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Matthew Lynch published in HBCU's, Higher Education, Matthew Lynch

Which Election Issues Really Matter to Minority College Students?

There’s a lot of rhetoric in election years centering on young voters. What do young people want from politicians, and how can those politicians get those young people registered and to the polls? While voters who are older than college and young-adult age certainly outnumber this group, understanding what college students want from the people they elect matters a lot – both short term and long term.

So what do the college students, particularly minorities, want during the election of 2016?

Affordability.

If we’ve learned anything since Mitt Romney’s race for the Presidency in 2012 it’s this: Telling college students to have their parents “write a check” for their education just isn’t going to fly. Asking college students to take on heavy loads of debt is also a no-go. The students entering college today have the advantage of their not-so-much-older graduated peers who are more vocal than any other group in the past about why college attendance needs to be more affordable.

It makes sense, really. No one feels the squeeze of what college actually costs than the students who are actually living it and the young adults attempting to pay back high amounts of college debt on low salaries. Today’s college students saw their parents struggle through the latest recession. Some may have even lost homes. They are well aware of what the load of college debt actually means, and why it is imperative that affordable options be available to students from all life backgrounds.

President Obama’s proposal to have two free years of community college available for students who qualify academically has been met enthusiastically by young people all over the country, and their parents. Pay it Forward programs, like the one in place at Oregon state colleges, are being welcomed with open arms. The idea that hard work, not economic background, can help reduce the overall cost of obtaining a degree resonates with a lot of young people.

Today’s college students want a candidate who recognizes the significant financial sacrifice of earning a degree but who also believes it should cost less, period. This is an advantage particularly to Bernie Sanders, should he land the Democratic nomination, and even Donald Trump could be viewed favorable by young people for his public denouncement of federal loan programs that profit off of college students and parents. Hillary Clinton has also spoke out about not “saddling” students with decades of debt simply to earn an education.

Social issues.

When President Obama too office in 2008, the idea of legalizing same-sex marriage across the nation was a far-fetched one. It was an issue that had passionate discourse on both sides, but not one that appeared it would really move forward in the course of the President’s two terms. Thanks to very vocal supporters, and also to the rise of social media informing more people of the issue and hand and humanizing it, we all know that progress was made faster than anticipated.

The same is true of other issues now seeing greater awareness, in part again because of social media. Some of those include paid maternity/paternity leave, abortion and reproductive regulations, and the gender- and race-gap when it comes to wages. These are important to college students and boils down to their elected officials doing what is right by them, and their peers. The social issues that matter most to each individual college student will determine the particular candidate of choice, and a range of conservative and liberal stances are represented among front runners Hillary Clinton, Bernie Sanders, Donald Trump, Marco Rubio and Ted Cruz.

Environment.

College students today are hyper-aware of the issues surrounding sustainability on the planet. From oil fracking to water conservation to global warming – these young voters care what happens to the place they call home. Denial of such issues as problems is futile. Donald Trump’s recent comments that he wants to revive the coal industry are sure to turn off most young voters while Hillary Clinton has vowed to push comprehensive energy changes that support renewable sources and clean energy technology.

 

It’s almost surreal to think that by this time next year, we will have a new Commander in Chief. While college voters may not make the biggest impact at the polls, their voice will make a difference in who is chosen – and how that person is held accountable while maintaining the highest office in the land.

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Matthew Lynch published in HBCU's, Higher Education

Study: College students feel unprepared for job market

In a startling new survey conducted by the Higher Education Authority, a significant amount of international college students “feel they are not learning job skills” — which clearly is the point of spending tens of thousands on earning a college degree.

Nearly 28,000 students from Ireland participated in the survey where they were asked about questions geared towards their college experience as well as future career outlook.

While many of students who participated DO feel unprepared, the vast majority state that they “felt they were gaining knowledge and skills that boosted their chances of getting a job.”

The study also reveals how students who major in certain disciplines feel about their job prospects post graduation.

“In general, scores for “work integrated learning” were lowest among students studying courses in the arts and humanities, which tend to be broader and may not include work placements.”

The study also found that students majoring in business administration and law, services, and “comm. techs” indexed higher scores when it came to career readiness. Each area seemingly has higher job placement than arts and humanities because the positions in those fields are far more static.

The Irish Times reports that “he survey was developed in response to a key aim of the national strategy for higher education to 2030” which may be to incorporate more of what students want into learning curriculum.

Compared to students in the United States, the findings are the same. Back in 2010, a study prepared by the York College in Pennsylvania found the same evidence: students in America “seem to be ill prepared for the demands of the workplace.”

Same goes for managers hiring students fresh out of college in America. According to Forbes.com, Harris Interactive found that “fewer than two in five managers believed college graduates were well-equipped for a job in their field of study.”

