To address student loan debt inequities, Diageo North America — a beverage company popularly known for Smirnoff vodka, Guinness beer and Crown Royal whiskey, among other brands — has donated $10 million to 25 historically Black colleges and universities (HBCU) across the country.
Despite the lower cost of attendance, students who graduate from HBCUs hold higher loan debt compared to those who attended non-HBCUs, according to the United Negro College Fund (UNCF).
While Black bachelor’s degree graduates borrow an average of $52,726, their White counterparts have an average of $28,006 in student loans, the United States Department of Education reported. That means Black college graduates typically experience $25,000 more in student loan debt.
“Not only are [Black and Brown communities] starting at a lower base salary in many cases, but they also have debt,” said Danielle Robinson, head of corporate responsibility at Diageo North America. “They never really catch up to be on a level playing field with their White colleagues. Part of this effort is to help alleviate some of that financial debt as they enter the workforce and enable them to be more on parity with their White colleagues.”
Each institution can use the funding to establish permanent endowment funds, while some of the money can provide financial aid support to students in various disciplines this spring and fall semester.
The selected HBCUs include Alabama A&M University, Alabama State University, Bowie State University, Clark Atlanta University, Delaware State University, Dillard University, Fisk University, Fort Valley State University, Florida A&M University, Grambling State University, Hampton University, Harris-Stowe State University, Howard University, Jackson State University, Kentucky State University, Morehouse College, Morgan State University, Norfolk State University, North Carolina A&T University, North Carolina Central University, Tennessee State University, Tuskegee University, University of Virgin Islands, Winston-Salem State University and Xavier University.
“The cost of college attendance is a major source of stress for many students …,” said Daryl Love, associate vice president of career services and professional development at Kentucky State University. “When students know they have the funds to achieve their dreams, they are more likely to continue on to graduation and they are willing to take on additional opportunities such as internships that will enhance their career readiness upon graduation.”
