U.S. Pours Millions into Failing Black Colleges, Breaks New Student Loan Rules

Judicial Watch, May 14, 2014

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 Jackson’s criminally-convicted doctor, a Judicial Watch investigation has found.

The institutions are known as Historically Black Colleges and Universities (HBCU) and JW’s 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 nation’s worst medical schools. {snip}

Yet the government continues giving it–and other troubled black colleges–large 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 it’s proven to be a massive boondoggle. Obtained from a variety of government sources–including the U.S. Treasury and the Department of Education–the files accessed by JW show that the scandalous investment is not only fleecing taxpayers, it’s 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. {snip}

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.” {snip}

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 them–98.5 percent–were 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 can’t even keep their accreditation? The only explanation JW could find among the droves of government records is the Obama administration’s determination of “the importance of HBCUs as a national resource.”

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  • Newsflash: B.R.A. props up black institutions.

    Really insightful.

    • NeanderthalDNA

      At least some White baseball players are getting some free rides at HBCU’s, and probably graduating at the tops of their classes, LOL!!!!

      • Tracy William

        Most Caribbean med school grads are white and asian american citizens affirmative actioned out of State U by lesser candidates.

        • NeanderthalDNA

          I did not know that. Makes sense though. You know, something like medicine certainly requires education and oversight, but…

          The best learners are those who teach themselves and use their teacher as a trusted reference.

      • CLB11267

        I had a grade school science teacher who got his master’s through Howard University. Because of his skin color he got some sort of “minority” scholarship which paid for everything! To be fair, he said the masters program he was in was high quality.

        • NeanderthalDNA

          Howard has a good reputation among HBCU’s and compares solidly to most White state supported universities.

          I considered such once. Practically a free ride at a barely accredited school where I could graduate very highly ranked. Not Howard, by the way.

    • So CAL Snowman

      I know you are being sarcastic because like the rest of us you are sick and tired of the insanity, but look at it this way :

      This article highlights the FACT that Whites must be FORCED to subsidize black failure because blacks are incapable of achieving success. Articles like these prove beyond a shadow of a doubt that Whites have no say in the direction that this nation is taking. For people that are new to this site this is quite a wake up call.

      • TruthBeTold

        Our government will use any means to create the flimsiest patina that blacks are equal to whites.

      • borogirl54

        HBCU’s were on the only option Southern blacks had if they wanted to go to college. All of the major Southern universities were closed to blacks.

        • Pro_Whitey

          But under that paradigm of being the only way out for blacks, I would expect them to overachieve and outdo white schools of a similar size and circumstance. I remember Thomas Sowell citing Dunbar(?) High School in D.C. as an institution of concentrated black achievement prior to desegregation. However, the evidence appears to show that they do worse than white schools of similar size and circumstances. More evidence that there are just some gaps that can’t be closed.

          • Georgia Boy

            Right. If they were just as smart, they would be achieving just as much, and liberals wouldn’t need to do all this blaming the legacy of slavery and concocting elaborate theories of race to explain it six generations after slavery ended. Most learning doesn’t need to be be as expensive as we make it in America. But the SJWs just won’t budge on two false articles of faith, 1. That race is just skin color and otherwise not biologically real, and 2. More education will solve any social problem, no matter what it is.

    • Olorin

      I read it differently, QD.

      Through programs like this, low-performing/low-IQ blacks are kept out of the mainstream of higher education and in separate-but-equal institutions that they themselves choose.

      I’d say that’s a bargain. Think of the billions it saves on EEOC and other lawsuits against colleges and universities that don’t want to admit and then hand hold, coddle and unjustly reward bottom-feeding mouth-breathers but are forced to, because quotas diversity justice Dr. King disproportionate impact Ray Sizzim etc.

  • MekongDelta69

    Only somebody like this black muslim marxist dictator and his regime could think that the HBCUs are a “national resource.”

    • Anon

      Your HMO lists five doctors to choose from. Two of them are educated at an HBCU and you can clearly see that before ever stepping into their office let alone it being a surprise when you are sick.
      I’d call that a resource…..of useful information.

      • borogirl54

        Which is worst, a doctor educated an HBCU or one educated in a medical school in the Caribbean?

        • jambi19

          Most Caribbean med school grads are white and asian american citizens affirmative actioned out of State U by lesser candidates. The HBCU docs are the ones that couldn’t even cut it with the lesser requirements needed for their particular demographic profile to be admitted at state U.

