Howard University’s new financial crisis affecting students’ financial aid Department of Education has downgraded school’s ability to borrow money
Howard University has joined a new watch list of schools, and it’s not for illustrious reasons. The Department of Education added the prestigious historically black university to the Federal Heightened Cash Monitoring (HCM2) list. The schools on this list are in severe financial trouble. Howard is the most prestigious among them.
What does this mean?
- The school won’t be able to award financial aid to students in advance. Instead, it will have to front the money and seek reimbursement from the federal government.
- More than $31 million will be affected.
It’s only been six months since we’ve heard about Howard’s financial issues and the takeover of the administration building for nine days. A financial aid mismanagement scandal and a bunch of Tyrone Hankerson memes and Apple Music playlist rocked the Howard community for weeks.
This latest news about the university has yet to reach most of the students. Some, like junior transfer student Amber Tucker, were totally shocked.
“I’m just now hearing about this! This is ridiculous,” she said.
Others were exasperated.
“It is very embarrassing to know that Howard University, a prestigious school, is placed on a list with hair salons in Kentucky for misappropriating funds. It sounds like the university needed to submit documentation to keep us off the list, and they didn’t care to be prompt in their doing so. Over $31 million is being held because Howard and the president basically did not care about the school and the students,” said senior accounting major Zaneika McNeil.
Howard’s student association president Amos Jackson was disappointed by the news but does not want it to obscure the school’s successes and excellence.
“I am disappointed to see our name on the list. However, I believe this will encourage our institution, even more, to hold ourselves accountable to be able to carry out our mission as an institution. I hope The Washington Post and other news outlets cover the continued success of Howard University as they do for our struggles,” said Jackson.
University president Wayne A.I. Frederick responded by highlighting the university’s efforts to increase accountability. In a letter to the school community, he said, in part:
“Over the past year, Howard University has made significant reforms as well as strengthened both the oversight and accountability within the Office of Financial Aid. The University will continue to partner with Financial Aid Services, and work closely with the Department of Education to ensure Howard students receive best in class service in the administration of Financial Aid. It is important to note that we are taking all necessary measures to avoid any adverse impact on students in the processing of aid and receipt of funds. The entire cabinet and I remain focused on ensuring Howard’s future remains bright and the institution is led with transparency and accountability.”