FEWER RESOURCES, MORE DEBT - LOAN DEBT BURDENS STUDENTS AT HISTORICALLY BLACK COLLEGES AND UNIVERSITIES

Oct 15, 2026

Student loans have become an increasingly important way for families to pay for college, yet the burden falls unevenly on students at historically black colleges and universities (HBCUs). This issue brief analyzes federal loan borrowing rates, amounts, and repayment outcomes for HBCU undergraduates compared with non-HBCU peers, using the most recent publicly available data. Findings show higher federal borrowing incidence, larger loan amounts, greater shares of high-balance borrowers, and lower repayment rates among HBCU students, alongside policy recommendations.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages20

Reading Time50 min

AccessFree to download

Executive Summary

Key Findings at a Glance

Introduction

Key Findings

HBCUs and Student Debt: Contextualizing the Challenges

Policy Recommendations

Summary

Appendix

Endnotes

FEWER RESOURCES, MORE DEBT: Loan Debt Burdens Students at Historically Black Colleges and Universities Acknowledgments Many individuals have contributed to the production of this report. The Frederick D. Patterson Research Institute would like to thank Jonathan Turk, senior policy research analyst atthe American Council for Education’s (ACE) Center for Policy Research and Strategy, Christopher Nellum, formally with ACE and currently policy director at Young Invincibles, and Patricia Steele, principle consultant at Higher Ed Insight for collecting data that has served as the foundation for this report. We also thank Brian K. Bridges, vice president of research and member engagement, for providing valuable feedback, comments and editing on previous drafts. We also thank the UNCF communications team who provided editing and design services: Adam Kemp, Steve Rosa and Michelle Glennon. UNCF is deeply grateful for the collaborative support which made this publication possible. Authors: Katherine M. Saunders, Ed. M. Senior Research Associate, UNCF Frederick D. Patterson Research Institute Krystal L. Williams, Ph.D. Senior Research Associate, UNCF Frederick D. Patterson Research Institute Cheryl L. Smith Senior Vice President, Public Policy and Government Affairs Suggested Citation: Saunders, K. M. , Williams, K. L. , & Smith, C. L. (2016) . Fewer Resources More Debt: Loan Debt Burdens Students at Historically Black Colleges & Universities. Washington, DC: UNCF Frederick D. Patterson Research Institute. Contents 02 Executive Summary 04 Introduction 05 Key Findings 09 HBCUs and Student Debt: Contextualizing the Challenges 16 Policy Recommendations 14 Summary 15 Appendix 17 Endnotes © 2016 UNCF 1805 7th Street, NW Washington, DC 20001 T 202 810 0246 F 202 234 0225 [UNCF.org](UNCF.org) I FEWER RESOURCES, MORE DEBT: LOAN DEBT BURDENS STUDENTS AT HISTORICALLY BLACK COLLEGES AND UNIVERSITIES Executive Summary Student loans have become an increasingly important way for students and their families to pay for college. But for students at historically black colleges and universities (HBCUs), student loan debt is a substantial burden. Students who attend these institutions—many of whom are low-income and firstgeneration—must borrow at higher rates and, consequently, graduate with substantially higher debt than their peers at non-HBCUs. This issue brief examines the rates, amounts and distribution of student loan debt among HBCU students relative to their non-HBCU peers. This analysis focuses solely on undergraduates attending fouryear public and private, non-profit institutions, and employs the mostrecent publicly available data. Key Findings at a Glance: 1. A higher percentage of students attending HBCUs use federal loans to finance college compared to their non-HBCU peers. In 2013, the proportion of HBCU students who borrowed federal loans was 25 percentage points higher than that of their nonHBCU peers (80 percent vs. 55 percent) . HBCUs $26,266 NON-HBCUs $14,881 2. HBCU graduates borrow substantially greater amounts of federal loans than their non-HBCU peers. In 2012, HBCU bachelor’s degree recipients borrowed nearly twice the amount of federal loans as their non-HBCU peers ($26,266 vs.$14,881) . $ 3. The percentage of HBCU graduates who borrow large amounts ($40,000 or more) of federal loans to finance their degrees is four times that of non-HBCU graduates. For HBCU bachelor’s degree recipients who borrowed a federal loan in 2012, one in four students, or 25 percent, borrowed $40,000 or more. Only six percent of nonHBCU bachelor’s degree recipients borrowed $40,000 or more. 4. A higher percentage of HBCU students borrow not only federal subsidized loans, but also more costly federal unsubsidized loans and Parent PLUS Loans. Sixty-five percent of HBCU students borrowed a federal unsubsidized loan, and 10 percent borrowed a Parent PLUS Loan,

FAQs

How do HBCU students’ federal loan borrowing rates compare with non-HBCU students?

A higher percentage of students attending HBCUs use federal loans than their non-HBCU peers. In 2013, the proportion borrowing federal loans was 25 percentage points higher (80% vs. 55%).

Do HBCU graduates borrow more federal loans than non-HBCU graduates?

Yes. In 2012, HBCU bachelor’s degree recipients borrowed nearly twice the amount of federal loans as their non-HBCU peers ($26,266 vs. $14,881).

How do loan repayment rates differ between former HBCU and non-HBCU students?

Seven years after leaving college, the average cohort repayment rate for HBCU students is lower than for non-HBCU students (59% vs. 85%).

Oct 15, 2026

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