HBCUs Awarded Reimbursements through Capital Financing Program’s New Deferment Authority
WASHINGTON, DC–Today, the Department of Education awarded the seven historically black colleges and universities (HBCUs) identified below with reimbursements from the HBCU Capital Financing program.
- Bennett College ($1,185,573.30)
- Florida Memorial University ($1,915,296.72)
- Huston-Tillotson University ($856,783.10)
- Saint Augustine’s University ($1,169,693.52)
- Shaw University ($1,803,565.68)
- Vorhees College ($735,980.88)
- Wiley College ($291,109.52)
The Consolidated Appropriations Act of 2018 (Pub. L. 115-141) and the Department of Defense and Labor, Health and Human Services, and Education Appropriations Act of 2019 (Pub. L. 115-245) provided a deferment of principal and interest payments in the HBCU Capital Financing program for private HBCUs that demonstrated significant financial constraints. This deferment is the first of its kind and shows the Congress’ and Administration’s commitment to assist HBCUs in a time of need with an eye towards the students that they serve.
In total, 13 HBCUs were awarded a deferment: Benedict College, Bennett College, Florida Memorial University, Huston-Tillotson University, Philander Smith University, Saint Augustine’s University, Shaw University, Stillman College, Virginia Union University, Voorhees College, Wilberforce University, Wiley College and Arkansas Baptist College.
“2018 has been a good year for HBCUs,” said UNCF president and CEO Dr. Michael L. Lomax. “Not only did our institutions receive a significant increase in funding for vital programs such as the Strengthening HBCU program or ‘Title III’, but our institutions also received much needed relief in the HBCU Capital Financing program. We went to our congressional leaders on both sides of the aisle with a problem – and they answered. It is our hope to continue this momentum moving into the 116th Congress. I have to give credit to Rep. Alma Adams and Rep. Ted Budd, both of North Carolina. They began this process and were able to significantly grow the bipartisan congressional support. Then, the Secretary of Education and her staff implemented this new authority in the best possible way.”
“Again, we find that bipartisanship can be found on Capitol Hill when HBCUs take a positive, proactive agenda to our congressional partners,” remarked UNCF Vice President for Public Policy and Government Affairs Lodriguez Murray. “UNCF helped drive this process. The institutions listed above qualified for deferment largely because of circumstances outside of their control. While our member-institutions were busy educating the next generation of our workforce, they were victims of both the 2008 Great Recession as well as the changes in the Parent Plus Loan Program; and the results of those two happenings were disastrous. HBCUs are now rebounding, but this deferment—which Congress passed initially in only 52 days—will allow the institutions above the opportunity to breathe, reset and emerge as stronger institutions for the purpose of the educating their students.” Murray concluded, “Now, HBCUs have more goals to accomplish. We are optimistic that the 116th Congress and Administration will both remain close partners as we begin the new year.”
Congress passed the Fiscal Year (FY) 2018 appropriations law six months into FY2018 and the deferment from the HBCU Capital Finance Program is for a period of three to six years, per institution. While thirteen HBCUs received a deferment of their loans, not all will receive a reimbursement. The institutions receiving the reimbursement are institutions approved for FY2018 and made principal and interest payments from October 1, 2017 through June 30, 2018.
UNCF (United Negro College Fund) is the nation’s largest and most effective minority education organization. To serve youth, the community and the nation, UNCF supports students’ education and development through scholarships and other programs, strengthens its 37 member colleges and universities, and advocates for the importance of minority education and college readiness. UNCF institutions and other historically black colleges and universities are highly effective, awarding nearly 20 percent of African American baccalaureate degrees. UNCF awards more than $100 million in scholarships annually and administers more than 400 programs, including scholarship, internship and fellowship, mentoring, summer enrichment, and curriculum and faculty development programs. Its logo features the UNCF torch of leadership in education and its widely recognized motto, “A mind is a terrible thing to waste, but a wonderful thing to invest in.”® Today, UNCF supports more than 60,000 students at more than 1,100 colleges and universities. Learn more at UNCF.org or for continuous news and updates, follow UNCF on Twitter @UNCF.