The study went on to find that many managers feel that new college graduates lack clear writing skills, can’t conduct a meeting, and cannot manage a project.

If anything this collection of studies abroad and domestically show that a college degree may be tangible and lead to a job post graduation, but skills learned in college may not help former students keep them.

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Matthew Lynch published in Equity, HBCU's, Higher Education, Matthew Lynch

Why aren’t Most Minority High School Grads College-Ready?

It seems that graduating from high school is no longer the end goal of P-12 learning – earning a college degree has replaced it. By 2018, 60 percent of jobs will require a college degree. In a recent post, I wrote about the nationwide average high school graduation rate being 80 percent – which is admirable but also means that at least 1 in 5 kids won’t make it to college classes. When you factor in the high school graduates that bypass college completely, it seems that at some point America’s workforce will simply not be able to meet the demands of its employers.

When it comes to minorities who graduate high school and are ready for the rigor of college coursework, numbers are bleak. A new report from the College of Education at the University of Arizona found that less than 1 in 10 minority high school graduates in the state are adequately prepared for college. Non-minority students are not much better off though, with only 2 in 10 prepared for college after graduating from high school. A rise over the past 15 years in minority students in elementary and high school in state, as well as economic disparities between students of color and their white peers, are cited in the study as drivers behind the high school graduation-college readiness gap.

Arizona should not be singled out though. Of the 1.7 million high school graduates that opted for the ACT college entrance exam in 2012, only 60 percent were deemed “college-ready.”

Arizona is a standout example, though, of the way the changing landscape of the country is impacting P-12 education and the college demands that follow it. Childhood classrooms today look vastly different from the ones even 10 years ago and children, minority or white, come with different need sets. Teachers can learn only so much from textbooks and their own school experiences – they must have the resources to reach students from different backgrounds, and understand how those students will change over the course of the teachers’ careers.

In the case of Arizona, some mandatory Spanish-language education would be a start but the language barrier is only the tip of the iceberg. If students in Arizona classrooms are first-generation Americans, their own parents are not familiar on a firsthand basis with classrooms in America and certainly not the university system.

Even students who are academically ready for college may not be emotionally ready for the pressure and responsibilities of self-learning – both things that need to be taught before high school ends.

I also think that the assimilation mentally of generations-past needs to be forsaken. It seems to me that all of the energy that goes into trying to “change” minority students who enter the classroom would be better spent adjusting teaching methods to ones of inclusion. The global economy demands that students understand that the world is made up of diverse people with a variety of backgrounds, and languages. In order to succeed as a nation, that recognition must take place and those lessons must be included in the process of educating.

The “passing the baton” mentality also needs to be abandoned if students are truly expected to succeed academically after high school ends. If America truly wants to live up to its “Land of Opportunity” moniker, this generation of P-12 students needs to be viewed as a responsibility by their educators long after the high school graduation benchmark has been met. Instead of letting students make their own mistakes in early adulthood, at least when it comes to the future of their careers and livelihoods, educators should stay involved and help bridge the high school-college gap.

What programs do you think might help make this happen?

Read all of our posts about HBCUs by clicking here. 

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Matthew Lynch published in HBCU's, Higher Education

Are new student amenities boosting the cost of tuition?

As described by insidehighered.com, new student amenities such as lazy rivers are “bad for optics” when talking about the cost of college. The article explores the notion of luxury amenities on college campuses driving up the cost of tuition.

Because New Jersey Governor Chris Christie and Massachusetts Senator Elizabeth Warren have criticized these high-priced student enhancements, they may be unfairly correlating these spending projects with the cost of tuition.

With student loan debt spiraling out of control and tuition continuing to spike, both lawmakers believe that these types of amenities aren’t needed.

But according to insidehighered.com’s article, tuition isn’t rising because of a lazy river. The price of higher education is going up due to cuts in state budgets.

“These lazy rivers are not the reason why student debt is soaring seemingly out of control. The big problem that higher education faces today, at the public side, is cuts in state spending,” said Professor of Economics at the College of William and Mary, David Feldman to insidehighered.com.

This certainly is an interesting antecedent when looking at college costs. As mentioned earlier, adding lazy rivers and climbing walls is “bad for optics” when discussing how colleges charge students for their education. In this case, LSU is in the process of upgrading its student recreational facilities by installing a lazy river and other amenities.

While tuition isn’t impacted by the cost of the upgrade, which is $85 million, student fees were effected. That decision to increase student fees was granted by the school’s student government, not leadership brass.

If anything, this just seems like a popular talking point for politicians gearing up for the 2016 election season. The cost of college and student loan debt will be hot butting topics for voters nationwide, and to hinge “lazy river” and “rock climbing wall” onto the rising cost of college will simply add fodder to the conversation.

