Over the past several years, the Wisconsin Black Chamber of
Commerce has worked to support and strengthen businesses in the
African American community. A key part of that effort has
been cultivating tomorrow’s talent by ensuring that young people
get the 21st Century education and training that businesses require
of their employees. This is a key measure in our Youth Ambassador
Program.
But these efforts are now in danger as a result of a proposal
being floated by the Obama Administration that will in all
likelihood make it more difficult for African American students to
enroll in the universities that specialize in vocational training.
Specifically, the administration is advancing an initiative
called “gainful employment” that would require that a new,
arbitrary debt-to-income ratio test be applied only to degree
programs at career colleges and universities as a condition of
theirstudents’ eligibility for Federal loans.
The initiative would not apply to other sectors of higher
education. Career schools play a seminal role in the education of
minority students, and they would be disproportionately impacted if
the “gainful employment” proposal becomes official policy.
In 2008-09, over six times as many minority students graduated
with degrees or certificates from career colleges (236,228) as
graduated from Historically Black Colleges and Universities
(37,229). In fact, 36 percent of degrees conferred at career
colleges and universities were awarded to minorities, compared to
26 percent at public and 22 percent at private, not-for-profit
institutions. In addition, 43 percent of the approximately 3.2
million students in America who attend career schools are
minority students, and nearly half are first-generation college
students.
Removing federal financial support for students attending career
colleges and universities will significantly curtail educational
options for African American students. Compounding the situation,
the “gainful employment” rule will hurt the quality of the labor
pool available to America’s businesses given the role these
schools play in training tomorrow’s workers. It is important to
understand that minority-owned businesses are a critical growth
segment of our economy.
If this proposal is adopted, it will impede the ability of
thousands of minority and low-income students to earn a degree of
their choosing and to fulfill dreams of professional success. If
these students are unable to fulfill their dreams, there will not
be a new generation of entrepreneurs and business leaders to drive
our economy to greater vitality.
We are in complete agreement with the leadership at the National
Black Chamber of Commerce. We agree that the “gainful employment”
rule would cease Federal student loans for those matriculating
through for profit colleges. This would have a terrible impact on
our future workforce. We now find that the main instigators of this
proposal are the Wall Street short sellers. One of the short
sellers even gave a speech entitled “Sub-prime goes to College”
revealing how they are attempting to manipulate the U.S. Department
of Education.
President Obama has called for a renewed investment in higher
education to meet a new goal: five million more college graduates
by 2020. We know the value of a strong educational foundation and
know that access to a broad array of educational choices is
consistent withrealizing this critically important goal.
The “gainful employment” proposal would limit the educational
options available to students, making it harder for them to get the
tools they will need to flourish in the workforce.
Ruben Hopkins is the President/CEO of the Wisconsin Black
Chamber of Commerce, Inc.
