Higher Learning

Are the Futures of HBCUs in Jeopardy?

Ashia Gallo

Editorial Intern

Morris Brown College and Howard University have been in the news a lot lately concerning their financial and management issues.

Howard University’s possible demise, however, is urgent to some and non-existent to others. A letter written by Howard Board of Trustee member Renee Higginbotham-Brooks to fellow trustees has raised major concerns about the future of the historical university.

According to Higginbotham-Brooks in the letter, the Howard University is “in genuine trouble” and “will not be here in three years if we don't make some crucial decisions now." 

Board chairman Addison Barry Rand insists that the school "remains academically, financially and operationally strong.”

Like Rand, many Howard students and officials deny the claims and insist there is nothing to worry about. However, just earlier this year senior administrators’ pay was cut by 5 percent and staff healthcare plans were temporarily cut.

Faculty at Morris Brown College had similar concerns raised back in 2002 when the college lost its accreditation and federal funding due to mismanagement of funds, resulting in thousands of students being forced leaving Morris Brown in the months following. In addition, the United Negro College Fund also ended its support for the school. In 2012, Morris Brown filed for bankruptcy in an attempt to avoid foreclosure.

As of recent, Morris Brown College has turned down a bailout offered by Major Kasim Reed and the city of Atlanta. The loan would have given the school $10 million in tax payer money and eliminated the school’s outrageous $35 million debt credit along with various legal issues. Anne Aaronson, Morris Brown’s lawyer, gave two reasons why the school denied the money:

1. Morris Brown has a better offer on the table
2. $10 million will not cover operating funds

Now, here are my five reasons why this rejection is puzzling:

1. The school owes $480,000 in back pay for Morris Brown staff and professors
2. The property is in jeopardy of being sold off in parts as a collection of liquor stores and payday loan shops
3. The school has to present a redistribution plan at the end of the month in bankruptcy court, at which time they must have a purchase offer to save the school
4. A 112-year-old HBCU and landmark in Atlanta is at very high risk of being non-existent in the coming years
5. The only four buildings that were still in use and could have been rented out due to the bailout are now at risk as well

Whether or not Howard is at risk should be a relevant issue to the African American community. Just as we protect civil rights monuments and sites, we must protect our historically black colleges and universities. Their milestones and legacies for Black America are as important as any other national landmark.

Clark Atlanta University School of Business Team Wins 1st Place (Again) in Annual Supply Chain Mgt. Competition

The CAU Case Team (left to right): Stephen Tolbert, Erica Devieux and David Motongo 

For the second consecutive year,  a team of students from the Clark Atlanta University (CAU) School of Business has won first place and a $5,000 cash prize in the Institute for Supply Management’s (ISM) Annual Black Executives in Supply Management Summit’s Case Competition, held Feb. 7 in New Orleans. 

The team participants were Stephen Tolbert, Erica Devieux and David Motongo, all second-year students in the master’s degree program in supply chain management.  The team was challenged to provide a network optimization solution and recommendations for a complex, real-life European company network.  The students were coached by Dr. Marcia Daley, assistant professor in the Decision Science Department at CAU, with support from assistant professor Su Gao.

Dr. Charles Moses, interim dean of the School of Business, said, “We are delighted about the success our students continue to achieve in national competitions such as those presented by the Institute for Supply Management.  These outcomes demonstrate the quality of the classroom and out-of-classroom experiences and opportunities we provide, equipping them to compete on a national and international level for careers on the global stage.”

ISM is the first supply management institute in the world.  Founded in 1915, ISM exists to lead and serve the supply management profession and is a highly influential and respected association in the global marketplace.  By executing and extending its mission through education, research, standards of excellence and information dissemination — including the renowned monthly ISM Report On Business^® — ISM maintains a strong global influence among individuals and organizations.

About Clark Atlanta University’s School of Business     

The School of Business at CAU awarded its first bachelor’s degree in 1931.  Its graduate program was founded in 1946.  The School was one of the first Historically Black Colleges and Universities (HBCUs) in the nation to have its undergraduate and graduate business programs accredited by the Association to Advance Collegiate Schools of Business International (AACSB).  It continues to produce one of the largest classes of African-American MBAs in the world, while its undergraduate program is one of the top 10 percent producers of African-American business professionals in the nation.

It is the football program, stupid!