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Matthew Lynch published in HBCU's, Higher Education

Allstate raises funds for HBCU scholarships

**The Edvocate is pleased to publish guest posts as way to fuel important conversations surrounding P-20 education in America. The opinions contained within guest posts are those of the authors and do not necessarily reflect the official opinion of The Edvocate or Dr. Matthew Lynch.**

A guest post by Anwar Dunbar

The first article I wrote for The Edvocate talked about Financial Literacy, and how it can lead to greater giving by alumni of Historically Black Colleges and Universities (HBCUs) back to their alma maters.  This article will highlight an effort by Allstate and the Tom Joyner Foundation, to rally HBCU alumni, families, friends and supporters to help raise money for students currently enrolled at HBCUs.  In addition to diminished funding from the Federal Government, and increased competition for students from Predominantly White Institutions (PWIs), one of the other major challenges HBCUs face is anemic alumni giving.  In the face of these challenges, fundraising for HBCUs is paramount.

For the fifth straight year, Allstate and the Tom Joyner Foundation are partnering for the Quotes for Education program (QFE).  The initiative is designed to raise funding for students enrolled in HBCUs, to ensure that they’re able to stay in school and finish their degrees.  Some key points about the program include:

  • Between August 1 and Nov. 30, Allstate will donate $10, up to $200,000, to the Tom Joyner Foundation general scholarship funds for every person who receives a quote and mentions Quotes for Education to participating agents.
  • For the fourth year, participants can also vote for an HBCU of their choice to receive an additional $50,000 for scholarships.
  • The school with the most votes will receive the $50,000. In 2013 and 2014, Grambling State University won the fan voting competition.  In 2012, Lincoln University won the competition.

The QFE program encourages: students, alumni and supporters of HBCUs around the country to assist the future generation and help raise scholarship funds.  According to a 2013 report by the Council for Aid to Education, only 10 percent of HBCU alumni actively give back to their alma maters, an embarrassingly low number.  Furthermore, the resulting budget cuts and diminishing financial aid options have led to a decline in student enrollment.

For the third straight year, Allstate granted me an interview with their Senior Vice-President and Florida A&M University alumnus Cheryl Harris regarding the program and the current challenges facing HBCUs.  The following are some excerpts from the interview which took place on September 17.

“I can tell you right now that Grambling State University is currently number one on the leader board with Tuskegee University in second place, and Jackson State University in third place.  Grambling State University has won the competition twice in three years,” said Cheryl Harris regarding Allstate’s 2015 Quotes for Education program.  “Again the goal is to get as many people possible engaged to quote and vote, so we can donate up to a total of $250,000 in support of HBCU scholarships”.

“What’s happening with the state funded HBCUs, is that the states have moved more towards a performance based funding model.  Schools can therefore be impacted by their delivery against those metrics,” Mrs. Harris said regarding current issues HBCU’s are facing.  “For that reason a program like ours becomes really important in closing the funding gap for deserving students at HBCUs by allowing them to stay in school.  Our collaboration with the Tom Joyner foundation allows to us donate $10 for every quote received, and subsequently donate up to $200,000.  In addition to that we’re also encouraging supporters to vote for their favorite HBCU so their school can win an additional $50,000 in scholarships funding as a part of the ‘HBC I owe U’ initiative”.

“Seeing what Grambling State University has done in our voting competition makes me smile.  It’s not just the students on campus.  Grambling State University also actively engages faculty and the community and in doing so build awareness and good will for the HBCUs,” Mrs. Harris continued.

At our Johnson C. Smith University Washington DC Alumni Club meetings, there have been numerous stories in the last two years of students being unable to register for classes and even being sent home in some instances.  While HBCUs face challenges on the institutional level, students in some cases face challenges on the personal level in the form of their family’s difficulties financing their educations.  One of their major challenges is thus running out of money and not being able to finish their degrees.  These situations once again underscore the importance of QFE and other similar efforts.

“We need the readers to participate by going to: www.allstate.com/hbcu,” Mrs. Harris said in closing.  “They can go there to find a participating agent.  They can get a quote and while there they’re there, they can take the opportunity to vote”.

Read all of our posts about HBCUs by clicking here.

___

Anwar Y. Dunbar is a Regulatory Scientist in the Federal Government where he registers and regulates Pesticides.  He earned his Ph.D. in Pharmacology from the University of Michigan and his Bachelor’s Degree in General Biology from Johnson C. Smith University.  In addition to publishing numerous research articles in competitive scientific journals,  he has also published over one hundred articles for the Examiner (www.examiner.com) on numerous education and literacy related topics in the areas of; Current Events and Culture, Higher Education, Financial Literacy, and STEM (Science, Technology, Engineering and Mathematics).  He actively mentors youth and works to spread awareness of STEM careers to minority students.  He also tutors in the subjects of Biology, Chemistry and Physics.  He is a native of Buffalo, NY.  He can be contacted via email at [email protected], and can be followed on Twitter @anwaryusef.

