By Dr. ADA M. Fisher

Shutting our ears to some justifiable criticism of Obama’s policies could kill past gains for blacks and the poor, particularly in the area of education.  Rumor had it that the Obama Administration budget was to cut $85 million from the HBCU’s, about $67 million from Native American institutions and increased the amount to Hispanic universities from $95 to $98 million.  It is clear policy for such may be driven by population growth favoring those likely to vote Democrats in; however there is more to this than meets the eye.
 
All of our colleges and universities, particularly the small ones with high tuition depend of federal assistance to make education affordable.  Given that grants are not performance justified as they should be, loans have been loosened as bad as those which prompted the mortgage crisis rather than make banks the lender of choice. 
 
This makes the government function more as a central bank which isn’t its role.  Schools which are doing all they can to educate are tellers now having dumped in their laps the management of government loans and collection on such.  This requires more administration and staff for these institutions which they have to pay.  This further mandates penalties on them if students don’t repay loans in which schools had little say.  If student collection failure rate exceeds a certain level, say 25%, further monies will not be available to their matriculating institutions for students based on need.
 
George W. Bush was never given credit for providing more funding for HBCU’s that any president including the African American community’s beloved “Bill” Clinton.  Bush reportedly found $85 million in unused title III monies which he designated to help struggling HBCU’s since proportionately they graduate more black students than other colleges and universities. 

Now cometh forth Obama whose administration reportedly refuses to release this money, makes all schools responsible for collecting on loans that the government approves without the schools input and will inevitably force the schools into debt and possible bankruptcy when their students don’t repay the money as is now happening. 
 
Sound familiar.  (Not your house this time but your education!)
 
If this scenario is followed to its logical end, HBCU’s as well as smaller challenged private and rural schools, or those without endowments of more than $50-100 million may have their monies seized to repay loans of defaulting students.  In 30 years will more than a dozen black educational institutions exists if this madness continues?
 
Might I suggest the following to Senator Scott Brown and Republicans-Stop the Madness!                               
          

1) Save all of our educational institutions by removing them from the money lending business.  Put banks or an educational financing entity in charge which should be reluctant to make loans to those without the grades.                                                                                                     
          

 2) Don’t handicap colleges for the failure of students to repay loans.  Make the lending agencies and students accountable which also shouldn’t spare the government for another unfunded mandate. 
         

3) Assess no penalties to college dissimilar to what students are being offered, 10% of their income (endowment) per year and dissolution after 20 years. 

 Or consider allowing those banks which received TARP monies who hold these college debts to write them off against any repayment debts.
 

Dr. ADA M. Fisher is NC Republican national Committee Woman. a licensed school teacher and more school board member as well as a physician. Contact her at P. O. Box 777; Salisbury, NC 28145; telephone (704) 223-2321; Fisher@Getadoctorinthehouse.com.