By Curt Coulombe

Ah, that famous quip from James Carville, the political strategist for President Clinton:“It is the economy stupid!” The point was that Americans tend to vote with their pocketbooks, and their perception of the economy really matters. When I ask some soon-to-be-college students how they ended up selecting their place of study for the next 4 years, the looks on their faces makes me feel as if they want to say “It is the football program, stupid!”

Some of the responses I receive include, but are not limited to:

-That is where my parents went to school

-Cost

-That is where my girlfriend/boyfriend went

-I got the HOPE scholarship Some of these are great reasons, some not so great.

Picking a college or university to study at for 4 years is no small decision. Some of the factors that need to be considered are:

-NET cost vs GROSS cost

-field of study

-graduation rates

-size of campus

-location

There are so many factors that go into deciding on a university or college -- it is important you consider all them -- some more than others. It is no accident that college football coach’s salaries are in the stratosphere-it is some of the best advertising they can get. Let’s not let the success of the football program get too high on the list, unless of course they are giving you a fat athletic scholarship.

Curt Coulombe

CFP 123 College Atlanta

123CollegeAtlanta.com

 

Halloween is Here! {Look out for the ghastly tales of college aid planning}

By Curt Coulombe, CFP

Tonight, we will dress up ourselves and our children in costume, attend costume parties, and tell ghost stories of Halloweens past and Halloweens future. While those tales are spun for crowd pleasing and giggles, it is important to keep those fables in perspective.

I hear some great tales of college aid planning on a regular basis. Some of these are pretty spooky:

1)      My child did not win a national merit award, so there is no hope.     

Fact: There is significant aid available for middle and upper middle class families.

2)      I have a nice home-that will surely disqualify us from any aid awards.

Fact: Under the federal methodology, home equity is not counted.

3)      The people in the aid office of the university will help us.

These people are not your friends. While they can be helpful, it is important to remember their loyalty is to their employer.

There are plenty of scary tales taken as truths by families that are uninformed about the topic of college aid planning. Unfortunately, families that use these non truths in their planning can do themselves a great disservice. If there ever was a time to have accurate information, it is during the process of college aid planning.

Curt Coulombe CFP
www.123CollegeAtlanta.com

Perfect Practice: College Funding Strategies

By Curt Coulombe, CFP

It is football season here in the South. Every Friday evening, the high school football stadiums are packed with students and parents watching the games.  The players and the coaches have been on the practice fields for several hours every day, gearing up for this game. The players and plays will be analyzed for days to try and make improvements. The old adage “Practice makes perfect” is only partially true. The real truth is that only perfect practice makes perfect.

Let’s talk about college funding strategy now. I am quite confident that the average family with a high school football athlete in the house spends more time practicing for, and attending the games than they do practicing for college.

I could be wrong, and I hope that I am- but I do not believe so.

Part of the problem is that parents don’t know how to practice for the arduous task of sending your child off to the university to study for 2, 4, or more years. This may be their first rodeo in this regard, possibly the only one.

This lack of “practice” is only part of the reason the college dropout rates are as high as they are.

So how does a family do a “dry run”? There are several things you can work on in advance.

1)      Calculate your EFC

This is the amount of money your family will be expected to spend before you qualify for aid. Sound Greek? That is why it needs to be done 1 or 2 years in advance-to prepare your family’s balance sheet and income needs for the burden. 

2)      Expose your child to as many career/curriculum tools as possible

All humans change their minds, but when college students change their minds on majors the result can be expensive in the short term, in the form of lost credit hours. The average student graduates in 5.4 years. Multiply the cost per year times 5.4, and I am quite confident you will not like that number. Multiply the cost pear times 4 years, and it will look much better.  Your counselor has many tools available to help your child in that regard, and there are many additional tools available to you and your family-seek them out!              

3)      Go over the playbook

Begin to dialog with your children regarding college, and help set expectation s for both the children and the parents. What will you expect of them? What should they expect from you? Now is not the time to discourage them from applying from a prestigious, private university because you don’t think your family can afford it. If you have done the homework listed above in #1, it will make your work here in number 3 much easier. I talk with families all the time that are shocked to learn it is possible to attend a school with a much higher gross cost for less out of pocket than another school with a much lower sticker cost.

Perfect practice makes perfect.

The more times you have been through these items in advance, the easier your job will be and the less stress and less cost (hopefully!) to the family.

 

Curt Coulombe CFP
www.123CollegeAtlanta.com