 

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Matthew Lynch published in HBCU's, Higher Education, Matthew Lynch

Diverse Conversations: The Failure of Higher Education

Growing up, many Americans are told that education is the doorway to happiness and a way to break the cycle of poverty and anti-intellectualism that pervades the country. However, when many college graduates complete their degrees and hit the job trail, their faith in conventional wisdom is often tested. Many of them have a hard time gaining professional employment, and subsequently end up unemployed or underemployed.

Because of this, many people are beginning to question the viability of obtaining a higher education. I sat down with Peter Stokes, Vice President for Global Strategy and Business Development at Northeastern University, to find out if they have a legitimate argument.

Q: More than half of college graduates are unemployed or underemployed. On top of that, many are bogged down with massive amounts of student loan debt. Because of this, many people are beginning to question the viability of obtaining a higher education. In this day and age, is college worth it?

A: According the Bureau of Labor Statistics (BLS), in April of 2013 the unemployment rate for individuals aged 25 and older with a bachelor’s degree was 3.9 percent, compared to an overall unemployment rate of 7.5 percent. That ought to be viewed as good news for those pursuing a college degree. The situation for recent college graduates, of course, is not as rosy. As Anthony Carnevale of the Georgetown Public Policy Institute’s Center on Education and Workforce points out in his May 2013 report “Hard Times,” the unemployment rate for recent college grads is 7.9 percent – not good, but not dramatically worse than the case for the population overall. However, Carnevale also notes that unemployment rates for recent college grads vary significantly by major, with nursing majors facing a 4.8 percent unemployment rate at the low end, and with information systems majors facing a 14.7 percent unemployment rate at the high end. Likewise, naturally, earnings vary considerably by major, on average, and this affects graduates’ ability to manage their debts. Whether college is worth it depends on a number of factors, including the debt required to finance college and the career earnings one can reasonably expect subsequent to attaining a degree, among other matters.

Q: Many also cite the high cost of attending American colleges as a hindrance to attendance. Is this concern justified, or just an excuse?

A: College pricing varies considerably, and potential debt levels will vary as well. Without question there are cases where individuals have paid significant sums, and incurred significant debt, to acquire a degree that lacks sufficient market currency to make managing that debt easy. And while college prices are rising faster than inflation, there’s little evidence yet to suggest that not going to college – any college – is a better economic decision than going to college for most prospective students.

Q: Are there just some students who are not college material, and for their own sakes should be counseled to pursue other avenues, like vocational schools?

A: The college participation rate has never been 100 percent. The national rate in 2012, according to BLS, was just over 66 percent, though there can be considerable variation by state, ranging from about 46 percent to 77 percent according to data from 2008. For a variety of reasons, higher education is unlikely to ever be universal. Most of the people who question whether or not attending college is worth it are analysts and commentators. How does the traditional, college aged population feel about the viability of college attendance? It’s difficult to generalize. Personally, I spend more time talking with parents of college-aged children than I do speaking with prospective students, and I live in a state where there is a very high participation rate in postsecondary education, so my perspective is limited by those and other factors. The spectrum of awareness about college costs among today’s graduating high school seniors is likely to be broad. But again, the costs of attending college can vary considerably by type of institution. I know more parents are stressed about college costs – not only from what I read, see, and hear in the media, but also from conversations with my neighbors. There’s certainly evidence that many parents are looking to economize in a wide variety of areas, including their education investments for their children. But college participation rates are not yet falling, so by and large the populations you would expect to go to college are going to college.

Q: If you had 3 wishes and make three changes in higher education, what would they be?

A: We do need greater transparency about the cost to families for sending their family members to college. Net price calculators are a step in the right direction, but we need more education to support financial literacy. I’d also like to see more analysis undertaken to examine what happens when higher education transitions from being perceived as a public good, as it was decades ago when as much as 80 percent of a public university’s expenses might be covered by the state, to being perceived as a private good, as it is increasingly viewed today and where public universities on average have only about 20 percent of expenses covered by state budgets. Sometimes those figures are in the single digits. Do economies perform better under one scenario or the other? We need a better understanding of this sort of question. And finally, I’d like to see the regulatory apparatus support increased innovation. Accreditation is – both in a good sense and a bad sense – a self-replicating process. That’s good because it sets a certain standard, but it’s bad because it limits new approaches. I’d like to see the U.S. Department of Education create a demonstration program that would allow a small number of unaccredited organizations to award degrees under close supervision to see what new models – potentially more cost effective and academically effective models – might emerge.

Well, that concludes my interview with Peter Stokes. I would like to thank him for taking time out of his busy schedule to speak with us.

