Cuts to federal student loans for graduate and professional students could be devastating to African-Americans and, in a ripple effect, historically Black colleges and universities, according to a study by the AccessLex Institute.
As Congress wrestles with reauthorization of the Higher Education Act, some lawmakers have proposed limiting federal loans to graduate students as a way to reduce over-borrowing and high loan debt levels for students – even though professional and grad students have some of the best repayment rates.
Black students take out federal student loans at the highest rate of any racial group, and HBCUs and their students tend to rely more heavily on those funds than their White counterparts.
AccessLex researchers said reducing or eliminating federal loan options such as Grad PLUS would force many Black students to either not pursue graduate studies or apply for private-sector educational loans, which have stricter criteria and higher interest rates.
“Proposals designed to have the federal government retreat from providing loans to those seeking graduate and professional degrees are misguided at best, and if implemented, would substantially hinder access to advanced education for those who need it most,” the report states.
The proposed PROSPER Act is one example of legislation that would curb federal loans to graduate and professional students. Following through on such proposals in a reauthorized HEA – a law enacted to expand access – would impede access for Blacks, Hispanics and other underrepresented groups, according to the study report.
Keinan Thompson, a senior policy associate with AccessLex and the report’s co-author, told Diverse that the change would be “a crippling blow at a minimum” to underrepresented students and that “it would probably be very swift.”
