Chapter 4: Successful Financial Models at Hbcus

In the United States today, there is a broad discussion taking place regarding the cost of attendance at colleges and universities. As tuition and fees have risen over the years, the public outcry about this increasing tuition has been heard loud and clear. Scholars have questioned the quality of the degree being sought by students, and the outcomes produced by colleges and universities have come under a microscope (Economist, 2012; Sander, 2013). Arguably, no other sector in higher education is scrutinized more than Historically Black Colleges and Universities (HBCUs). Opponents of HBCUs have pointed to their abysmal retention rates, low 6-year graduation rates and many have questioned the quality of the degrees produced at these historic institutions (Prince, 2014). At the same time proponents continue to show that HBCUs overproduce degrees to African American students in Science, Technology, Engineering and Mathematics (STEM) disciplines, produce the majority of African American teachers and pharmacists, and serve as a major over producer of African American students who go on to earn a PhD (Owens, Shelton, Bloom, & Cavil, 2012). While it is true that Student Retention and 6-year graduation rates lag those of other institutions, there is evidence that these students stop-in and stop-out of school due to financial aid, and that many of these students do go on to graduate in 8 to 10 years (Prince, 2014). As a result, many HBCU proponents have argued that the measures used to hold HBCUs accountable do not take into account the mission of these institutions to serve under-served populations (Jones, 2015).