many African American students use to access education. You should also know that the Obama administration changed the rules for Parent PLUS loans to require a nearly perfect credit score in order to obtain a Parent PLUS loan. That change completely hampered the HBCU community. It negatively impacted about 400,000 students nationwide. We saw a significant decline in enrollment at HBCUs, which was financially devastating to our community.
We know that African Americans have a harder time accessing capital, and when they access it, it is at the worst rates.
So, why would you punish people who, because of their historic relationship with financial institutions, have had to accept capital at the worst rates? We fought with Congress and the administration to improve their calculations around who could access the Parent PLUS loans.
With that said, certain things should be done to improve Parent PLUS loans, and all other loans, so they no longer cause such harm to students and families.
What changes do you advocate for as an organization?
We believe student and parent loan interest rates should be reduced. We believe the origination fees should be eliminated. We believe loan interest subsidies should remain for low-income students. We believe there should be streamlined loan payment options, and that income-based loan repayment should be automatic. And we believe the federal government should make it easier for students to refinance their loans to have lower interest rates.
We believe in improving and expanding the Public Service Loan Forgiveness Program. There are a lot of HBCU students that are teachers, police, officers, firefighters.
Those graduates should have access to the Public Service Loan Forgiveness Program, but the program has been close to ineffective, no matter which administration is runnig it.
And no one has a good explanation for the program is not working well. It seems like someone's not being held accountable. There are many of students whose loans should be paid down as we speak, but they are not because that program is not working well.
Do you advocate for debt forgiveness?
We believe in debt forgiveness, but we believe it should be progressive. Why would we automatically forgive the loans of a graduate who is making $300,000 and can easily pay their loans? That makes it harder to forgive the loans of a teacher who is two years out of school making $40,000.
And when you say makes it harder — what do you mean?
It will be a bigger number and that bigger number will be harder for Congress and the American people to swallow. But if you prioritize graduates who make less money, then it is a much more attractive policymaking item.
How does the federal funding of HBCUs play into this story?
Congress invests a certain amount of money on an annual basis to help subsidize the schools. They recognize that, despite years of underfunding, HBCUs educate civilians from lower socioeconomic backgrounds and graduate them at higher rates than more well-resourced institutions.
But we know that HBCUs have been under-invested in, period.
That was especially evident when states and the federal government pulled back from investing in higher education after the Great Recession. In recent years, we have seen some reversal of that trend, but not enough to combat the chronic underinvestment in the institutions. And by chronic, I mean buildings need repairs and there are students who should have scholarships but don’t have them.
We need both the federal government and the philanthropic community to invest more in these schools. And we need to recognize that investment in our institutions yields more of a return than investment in those schools that have a billion-dollar endowment.
At the beginning of the pandemic, we were all bracing for a draconian year. After the death of George Floyd, the philanthropic community saw HBCUs and our organization as a way to right social ills. They came to us with donations, and with that money, we will be able to support more students than ever before. We've had the really largest philanthropic boom ever.
The CEO of Netflix and his wife personally gave $121 million, with $40 million going to the UNFC, $40 million going to Morehouse College, and $40 million to Spellman. Mackenzie Scott gave tens of millions of dollars to HBCUs. These kinds of moves have been terribly helpful to break the cyclical pattern.
I wonder if there are ways that you would advocate for the federal government to also fill that gap?
As a matter of fact, every major presidential candidate had policy proposals that benefited HBCUs. And we were able to educate them and convince them certain policies from four years ago were stale. For example, now all candidates, have free college proposals that include private HBCUs, as opposed to only including public institutions.
The major campaigns that remain have proposals regarding HBCU. Both political conventions prominently featured and mentioned HBCUs. That is something that has not always happened. That's not the par for the course for us. We are experiencing a new wave of people and a new wave of interest in a particular type of institution.
At first glance, you might say, do I even need to do a story on this small number of schools? But once you look at the actual impact of the schools it is evident these few schools are doing so much more than anyone would ever expect. These schools are only 3% of all the higher education institutions in the country, but they graduate around 10% of African-American bachelor's recipients. In the states where they are located, they educate a quarter of the Black graduates and they produce nearly 40% of all the Black STEM graduates. When you put those schools together and you have nearly a $15 billion economic impact on the country a year.
These schools really punch above their weight.
interviews
Q&A with Catalina de Onís
by Catalina de Onís
February 8, 2019
Catalina M. de Onís is an Assistant Professor in the Department of Civic Communication and Media at Willamette University. Her research and teaching engage Latina/o/x studies, de/coloniality, race, environmental and energy studies, gender, and fieldwork. She is an affiliated faculty member with the Latin American Studies program and the Sustainability Institute.
How would you define Energy Democracy?
Energy democracy is essential for advancing energy justice, including by foregrounding the experiences, concerns, and needs of community members most impacted by different energy projects. A shift to renewable energy can replicate unjust power relations, so it’s important to be critical of “big green” projects that lack local community involvement and direction. For years, many Puerto Rican energy democracy advocates have been calling for roof-top solar and the need to have companies invest in local energy projects, rather than exporting the money to another place.