 

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Matthew Lynch published in HBCU's, Higher Education, Matthew Lynch

Seven Biggest Mistakes Parents Make in Saving or Paying for College

Note: The following guest post comes to us from Jack Schacht, the founder of www.MyCollegePlanningTeam.com, a Wheaton, Illinois based organization that brings together experts from both the academic and financial services communities who work in coordination to help families find the right college for the right price.  Contact him at  [email protected].

As tuition costs continue to skyrocket, families can no longer afford to make any mistakes when it comes to paying for college.

Making mistakes can drive up your Expected Family Contribution (EFC) causing some families to pay thousands more for college than necessary.   If they only knew the many rules that affect EFC, they could save money.

Here are the seven most common mistakes families can make when saving and paying for college:

1) Saving in a student’s name.

Not everyone knows that savings in a parent’s name (that is in excess of their asset protection allowance) is assessed at 5.64% in calculating the EFC.  The asset protection allowance for a typical college family is around $45,000.

Savings in a student’s name, however, are assessed at 20% or 25%, depending on the methodology the school uses to calculate EFC.  Accordingly, if Grandma gives your child $30,000 to put in his own college savings account, you have just added at least $6000 to your Expected Family Contribution.

To make matters worse, the student does not have an asset protection allowance.  So never have assets in the student’s name.

2) Paying for college with a Grandparent-owned 529

Some financial advisors  have actually recommended this as a strategy to reduce college costs. Make sense, right?  If neither the parent or the child are holding the asset, what could possibly be the problem?

While it may be true that there is no assessment on either the parent or student’s assets, there is still an assessment—and it’s much worse. According to FAFSA rules, money paid out of the Grandparent’s 529 is considered untaxed income to the student. And the assessment on student income is a whopping 50%

While students don’t have an asset protection allowance, they do have a small income protection allowance.  Currently, the student’s gross income protection allowance is about $6300. What this means, however, is that every dollar over the income protection allowance is assessed at fifty cents on the dollar.  Accordingly, if Grandma sends $16,300 dollars to the college   for your student’s first year’s tuition, you will be have raised your EFC by an additional $5000.

3) Using or borrowing Retirement Funds

Many parents make the mistake of thinking they are getting a break from the government when they pay for college out of their IRA funds.  After all, the government waives the 10% penalty for funds withdrawn that are used for college.

What parents forget, however, is they are adding to their income when they withdraw funds from an IRA and parent income is typically assessed at 47%.  It’s another very bad move.

4) Missing Important tax deductions & tax credits

Parents sometimes make an error in paying their entire college costs out of their 529s only to find out that they can no longer claim the American Opportunity Tax credit.

Because the parent has already received a tax benefit from the tax-free distribution from their 529, the federal government considers that claiming a $2500 tax credit would be “double-dipping” and that is not allowed.  So work with your tax advisor on this one.  You don’t want to miss $2500 in free money from the government.

5) Being unacquainted with EFC reduction strategies

Before parents figure out how they are going to pay for college, get a good book on the subject.  One of the best books out there dealing with EFC reduction strategies is written by Kalman Chany and called Paying For College Without Going Broke. 

 Knowing the material and implementing the strategies yourself, however, may not be a wise move for everyone.   Families are encouraged to seek the help of a college planning specialist .   Just using your regular CPA can hinder your chances for financial aid.

6. Knowing the different methodologies for calculating EFC

A parent recently followed his accountant’s advice to cash out his $150,000 in stock funds and pay down the mortgage.  He was told it would save a bundle on college.

While it’s true that this move could save him about $7500 a year in college costs, that’s not how it worked out.

Under the Federal Methodology, which most all public universities and a majority of private colleges use, this move could have achieved that result.  That’s because under FAFSA rules, the equity in one’s home is not used to determine EFC.

This was not true, however, with all three schools their daughter was interested in attending.  These particular schools used what is called the Institutional Methodology to determine EFC.  Under that method, home equity IS assessed.

Note only did this move do little to bring down EFC, but the stocks the man cashed out would have increased in value by about 25% if he  held on to them during that two year period!

7.  Not Understanding How to Use the Appeals Process

Again, many people do not understand that there is still money that can be saved even after their receive their final award letters.  Awards can be appealed.  Obvious examples would be when there has been a change in family income or if the family was suddenly incurring some unexpected medical expenses.

What really is news to parents, however, is that an appeal can also be made because another college, which is not your student’s first choice, made your student a better offer.  You do not want to try playing one school against the other, however, unless the other college has a similar ranking to the college to whom you are appealing.

Most important, read up on how to write a good appeals letter before you act.  You can also seek out of a college coach in your area who does this kind of work.

There is a lot to navigate out there when planning for college.  Next to your home, however, college is likely to be your second largest investment in your lifetime.  Take the time to do it right!

