Historically Black Colleges and Universities
Fact Sheet
September 2008
Historically Black Colleges and Universities (HBCUs), Tribally Controlled Community Colleges (TCCs), and Navajo Community Colleges, as defined by statute, have been eligible for relief from the consequences of cohort default rates on their ability to participate in Title IV HEA programs, as defined in 34 CFR 668.198. This exemption expired June 30, 2004 and has not been extended. Therefore, beginning with the official FY 2002 cohort default rate, these schools were subject to the same cohort default rate sanctions as any other institutions.
As of September 2008, all 98 eligible HBCUs have official FY 2006 cohort default rates that fall below regulatory thresholds. No HBCUs are subject to cohort default rate sanctions or the consequent loss of Title IV Student Financial Assistance program eligibility.
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.
HBCUs, TCCs, and Navajo Community Colleges are encouraged to continue to use an acceptable default management plan (such as found in Appendix B to 34 CFR 668 Subpart M).
Questions regarding the Title IV Federal Student Aid eligibility status of these schools or other HBCUs should be forwarded to:
U.S. Department of Education
Federal Student Aid
Business Operations
Default Prevention and Management
(202) 377-4259