          • borogirl54

            Not totally true. I met one that had a 3.2 GPA and did about average on the MCAT test. No US medical school would accept him because his grades were too low, so he went to a school in the Caribbean. He was white by the way.

          • r j p

            Most Caribbean med schools are “for profit”. They put their risk on people who can graduate and will pay their bills.

          • jambi19

            No medical school would accept him because he is white . Google: “AAMC medical school acceptance by race demographics.” The credentials you cite are very competitive for an african-american to be accepted into medical school and they often are accepted. Finally google “meharry medical school acceptance stats” and “morehouse medical acceptance stats” and tell me where your friend matches up with those stats.

          • DaveMed

            I disagree. People who end up going to the Caribbean tend to have done poorly enough on the MCAT to not really have any excuse. It is true that the URMs can afford to have significantly lower MCAT scores and GPAs, but I don’t think there are enough of them to say that most White students in Caribbean schools were rejected purely because of race.

        • r j p

          HBCU docs. Whites go to the Caribbean when they can’t get into a normal US medical school because they were on the cusp and the nod went to a less qualified negro.

        • DaveMed

          Students in Caribbean schools learn the same material that is taught to stateside schools. The differences are:

          1) They did not do as well in undergrad.

          2) They often pay more, because the schools know these are the more desperate (and thus more squeezable) candidates.

  • Herman

    Is anyone surprised by this?
    Blacks can’t make a success of anything so why should colleges be any different?

    • NeanderthalDNA

      It’s just the blackpit. Never gets full, always hungry, like an extradimensional black hole sucking all excess productivity into it and out of our universe.

      Cosmic parasitism.

  • JSS

    “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 Jackson’s criminally-convicted doctor, a Judicial Watch investigation has found”.

    Old uncle sam violating the law to the detriment of Whites when ever he feels like it. This is why it’s so important for White tax payers to play fair and pay up, so the feds can dump the fruits of your labor into black holes called “historically black colleges” and so savages in swaziland can be circumcised. Can someone remind me why Im supposed to think I have a steak in this country again?

  • D.B. Cooper

    Ignoring this incident too, right republicans? The average white American tool doesn’t even watch the news, so they don’t even get to find out how bad it really is,

  • Anon

    Waste? This is money well spent. You can pretty much guarantee that anyone who goes to one of these institutions is a big part of the problem. Think about this. You are trying to hire people. If you toss out everyone who is black, you will get sued for “racism”. But you can cull these people out long before it gets to that point by simply trashing all resumes that cite a HBCU. Costs millions to fund these horrible places. But saves billions.

    • The fact that lots of these HBCUs have lost accreditation would help further justify a hiring policy like that one: “This isn’t a real degree, because the university is not accredited.”

      • NeanderthalDNA

        They should set up their own accreditation scam to accredit HBCU’s the “black way”.

        Or rather, some sympathetic fool Whites should set it up for them and put some HNIC front blacks out there to appear to run the HBCU sham accrediting board and get credit and bloated salaries.

        That might work.

  • So CAL Snowman

    “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 . . . 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.”

    Whenever this “nation” tries to improve itself and protect itself from fraud and corruption it ALWAYS has a disparate impact on the blacks. We can’t have high standards in this country because high standards have a disparate impact on the blacks. This is just another telling example of how the White man has no say in how this “nation” is run. We can’t be a successful first world country because that has a disparate impact on the blacks. Whites must continue to subsidize black failure because the blacks cannot achieve success.

  • dcc2379

    If Harvard decided to have all of its students with an average IQ of 85, they’d have the equivalence of the Detroit or Birmingham gifted program. Importing Zulu to a university would help with beer sales and correction jobs, but there would be little else.

    • NeanderthalDNA

      They’d get lots of diversity money and hire diversity gurus to do blacks’ work for them and advocate for “black” grading scales and…

      Oh hey, kind of how it already works!

    • MikeofAges

      Actual Zulu would at least work at it. And if they pulled C’s, they wouldn’t crybaby about it. If they flunked out, they wouldn’t crybaby about it. They’d blame their lack of effort or lack of gifts and go to work.

  • Ike Eichenberg

    Well at least it’s better than having the National Guard forcing white colleges to admit the unqualified blacks.

  • I tire of supporting a failed system.

    • Look on the bright side: the fact that the federal government feels it must borrow money from China in order to support the unaccredited diploma mills it calls “an important national resource” means that we are surely living in the twilight years of this miserable excuse of a nation.