 

 

 

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Matthew Lynch published in HBCU's, Higher Education

HBCU Insights: Changing the Discourse on HBCUs

A column by Larry J. Walker

Ensuring every American has the opportunity to develop marketable skills is critical. After graduating from high school, completing an associate degree, GED or serving in the U.S. military aspiring engineers, scientists and teachers seek reasonably priced colleges with supportive environments. However, post-secondary institutions with prohibitive tuition, room and board and fees prevent students from low and moderate income backgrounds from obtaining a bachelors degree. Fortunately, recent state and federal proposals are attempting to make college more affordable while increasing the number of minority, first generation, low to moderate income college graduates. Throughout their history historically Black colleges and universities (HBCUs) enrolled more students from predominantly low income and minority communities in comparison to predominantly White institutions (PWIs). For this reason, HBCUs are equipped to support students in need of academic, emotional and social support. Unfortunately the recent struggles of some HBCUs tarnish their distinguished history of educating students.

In 2002, Morris Brown College, a HBCU located in Atlanta, Georgia lost its accreditation because of a plethora of financial problems. The African Methodist Church founded Morris Brown in 1881 to educate Black students. Since Morris Brown’s inception the institution educated thousands of students who may not have attended college. More than a decade after losing accreditation the college continues to graduate a small number of students. Morris Brown’s struggles foreshadowed the demise of St. Paul’s College, a small HBCU, located in Virginia. In 2013, St. Paul’s, encountered financial problems that forced the historic institution to close. Some pundits suggested the loss of St. Paul’s and Morris Brown’s financial exigency signaled an end to HBCUs golden era. However, upon closer examination several HBCUs are continuing to thrive despite a variety of obstacles.

Hampton University has a Cancer Research Center that focuses on closing disparities and developing new research. Recently, the National Science Foundation (NSF) awarded Hampton a $622,000 grant to increase the number of African-Americans in computer science. The grant reflects Hampton’s ability to compete with larger institutions to secure vital funding. Similarly, Morgan State University signed an agreement with the New York Academy of Sciences, which will create opportunities for science, technology, engineering and mathematics (STEM) majors. The initiative is consistent with multiple partnerships the university has solidified over the last few years.

Several other HBCUs including Fisk University and Howard University have received funding to improve programs. For instance, a researcher from Howard was recently awarded a $1.1 million grant from the National Institute of Health (NIH) while Fisk received funding to maintain their archives. Each institution has a legacy that extends beyond the classroom. Fisk and Howard alumni have made major contributions in education, politics and science. Despite the success of HBCUs, collectively, they face a variety of challenges. Recently, South Carolina State University had to convince legislators not to temporarily close the university because of financial difficulties. Closing the university would have led to dire consequences for students including transferring to other institutions. Moreover, legislators would have resisted reopening the state’s only public HBCU.

 

While the problems facing HBCUs including South Carolina State University are genuine. There are factors that contributed to the disparities between South Carolina State and other public universities including the University of South Carolina. Unfortunately the media focuses on the financial struggles at HBCUs without examining the issues from a historical perspective. HBCUs struggle to fund programs, rebuild facilities and provide scholarships because of inequities. For instance, during the 1800’s several HBCUs were founded because of Morrill Land Grant Acts (I & II) yet they are not funded at the same level as PWIs. The uneven support for land grant and other public universities has forced HBCUs to file lawsuits to counter years of inadequate funding. Regrettably, some HBCUs have struggled financially which reinforces misconceptions including: 1) HBCU faculty members are not as accomplished as their counterparts at PWIs 2) HBCU’s are not as rigorous and 3) HBCU’s mission of educating Black students is no longer relevant in a post-racial society.

Changing the discourse regarding HBCUs has been difficult but advocates, institutions and stakeholders have taken steps to counter the deficient oriented focus. For example, Hampton University hosted the AARP HBCU Awards Ceremony, which recognizes the contributions of administrators, faculty, students and alumni. The annual event is a showcase that allows sponsors to challenge preconceived beliefs regarding HBCUs. Some of the awards include best: marching band, student government association, research center, alumni publication as well as student of the year (male and female) and faculty member of the year.

The AARP HBCU Awards Ceremony is part of a growing trend highlighting the accomplishments of HBCUs, alumni and students. For instance, the HBCUstory symposium sponsored by Fisk alumnae, Dr. Crystal DeGregory, is an annual event that brings together scholars to examine HBCUs historical significance. This year the symposium titled “Reconstruction in a New Age Resistance: Respecting our Roots+ Restoring our Rights” will be held at Fisk University. Sponsoring events that change the narrative on HBCUs is paramount.

For more than a century HBCUs educated Black students from predominantly low and moderate income families with limited resources. While some students from HBCUs come from affluent backgrounds the majority of students are dependent on federal and state funding. Thus, ensuring HBCUs have funding to educate students is important. Historically, Black students have encountered a variety of barriers including living in substandard housing, limited educational opportunities and pathways to success. HBCUs prepare students to break down obstacles by emphasizing concepts related to shared responsibility and political empowerment. Without these institutions thousands of Black students would face a cloudy future.

