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
Becoming Prosumers Of Energy
by Ruth Santiago
February 16, 2019
This interview with Ruth Santiago, a lawyer who works with community and environmental groups in southeastern Puerto Rico, was conducted and condensed by frank news.
How do you think of energy democracy?
Energy democracy stems from the effects of energy coloniality and how certain jurisdictions have been used for extractive and exploitative practices and have become sacrifice zones for operations that create great wealth for other people over time.
How did you get involved in this work?
I got involved because of proximity. We have this saying in one of the groups I work with that says, "The environment unites us and identifies us." Not just the subtropical dry forest, and mangrove forest, and salt flats, and offshore cays, but also things that impact that environment – they also unite us and define us.
I was raised to a certain extent in Salinas. I spent my formative, adolescent years here. I was born in the South Bronx, my parents were part of the return migration to Southeastern Puerto Rico. They were from a municipality that's a little bit further east of Salinas, but very similar in many ways in terms of being part of the sugarcane monoculture, a high concentration of Afro descendent people, and real situations of struggle and survival. They decided to return to Puerto Rico when I was 12. I was raised along this Southeastern coast on and off from that time. One of my memories of growing up here as an adolescent was the Aguirre Power Complex being built in the early 70s. It was something that came to us. We did not come to the nuisances. Nuisance was built where we are.
The government of Puerto Rico tried Operation Bootstrap. Rapid industrialization and a very intense industrialization program that affected Guayama with industry coming in. First, light manufacturing and then the petrochemical industry. Then, pharmaceuticals, which are still very present. These energy plants were meant to serve more than the communities. These big, central station, fossil fuel plants were meant to provide energy to those heavy industrial uses that consumed and required a lot of energy.
What we saw in two places in Southern Puerto Rico, one here in Salinas and the other over in Guayanilla in Southwestern Puerto Rico, was how the power plants were set up very close to the petrochemical industries. We had the Phillips Puerto Rico Core Petro Refinery. Aguirre Power Complex was basically in service to that and other heavy industrial users. People were told they would get jobs. They said, "Oh, we're going to generate upwards of 2,000 jobs." People were a little skeptical and concerned about how that would impact the possibility of safe fishing at least. They were told it would not be impacted. Ultimately, what happened was Phillips did not generate anything close to 2,000 jobs and folded after a few decades, but did leave a terrible legacy of contamination to air, water, and land. People lost a lot of their ability to do the subsistence fishing even.
Aguirre Power Complex came in stages. They had two power plants in one. In 1972, they set up what was known as the Thermoelectric Plant. Again, people were told they’d get jobs from this. Again, the plant does not hire many local residents. It’s estimated there was 20-25% local hires, and the rest came from all over, anywhere but Salinas and Guayama. The same thing with the Combined Cycle units, because as I said, it's two plants in one.
At the dawn of the 20th century Puerto Rico got its first coal-burning power plant and the only coal-burning power plant that was established by AES. They're a Delaware corporation with their headquarters in Arlington, Virginia, but they do business all over the world. In November 2002, they started a brand-new, so called clean-coal power plant. It's been disastrous. Again, people were told, this is going to be beneficial in terms of stimulating the local economy and bringing down the electric rates. None of that happened. What has happened is that people are getting more and more exposed to pollutants and heavy metals and public health is being impacted.
Your work seems two-fold. One is dedicated to producing energy that is actually clean and that will not leave a legacy of toxicity. The other is in trying to invert the power structure of how that energy is produced and sold. Correct?
Absolutely. Absolutely.
Can you talk about your work in both areas and how they come together?
We have done a lot of resistance work, and a lot of work to promote community alternatives on energy and sustainability issues. There's a long history of activism here. I became more active in energy issues around 2003. We started participating in the monitoring of the Aguirre Power Complex and how it impacts public health, air quality, and water. Both the sea water and the potable water. The only source of potable water here is the South Coast Aquifer. That was monitoring.
We started participating in different administrative proceedings with a group called Comite Dialogo Ambiental, the Environmental Dialogue Committee. Then we participated in proceedings against PREPA, the Puerto Rico Electric Power Authority, but also the AES Corporation.