Elsewhere, I have defined “energy justice” as:
“Informed by environmental and climate justice, energy justice is concerned with how People of Color and low-income communities are impacted by global climate disruption, energy poverty, energy vulnerability, and decarbonization (i.e. transitioning from high-carbon energy sources, such as petroleum and coal, to low-carbon energies, such as wind and solar). Energy justice also struggles against the exploitation of indigenous lands and communities for high-risk and toxic energy development, from nuclear to fracked gas, and also recognizes the importance of sustainable jobs in the renewable energy sector and achieving energy security and sovereignty in relation to infrastructure, distribution, and access. Thus, this movement and discourse strives for direct community engagement to advance sustainable practices, including considerations of how, where, and for/by whom energy is produced, distributed, consumed, maintained, and disposed of (Sovacool & Dworkin, 2014).”
Is Energy Democracy inherently political?
Yes, energy democracy always involves politics and power struggles over energy sources and infrastructure, how that infrastructure comes to be, who decides, how it is maintained, and what policies advance or impede such projects. The political system in the United States, Puerto Rico, and in other countries throughout the world is entwined with energy industry interests that often have no problem with treating some communities as sacrifice zones to maximize their profits. There are large barriers to full participation in Puerto Rico, as evinced by the Fiscal Control Board’s website and the “public comment” process that requires submitting responses online and in English. As a result, the majority of Puerto Ricans in Puerto Rico are not able to participate in their preferred language. Furthermore, energy conversations among liquefied gas (LNG) industry officials, members of la junta fiscal/the control board, and local politicians are discussing lifting the suffocating 1920 Merchant Marine Act, or the Jones Act, only for the purposes of importing LNG. This exception epitomizes how corporate energy interests and their political allies are willing to waive one aspect of an arbitrary law only to the extent convenient for them, rather than addressing widespread calls from civil society to lift this act entirely to transform Puerto Rico’s dependence on US ships and imports. One of the LNG tankers making the route between Florida and Puerto Rico is “Taino,” named after the Indigenous peoples who faced the brutalities of colonization.
What does the history of energy operations look like in Puerto Rico? What sort of legacies are left?
Puerto Rico’s heavy reliance on imported fuel oil from South America and liquefied gas from Trinidad and Tobago and increasingly from the United States shows how energy sovereignty has been denied. During the height of Operation Bootstrap, in the mid-1900s, Puerto Rico was used as a test site for the petrochemical industry; the energy required was enormous to support this component of US-empire building. Local artist Rafael Trelles illuminates the problem of abandoned industries, job loss, and environmental contamination in his moving 2011 artistic piece: “Monumento al Fracaso” (Monument to Failure). Another artistic intervention against environmental injustice, titled “Contaminado,” emphasizes the problem of coal ash dumping and the impacts on human health in the southern region of Puerto Rico. These artistic efforts have unfolded synergistically with grassroots movements agitating for Puerto Ricans’ self-determination over their own energy futures.
How do you begin to move past them?
First, it’s important to call attention to the toxic legacies that scar Puerto Rico’s landscape and that harm the health of local communities. For example, a 2016 epidemiological study found that various diseases and respiratory problems are disproportionately high in communities that are nearby fossil fuel plants. So, instead of moving past these toxic legacies, it’s important to note that many communities continue to live with this contamination on a daily basis. Given this reality, it’s important to note the urgency of a just transition to grassroots, renewable energy alternatives that both improve human and environmental health conditions and create local jobs to grow struggling local economies.
Can you describe the grassroots led efforts for energy happening in Puerto Rico right now?
Numerous grassroots solar energy projects are unfolding throughout Puerto Rico. The longtime environmental justice group Casa Pueblo has been a large solar advocate and leader. Another effort, which existed pre-Hurricane Maria, is Coqui Solar in southern Puerto Rico, home to the two most polluting power plants in the Big Island, and yet many residents in this area often face power outages and were some of the last to have power restored after the 2017 hurricane season. The project involves already-installed solar panels on the community center and the development of resident-installed solar panels on surrounding homes. Service-learning with Drs. Efrain O’Neill-Carrillo and Marcel Castro and their engineering students has been at the heart of this collaboration. Also with university ties, El Instituto Nacional de Energia y Sostenibilidad Isleña (the National Institute of Island Energy and Sustainability, or INESI) is involved in many projects and has been a champion of energy democracy for years, including hosting “dialogue tables” with various members of civil society.
How have citizens responded to these efforts?
Those who are locally impacted tend to respond with excitement about the possibilities, but it’s important to not suggest that every Puerto Rican supports solar. It’s important to not treat Puerto Ricans as a monolith.
How has this work adapted since Hurricane Maria? Is resilience built into each energy project?
There’s now greater financial and academic support for these grassroots, roof-top solar projects from outside groups. For example, local Puerto Rican scholars and community activists have been supporting visits and collaborations of numerous university groups—from the University of Oregon to MIT. These collaborations can be helpful, if they are committed to a long-term, sustainable relationships and put the interests and needs of local communities first. Otherwise, colonial relational patterns can too easily develop.
What policy is central to this work?
Energy policy must center the realities of impacted communities. Too often in Puerto Rico, there’s the façade of public participation. However, from language to technology barriers, a dramatic transformation must be made before approaches to energy projects in Puerto Rico begin to be about the people instead of maintaining fossil fuel energy interests and their political cronies.
What sort of new policy would benefit your efforts and incentivize more participation?
The efforts of INESI create a vision for energy democracy, based on years of conversations that include diverse energy actors. Ayuda Legal Puerto Rico also is an important legal resource.