Read all of our posts about HBCUs by clicking here.

____________

Dr. Larry J. Walker is an educational consultant focused on supporting historically Black colleges and universities (HBCUs). His research examines the impact environmental factors have on the academic performance and social emotional functioning of students from HBCUs.

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Matthew Lynch published in HBCU's, Higher Education

How should we measure the size of a university’s endowment?

Sarah Waldeck, Seton Hall University

Congress is rattling its saber at colleges and universities with endowments worth U$1 billion or more. Committees from the House and Senate have sent a joint letter to 56 private colleges and universities, asking for comprehensive information about endowment spending and management policies.

Thomas W. Reed, representative for New York’s 23rd Congressional District, is talking about legislation that would require colleges and universities with endowments of $1 billion or more to spend 25 percent of their endowment earnings on financial aid or forfeit their tax-exempt status.

But what is so significant about the $1 billion mark? Are all endowments with $1 billion so huge that Congress should treat them differently than endowments with less than $1 billion? And are all endowments less than $1 billion so small that Congress should ignore them?

From my perspective as a professor who has studied endowments, the only real significance of $1 billion is that it shocks the public because it sounds like so much money.

What really matters is how much buying power a school needs and how much buying power an endowment has. The bigger a school’s budget, the more endowment is necessary. To figure out which colleges and universities have large endowments, you have to consider a school’s expenses.

How do endowments work?

An endowment is like a savings account that exists to support college or university operations. The assets in an endowment usually come from donations. The funds in an endowment are invested; each year a school spends a portion of these returns and then puts the remainder back into the endowment.

In good financial times, an endowment allows a school to spend more on priorities like financial aid, research budgets or professor salaries. In bad financial times, an endowment acts like a rainy day fund to ensure that schools will not have to dramatically reduce spending in important areas.

Because an endowment’s primary purpose is to support institutional operations, the strength of a $1 billion endowment is relative to the size of an institution’s expenses.

How does an endowment work?
Philip Taylor, CC BY-SA

To illustrate, I want to take a closer look at three of the schools that received the congressional request for information because they have endowments of $1 billion or more. In the context of this discussion, there’s nothing particularly special about these three schools except that they demonstrate why expenses are relevant to endowment size.

Each year, the National Association of College and University Business Officers ranks endowments by their absolute value. In 2015, Harvard was at the top of the heap with an eye-popping $36.4 billion endowment. Vanderbilt University was in 23rd place, with $4.1 billion. Grinnell College was considerably farther back, coming in 50th with an endowment of almost $1.8 billion.

Now let’s add a fourth school to the mix: Colgate University. As before, in the context of this discussion there’s nothing special about Colgate except that it helps illustrate why endowments and expenses need to be considered simultaneously.

When measured only by absolute endowment value, Colgate is way behind Harvard, Vanderbilt and Grinnell. Colgate comes in 103rd place, with an $892 million endowment. And Colgate was spared the congressional letter because its endowment did not exceed the $1 billion threshold.

Expenses matter

Now consider these same schools, this time in light of both absolute endowment value and all expenses – the costs incurred to fulfill the school’s educational mission, to administer the institution and to fundraise. Unsurprisingly, these four schools have wildly different expenses. Harvard and Vanderbilt are large research universities, while Grinnell and Colgate are small liberal arts colleges.

In 2013 (the most recent year for which data is readily available), Harvard had expenses of $4.4 billion; Vanderbilt, $3.8 billion; Grinnell, $97.6 million; and Colgate, $172.2 million. There’s been a lot of discussion about whether colleges and universities are doing enough to control costs. But to measure the strength of an endowment, we can assume that current institutional expenses are representative of future institutional expenses.

An endowment helps fund scholarships and research budgets.
kylebaker, CC BY-NC-SA

Grinnell’s endowment is so enormous that it can pay for a whopping 18 years of expenses, until today’s infants are ready to matriculate. Harvard’s endowment is large enough to cover eight years. And Colgate – which does not exceed the $1 billion threshold – can pay for five years.

But Vanderbilt, with its $4.1 billion endowment, cannot cover even two years’ worth of expenses.

Some academics have argued that endowments are excessively large once the endowment can cover more than two years of expenses. Others have suggested that an endowment is much bigger than a school needs when it can pay for more than five years of expenses.

At some point, an endowment may become vastly larger than what a college or university needs to ensure its success. No school really needs an endowment that is large enough to cover a half-decade or more of expenses. But to determine whether an endowment is so large that it warrants different treatment than others, Congress must consider the endowment in relation to institutional costs. It cannot simply use $1 billion as some kind of magical threshold.

