All of the nation’s historically black colleges and universities eligible for federal funding are below the U.S. Department of Education’s threshold for student loan default rates, based upon three-year repayment data.
It is the third consecutive year that participating HBCUs have not faced removal from Title IV and Pell Grant funding programs for posting loan default rates greater than 30 percent for three consecutive preceding years.
HBCUs have deployed innovative approaches towards default management and reduction. Such strategies include implementation of a default management plan that engages stakeholders, identifies approaches to reducing default rates, and tracks measurable goals. These schools have increased borrower awareness of obligations through incorporating borrower topics at orientation sessions and providing enhanced entrance and exit counseling. Other best practices include borrower tracking, increased contact with delinquent borrowers, taking advantage of the cohort default rate challenge/adjustment/appeal processes, and partnering with other stakeholders to optimize default prevention, resolution, and reduction.
Federal Student Aid Loan Default Fact Sheet – U.S. Department of Education
The national student loan default rate for all colleges and universities in the 2015 cohort is 10 percent. HBCUs which exceeded the default rate since 2010 include:
Talladega College – 32 percent (2015)
Virginia Univ. of Lynchburg – 33 percent (2014), 35 percent (2013)