    • TruthBeTold

      There’s one good side.

      If they have their own place the fewer there will be in white schools.

      That’s why when blacks in your city demand neighborhood improvements, you should consider it.

      We had a white mayor who acted on this. Blacks said, ‘we need better housing’. He said, ‘sure’. He gave them their new housing and they stayed were they were instead of migrating to greener, or is that whiter, pastures.

  • Parasites. I was talking to a Mexican woman the other day, who had over $100,000 in student loan debt wiped off the books. According to the government story this is NOT POSSIBLE. Yet, she tells me it happens all the time with the local Mexicans. BTW, she has no job and is unemployable in spite of her many degrees from local institutions of higher learning.
    Imagine how much more preference blacks must get. It boggles the mind to think of how my standard of living might be so much higher if I were not supporting these parasites.

    • jambi19

      It’s never wiped off. The feds will drain her social security. You can also forfeit your student loans, but the feds tax you the balance adding it to your overall income tax bracket.

      • I hope you’re right because her story was outrageous. What she told me is that if she ever gets another student loan in the future it would reactivate the full amount of her old loans. But she believes they’ve been written off.

        • She’s a *Mexican* which should immediately call into question her knowledge of finance and law, as well as her judgement.

      • convairXF92

        A friend of mine got his pay garnished by the IRS for not paying his student loans. This was a grad-student nerd at a top-tier school that allowed grad students to take out huge amounts for personal use. He used the greater part of the money for entertaining geniuses whom he thought would be useful to him in his future exploits. His student loans became due 9 months after he ran off on his 5th (!) thesis advisor to join a biomed startup. Said startup kicked him out in about a year, and he bummed around the country doing software gigs, with the IRS trying to track him down. He finally got hired to be chief engineer to design and manage what is today one of the top 5 online securities-trading systems. That enabled him to pay back his loans (or rather, the money was taken from him by IRS say-so). Today, he is a hotshot securities trader on Wall Street.

        I should mention that this guy is neither black nor Mexican nor Dominican nor similar. There is a HUGE difference between this odd situation and the Mexican woman’s. There are those who can play the system with positive outcomes for everybody at the end; there are those who think they can, but can’t. There are orders of magnitude more of the latter than the former.

  • IstvanIN

    There are no perpetually failing Historically Black Colleges and Universities, only perpetually failing blacks.

  • tetrapod

    Apparently the motto of the HBCU’s has become:

    The Mind is a Terrible Thing

    • APaige

      Too bad its not: “Money is a terrible thing to waste.” But everyone knows if we just spent MORE money on HBCUs they would become institutions of higher learning that rival the best universities in the world. Its so easy to write what a liberal would…just disregard reason, evidence and write the most extremely asinine statement that even the editors of the Onion would consider too fanciful.

    • A Waste is a Terrible Thing to Mind also has a nice ring to it.

  • borogirl54

    I have talked to many students and graduates from HBCU’s. They all tell me that the financial aid department was one of the worst departments at the school. Paperwork would get lost and as a result, students would not get their financial aid and would have to drop out of school.

    • trouble maker

      Why is that so believable !

    • Are you certain they don’t merely drop out because they are too dumb and unmotivated even for HBCUs?

      • Ike Eichenberg

        No doubt a factor, but, knowing that HBCU’s hire almost exclusively black staff and that black run organizations are almost without exception a disaster, I would argue that any department run by Africans is one of the “worst run departments.”

        You are both correct.

  • dukem1

    Aren’t these HBCU’s monuments to Jim Crow?

    It seems to me that our federal govt would welcome their demise as as an accomplishment vis-a-vis the elimination of institutionalized racism in our nation.
    But that’s just me.

  • IKUredux

    We Whites are the new Ni77ers. HELLO! We Whites slave to pay the taxes for this corrupt government that hates us. We Whites are the new Ni77ers who are not allowed free association. We Whites are the new Ni77ers who are not allowed free speech. We Whites have become the new ni77ers. You think things are gonna get better when we new White ni77ers are the minority in this country?

  • Our successor governments would simply repudiate foreign debt. Beijing would have to try to collect from whatever remains of Washington, and not from us.

    The first rule of debt is that once you owe a creditor enough money, they have the problem: you don’t.

    • Ike Eichenberg

      If you owe the bank $100 that’s your problem. If you owe the bank $100 million, that’s the bank’s problem. – Jean Paul Getty

  • MBlanc46

    Everything connected with “civil rights” has “proven to be a massive boondoggle.”