I've done both administrative proceedings and litigation in courts related to different impacts from those plants, and most recently a company called Excelerate Energy out of Texas was proposing to build what they call an offshore gas port and a marine natural gas pipeline, that we just defeated. It would have been running right through the middle of Jobos Bay National Estuarine Research Reserve and impacted corals and seagrass beds and offshore cays and all kinds of things, and the ability of people to do subsistence fishing and ecotourism and otherwise just use and be in the environment.
We've done a huge amount of work with respect to the coal combustion residuals or coal ash waste related to the AES Power Plant. The coal ash waste is a concentration of heavy metals, toxic heavy metals that were being spread all over, and is now being accumulated at the AES Power Plant site in Guayama, Puerto Rico.
That summarizes the energy resistance work that we've done. In terms of going beyond resistance and seeking to build the solutions and the alternatives, we've done a lot of environmental education, both with Comite Dialogo Ambiental Inc. and another group, an umbrella organization called, Eco Development Initiative.
Prior to the hurricane in conjunction with IDEBAJO and a community board called Junta Comunitaria del Poblado Coqui, in Salinas, we helped start what is known as the Coqui Solar project. It's a community solar initiative. It was started with lots of workshops and consultation and collaboration with professors, like Efrain O’Neill from the University of Puerto Rico at Mayagüez, which is the technical campus here.
It was, for years, before the hurricane, quite a struggle to get people to understand, to want to move towards solar energy, especially rooftop solar communities. It was going very slow. We were certainly doing the education work and the policy work, but not getting very far on the ground in terms of actual implementation of the first steps, the pilot project for the solar community. But right after the hurricane when it became clear to, I think, everyone in Puerto Rico and probably anyone familiar with Puerto Rico that the current electric grid does not work for the people of Puerto Rico. People have been much more receptive to the Coqui Solar project and initiatives of solar communities and other alternatives to central station, fossil fuel generation.
Can you tell me how a solar community works?
That's something that's being developed right now. The way people in Coqui Solar envision it is people who have the appropriate rooftops, usually cement, which is not the case for everyone, are able to come together to think about and work on generating energy using PV systems on their rooftops. It's certainly much more than just everyone in the community having PV equipment. This is beyond just a technological solution. It's about the social agreements necessary to make that energy and that technology serve community needs in the most efficient way.
Are you seeing a lot of progress in new ways of approaching energy? From the community, but also from a municipal government level?
That's really hard to answer. Certainly with the mind set and attitudes. There's much more receptiveness to the things that we've been talking about for years about solar communities. That has definitely changed and there's a lot more interest and it's a very dynamic situation with respect to energy. After the hurricane, honestly, people realized we're basically on our own here and the government, local, federal, municipal, comes to help us. We have to figure out these solutions.
We're seeing a lot more on the formal scale. A group called ACONER, the Association of Renewable Energy Consultants and Contractors, say they're doing five to six times the number of installations they were prior to the hurricane.
Things have definitely changed. We don't know exactly how much.
There is what can be called, lip service. A lot of lip service about renewable energy which is dangerous, especially with the government of Puerto Rico. They're saying they're adopting the 100% renewable energy goal for 2050, and I think 50% by 2040, but their actions are promoting lots of natural and fracked gas. It's a tricky situation in that sense because you hear everyone saying we adopt renewable energy, but not only are they putting the money elsewhere, they're also talking about a kind of renewable energy that's not community-based,.
What we're seeing is that the government is being pushed by every energy company you can imagine. It seems everyone has an interest in doing some kind of project here, including at utility scale. That it is not the same as the kind of alternatives we're talking about in terms of solar communities.
Why is this an urgent issue for you right now?
We saw here in Puerto Rico, that it's a matter of life or death. People need to take this into their own hands, energy by and for the people. Become more than just passive consumers but actual producers of energy and control their means of production.
We knew before the hurricanes, and we experienced it afterwards. This huge and deadly hurricane was compounded by this terrible electric infrastructure system. It's not serving the people of Puerto Rico in a real way. Maybe that was the best we could do at some point, but that's no longer the situation here and we an opportunity to do things differently. To do better. Much better.