Modifying endowment tax policy

Favorable tax policy is one of the reasons that endowments can accumulate $1 billion or that a school can have an endowment large enough to cover 18 years of expenses. The government collects fewer tax dollars than it otherwise would because donations to endowments qualify for the charitable deduction, and endowments do not have to pay taxes on their investment returns.

In my view, schools like Harvard and Grinnell are going to fight tooth and nail to hang on to this preferential tax treatment. But when a college or university has an endowment that is large enough to cover its expenses for years and years into the future, I believe lawmakers should conclude that the forgone tax dollars would be better spent elsewhere. At some point, an endowment has such ample funds that it no longer needs government subsidy. This means goodbye to tax-free investment returns and to the charitable deduction.

Eliminating the charitable deduction may mean that donors would give less, but they would not stop giving altogether. As I’ve described elsewhere, research has shown that the charitable deduction is only one of the reasons that donors give to colleges and universities. Some donors feel a responsibility to “give back” to their alma matter. Others desire the social status and public recognition that giving can provide, or want to influence institutional policy. Some people give simply because it makes them feel good. For many donors, a combination of all these factors motivates them to give.

But even if eliminating the charitable deduction means that some donors would choose to direct their giving elsewhere, chances are that the recipient organization would need the donation more than a school with a very large endowment.

Although schools are unlikely to see it this way, less preferential tax treatment would actually be a sign of success: it means that donors have been so generous and the endowment has been so well-managed that the school now requires less public assistance than others do.

So, legislators should stop fixating on the $1 billion mark and instead evaluate endowments in their larger institutional context.

Before Congress singles out certain endowments for less preferential tax treatment, it needs to distinguish between endowments that sound obscenely large and those that actually are.

The Conversation

Sarah Waldeck, Professor of Law, Seton Hall University

This article was originally published on The Conversation. Read the original article.

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Matthew Lynch published in Equity, HBCU's, Higher Education, Matthew Lynch

Retirement in Presidential College Ranks Opens Diversity Door

College presidents must be able to multitask. Though not in the official job descriptions, these administrative leaders must be figureheads, court the general public, delegate effectively and always keep an eye on the horizon to guide their ships to bigger, better waters. It is a tough job and like many high-profile ones, comes with its share of scrutiny in the public eye.

As the latest wave of college presidents looks towards retirement, the higher education community has the opportunity to promote a more diverse presidential core. The next five years will set the tone for college leadership at the highest level for the coming decades and really for the entire student population too.

Just the Facts

• 61. Average age of college presidents in 2011.
• 92. Percentage of college presidents aged in the mid-50s to mid-70s.
• 14. Average number of years retiring college presidents first serve in the role.
• 40. Normal number of new college presidents in the American Association of State Colleges and Universities every year.
• 109. Actual number of new college presidents from April 2011 to August 2012.
• 6. Number of new college presidents this school year in the California State system alone.
• 13. Percentage of college presidents who are racial or ethnic minorities, as of 2012.
• 14. Percentage of college presidents who were racial or ethnic minorities in 2006.
• 26. Percentage of women college presidents.

Qualified Prospects

In the past, college presidents from other schools and college vice presidents have most often ascended the ranks to fill empty presidential seats. While this still happens about 19 and 25 percent of the time, respectively, other leaders like provosts and deans are increasingly being considered to fill the college president vacancies. Some schools even search outside the college community to find leaders from other industries that fit the bill. There is really no hiring formula that applies to all college president spots and a “qualified” candidate could feasibly jump several levels of hierarchy to claim the spot.

Encouraging Diversity in Presidential Ranks

The first step to building diversity at the highest college administrative level is simply recognizing the opportunity at hand. American institutions of higher education often consider how a diverse student, and even faculty, population should look but do not extend that to top-tier leadership roles. Colleges need to rethink that strategy. I believe the trickle-down diversity effect works well in college settings. Instead of starting with the largest group (students), start cultural change at the top of the pyramid. If a school has a well-balanced student population already in place, chances are that the faculty and administration reflect that fact too.

The next step is to actively include diversity in the search process. I’m not saying that white men with the right qualifications should be excluded from the running; I just mean that colleges with open president seats should make sure the short list of candidates has some variety in experience, ethnicity, sex and race. The Rooney Rule, established in 2003 by the NFL, mandates that at least one minority candidate be interviewed for all head coaching spots. I think colleges need to do that same with their academic leaders.

Those in lower to middle-level leadership roles in colleges that have presidential aspirations should get ready now. Make sure your name is associated with talks about the future of the college by getting yourself involved in the action. Get published. Envision yourself on the same plane as the college presidents that went before you but realize that you have a unique voice to lend to the college community you want to lead. Embrace the turning tides. Be an active part of the changes in college administration and you will in turn be part of the progress.

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