    • Perhaps the destruction of our wealth has been as deliberate as the mutilation of our traditional rights, which would take it completely out of the “boondoggle” category.

      • Grantland

        Now you’re getting it, Scott – keep going!

  • TruthBeTold

    Exactly. If they want to self-segregate, we should support their right to do so.

  • Whirlwinder

    If you look at the stats, only 4 black colleges graduate more than 50% of students in attendance for 6 years. At the bottom of the list is PrairieView A&M which has an 11% graduation rate. Why do we put taxpayer money into these losers?

    • bubo

      Why do we put taxpayer money into these losers?

      The short answer is that as a society we refuse to be honest with ourselves. We would rather believe in fantasy than reality. The USA is a silly place.

      • Sick of it

        It’s the whole western world today.

  • bubo

    There was a very insightful article written by a black professional who for a short time taught at a HBCU . Needless to say he was not impressed by either the students or the administration. I’m pretty sure I read it here on Amren a few years ago.

    • WR_the_realist

      Thomas Sowell also taught at an HBCU early in his career. He quit when pressure was put on him to raise the grades of students who didn’t deserve higher grades.

  • jane johnson

    Of course Duncan had to placate the CBC. Most attended HBCUs, and their so-called foundation can’t raise enough cash to keep these money-pits operating.

  • Magician

    Many non-black colleges around the country are determined to bring as many black male students as possible just to appear more “liberal” and prove “look look we have a lot of black male students hence we are not racists”. They offer ridiculous benefits to black male students such as giving them acceptance even if they are laughably unqualified, and insane, almost unfair tuition benfits.

    • Herman

      To Magician
      Are you sure?
      I thought there were far more black women than black men in college.
      And colleges would probably prefer black women over black men. They don’t cause as much trouble.

      • Magician

        Yes, there are far more black women than black men in college even after the administration office makes it unfairly easy for black men to receive admission. There are also more female than male white students in colleges around the country as well.

        Colleges around the country love black men over black women.

  • Ed

    Well I actually attended a HBCU ( yes I’m Black) one that is actually on the low end of the list. Unfortunately after transferring from a mostly white Catholic school to a public school that was about half Black in the 7th grade I fell off the college track by the 12th grade.

    I had no interest attending college and flirted with enlisting. I scored 88 on the military test which came as a shock to my recruiter. He was Black and he said the Black boys from my school score in the 20s & 30s. At any rate I didn’t enroll at a 4 year school but worked and went to comm. college mainly to placate my mom.

    I enrolled at my HBCU 2 years after high school. For me it was good. It was nice seeing black kids trying to do their best academically without any stigma attached to it. At junior high/ high school that wasn’t the case. Looking back the rigor wasn’t there but I got what I needed and graduated. A few years later I got into a 2nd tier business school and make good money today.

    HBCUs can serve a positive role if used correctly but some consolidation/closures need to take place.

    • Ngati Pakeha

      Just as a matter of interest did you consider going to a non HBCU at all?

      • Ed

        I kind of fell into 4 year school. I had lost my job in the spring and the school I attended had rolling admissions.

        My experience was good but looking back I probably should have applied myself more. I scored an 1150 on the SAT without any prep in high school. That could have gotten me into a decent state school maybe even flagship with race boost.

      • I suspect an Ngati Paheka might be a Navajo, but I am not certain.

        • Ngati Pakeha

          ??? Sorry you’ve lost me there Mike.

    • Grantland

      Octaroon eh? Quadroon?

  • John K

    Dollars can’t fix stupidity or low IQ.

  • MikeofAges

    Were you tenured? What did you do after you left college teaching? I hoped for but never achieved a career in college teaching. Although most people would look at my history and say, inconsistent undergraduate grades, I was very strong in several subjects and could have gotten a Master’s degree and then gone on, maybe. The big issue for me was subject. I had a lot of conflict over that issue and never settled. Or wanted further education in subjects I did not want to teach.

    One thing I do say is it is possible for an individual who is strong in a subject to educate themselves to a Master’s level. Ph.D. level is a different issue. Few have ever done that, I would say. Not in the contemporary world anyway. What is your take on this idea?

  • MikeofAges

    Howard University is the outlier. Last I heard, which was long time ago, the top quarter at Howard were comparable to the Ivys in SATs, the bottom quarter were like any HBCU. You’ll never see a bigger spread anywhere.