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HBCU funding combined in new health bill; signed into law (6807 hits)

The plan also includes $255-million a year to help historically black colleges, as outlined in the House bill.

President Obama signed into law some legislation to overhaul the student-loan system, promising annual inflation-adjusted increases in the maximum Pell Grant and billions of dollars in additional aid for higher education. To help the passage of the new healthcare plan, this student loan overhaul was part of a strategy; combining both bills into a single measure.

The student-loan portion of the plan would end the bank-based system of distributing federally subsidized student loans, and instead would have the Education Department give all loan money directly to colleges and their students.

The change was estimated last year to save the government $87-billion over 10 years. Delays since then left lawmakers facing a new estimate of about $67-billion over 10 years, prompting Democrats to cut some of the benefits contained last September in a House-passed version of the bill, including money for community colleges and for additional loans for low-income students.

The final plan would use $36-billion of those savings to increase the maximum value of a Pell Grant, currently scheduled to reach $5,550 in the coming academic year, by the rate of inflation each year for the next 10 years. The Obama administration had asked Congress to approve an annual increase equal to the rate of inflation plus one percentage point.

The plan also includes $255-million a year to help historically black colleges, as outlined in the House bill. It includes $750-million over five years for College Access Challenge grants, which would support state efforts to enroll and graduate underrepresented students, down from $3-billion over 10 years in the earlier House version. And it includes $2-billion over four years to help community colleges, despite suggestions last week that the money would be cut altogether.

The Democratic bill also includes $1.5-billion over 10 years to finance the Obama administration's proposal to limit the mandatory monthly payments on a federally subsidized student loan to 10 percent of discretionary income, down from the current 15 percent, and to forgive the loan entirely after 20 years instead of the current 25 years.

Posted By: Reginald Culpepper
Thursday, March 25th 2010 at 1:10PM
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I salute the President and Congress for this important move and I am grateful that there were dollars set aside to help our HBCU's, however, I am curious as to when 'we' are going to do our part to contribute to the future and success of our schools and not rely so heavily on the government for support? We have to become pro-active and not re-active to this situation. Our future in education is at stake and 'we' have the power and resources to make a change. I guess conversation seems to be the only forward movement towards addressing this issue. (smh)
Monday, March 29th 2010 at 1:48PM
Ray Miller

I agree with that, but I guess I'm looking a little deeper than the corporations. I'm looking directly at the alums of our institutions. Men/Women who have made it into the corporate world and have amassed small fortunes or priceless contacts and fail to give back...not just in dollars, but in time or resources. It seems as though we are almost back to where we started, when our schools were created...we had to 'build' from within our own communities and not rely outside sources. I'll use myself as an example...I'm a product of two HBCU's (Hampton/Wilberforce) and I have over ten years of experience in Marketing/PR/Grassroots Communications. I work with the who's who in the industry and can provide a 'real world' approach to students who are interested in this field...but since I don't have a background in education our schools will not bring me on-board. (Not that I'm looking for money - I'll do it for free) I can provide something that our schools are lacking...I can 'give' back in a way that is more important than money. I can be part of a movement of alums who sharing their collective resources to pave the way for future students to succeed. This is what I mean about being pro-active. This is what I mean about building out our institutions so that we are not relying so heavily on the government to provide what we already have.
Monday, March 29th 2010 at 2:18PM
Ray Miller

I echo Mr. Ray Miller's posting which I am repeating below. WE African Americans have to give back to the HBCUs and not always look to the government and other "outside sources"! Dr. Larry Ridley
"I salute the President and Congress for this important move and I am grateful that there were dollars set aside to help our HBCU's, however, I am curious as to when 'we' are going to do our part to contribute to the future and success of our schools and not rely so heavily on the government for support? We have to become pro-active and not re-active to this situation. Our future in education is at stake and 'we' have the power and resources to make a change. I guess conversation seems to be the only forward movement towards addressing this issue. (smh)
Ray Miller"
Monday, March 29th 2010 at 5:29PM
Dr. Larry Ridley

Ray........I agree with the concept of giving back to the HBCUs that have historically been the professional spring board for a majority of successful African American professionals. The problem, we often de-value the education experience received @ an HBCU and inflate the value of an education that might be gained from attending a non-HBCU. When we begin to see the value of ourselves first, we will support ourselves first. Personally, I make it my business to contribute to the LU legacy annually.
Monday, March 29th 2010 at 5:38PM
Annett Taylor

I am just estatic that money was put in the legislation to support HBCU's. They need the boost. I am a graduate of a major NON_HBCU school, but i contribute to the UNCF. We need to ramp up our financial support of our HBCU schools, especially graduates.

M. Ervin
Tuesday, March 30th 2010 at 4:46PM
MARION ERVIN

I am elated that $$$$ has been allocated directly to the HBCUs. A lot of financial institutions have made it a severe task to get educational loans because of the application process. Making the money more accessible to the HBCUs takes stress out of the "wait period" and both students and parents will feel more at ease conferring with the campus' financial aid personnel. My entire family of six attend and/or have graduated from HBCUs!!!
Monday, April 5th 2010 at 7:13PM
Bonita Sharpe