Ongoing discussions about federal priorities and fiscal decisions have the potential to significantly reshape higher education access and affordability for generations to come. As we examine the potential consequences of various fiscal approaches like the current budget reconciliation, it becomes imperative to understand how potential budget reductions — particularly those that could affect Pell Grants, SNAP benefits, Medicaid, and student loan repayment plans — might disproportionately impact Historically Black Colleges and Universities (HBCUs) and the students they so effectively serve.

Understanding the Budget Landscape

We often hear discussions around federal budgets that outline shifts in spending priorities, sometimes referred to colloquially as “skinny budgets.” While a “skinny budget” typically refers to a preliminary proposal outlining broad spending priorities without full details, the concern arises when such frameworks suggest substantial reductions in programs crucial for higher education access. These discussions occur against a backdrop where the average published costs for tuition, fees, room, and board at public four-year institutions have risen by approximately 15% over the past decade, even after adjusting for inflation, while median household incomes have struggled to keep pace.

The Vital Role of HBCUs

HBCUs represent just 3% of four-year colleges in the United States, yet their impact is monumental. HBCUs produce an estimated 80% of Black judges, 50% of Black doctors, and 50% of Black lawyers. Despite this outsized contribution to professional diversity and economic mobility, HBCUs have historically contended with significant resource disparities compared to predominantly white institutions (PWIs). For instance, a The Century Foundation highlighted that public HBCU endowments are, on average, 30% smaller per student than those at comparable PWIs, and state underfunding of land-grant HBCUs has been documented in the billions over decades. These underlying inequities make HBCUs and their students particularly vulnerable to shifts in federal support.

The Pell Grant: A Lifeline Under Pressure

Should significant reductions in Pell Grant funding ever be enacted — for example, a hypothetical 15% cut — it could pose a severe threat to HBCU enrollment and student success.

By the numbers:

• Approximately 70% of HBCU students are Pell Grant recipients, compared to around 30% of undergraduates at non-HBCUs
• The maximum Pell Grant currently covers only about 27.3% of the average cost of attendance at a public four-year institution, a stark decline from its purchasing power in the 1970s when it covered nearly 80%
• A hypothetical 15% cut to the current maximum Pell Grant (around $7,395 for 2024-25) would mean a reduction of approximately $1,100 per student annually

Consider Maya’s story: Maya, a first-generation college student from Atlanta, receives the maximum Pell Grant to attend an HBCU in Alabama. If her grant were cut by $1,100, her family would face an immense challenge to cover this gap — equivalent to nearly three months of grocery costs for many working-class families. For Maya, this could mean increasing her work hours from 15 to 25 hours weekly, inevitably reducing time for studies and potentially delaying her graduation.

Beyond Tuition: The Importance of SNAP and Medicaid

Potential cuts to essential support programs like SNAP benefits and Medicaid could also create significant hardships for college students. Discussions of reducing funding for these programs by tens or even hundreds of billions over a decade are not uncommon in various fiscal proposals.

Research from the Hope Center for College, Community, and Justice reveals the stark realities:

• Approximately 46% of students at four-year HBCUs have experienced food insecurity
• Around 55% have faced housing insecurity
• The study also found that approximately 20% of students experienced homelessness in the previous year

Consider Jamal’s situation: Jamal, a junior studying computer science at an HBCU in Louisiana, relies on SNAP benefits. A significant reduction in these benefits, say $75 monthly, could impact his ability to afford adequate nutrition. Simultaneously, were changes to Medicaid eligibility to jeopardize his access to medication for a chronic condition, the combined effect could force Jamal into impossible choices between food, medicine, and his education.

The Hidden Impact of Repayment Plan Limitations

Proposals that seek to consolidate or eliminate existing income-driven repayment (IDR) plans, potentially replacing them with less generous options, could disproportionately affect HBCU graduates.

• The Debt Burden: According to analyses of federal data by Brookings Institution, Black bachelor’s degree holders carry, on average, significantly more student loan debt, around $25,000 more, than their white peers a few years after graduation.
• For HBCU graduates specifically:
  • The average federal loan debt at graduation is approximately $32,000
  • About 80% take out federal loans, compared to roughly 55% of students at non-HBCUs

Consider the future of Aisha: After graduating with $40,000 in debt from an HBCU, Aisha plans to become a public school teacher. Current IDR plans might offer her manageable monthly payments (e.g., around $200). If these plans were replaced by a less accommodating system, her payments could substantially increase (e.g., to $380 or more), severely impacting her financial stability and potentially discouraging her from pursuing a career in public service.

The Ripple Effects on Communities

The consequences of underfunding educational opportunity extend far beyond campus boundaries. HBCUs generate approximately $14.8 billion in economic impact annually and support over 134,000 jobs. Constraining these institutions threatens not only student outcomes but also regional economic vitality.

When students like Maya, Jamal, and Aisha struggle to afford or complete their education, their communities lose out on their full potential. While precise figures vary by study, the consensus is clear: college graduates, including those from HBCUs, contribute significantly more in lifetime earnings and civic engagement than individuals with only a high school diploma.

A Path Forward

Rather than contemplating measures that could diminish access and affordability, our elected officials should strive to:

• Preserve and strengthen Pell Grants: Advocate for increasing the maximum award to restore its purchasing power and indexing it to inflation
• Maintain critical support systems: Recognize that SNAP and Medicaid are essential for the academic success and well-being of many disadvantaged students
• Implement equitable loan repayment: Ensure repayment options acknowledge wage disparities and support graduates entering vital public service fields
• Increase institutional support: Direct robust and equitable funding to HBCUs to address historical underfunding, enhance infrastructure, and expand capacity

Conclusion

Decisions about federal spending are choices about our nation’s future and who will have the opportunity to contribute fully to it. Measures that could disproportionately harm HBCU students risk undermining institutions that have been unparalleled engines of advancement for Black Americans.

As we engage in debates about national priorities, let us remember that education remains our most powerful catalyst for opportunity and progress. Investing in HBCUs and their students is an investment in a more equitable, innovative, and prosperous future for all Americans.

Photo credit: Oscar Sosa