The Student Freedom Initiative (SFI), an organization that provides science, technology, engineering and mathematics (STEM) majors income-contingent funding in lieu of traditional college loans that have long wreaked havoc on their financial futures, launched today on nine HBCU campuses across the country.
The inaugural list of institutions includes: Claflin University, Clark Atlanta University, Florida A&M University, Hampton University, Morehouse College, Prairie View A&M University, Tougaloo College, Tuskegee University, and Xavier University of Louisiana.
Inspired by the 2019 gift by Robert F. Smith to Morehouse College graduates that erased 100 percent of student loan debt for them and their parents, the Student Freedom Initiative was created by Smith to further alleviate the longstanding financial burdens Black students face, disproportionate to their white counterparts.
“Through the Student Freedom Initiative, we hope to give Black students access to the education they need to move forward in this economy without the burden of student loan debt stopping them from realizing their fullest potential,” said Robert F. Smith, Chairman of the Student Freedom Initiative. “While our community continues to face inequities that too often bar young students of color from accessing quality higher education, the Student Freedom Initiative aims to empower our students with the tools they need to control their financial futures.”
On average, Black students who graduate with bachelor’s degrees accrue $7,400 more in debt than their white peers. This gap only widens across the gender divide, with Black women carrying roughly 20 percent more student debt than white women, owing an estimated $41,466 in undergraduate loans compared to the $33,851 white women owe.
To address the unequal financial burden faced by these students, the Student Freedom Initiative created its Student Freedom Agreement, an income-contingent funding agreement based on a ‘pay it forward’ concept, meaning payments are only made when the individual is working. SFI has begun dispersing Student Freedom Agreement funds to eligible junior and senior STEM majors attending one of its nine inaugural partner schools.
HBCU students have traditionally been more likely than non-HBCU students to turn to Parent PLUS or private loans for additional funding to cover remaining costs for their education. On average, 63 percent of students at HBCUs rely on Parent Plus loans. The resulting default rate is five times as high in the Black community when compared to their white counterparts, and the average debt is twice as high in the Black community as long as four years after graduation.
“We are taking a holistic approach to support and empower our students,” notes Mark Brown, Executive Director of the Student Freedom Initiative. “Not only are we providing our students financing to pursue their education, but the Student Freedom Initiative is also providing them with career development opportunities established through partnerships with Fortune 100 companies. Eligible students receive paid internship opportunities during their college careers to prepare them for post-graduate life. We’re betting on them that given the right investment, these students will go out and do well.”
Additionally, with the help of tech partners including Cisco and AVC Technologies, the Student Freedom Initiative is also visiting HBCU campuses throughout the 2021-22 academic year to provide free mission critical technology infrastructure upgrades. SFI and its partners will work directly with HBCUs to identify gaps between their existing infrastructure and the requirements identified by the Department of Education Federal Student Aid (FSA) program and install the necessary solutions to address these gaps and become cybersecure. To date, over 22 HBCUs have signed agreements to achieve campus cyber security through infrastructure upgrades, with additional schools signing up daily.
Together with Cisco’s contribution of $150 million, the Student Freedom Initiative has received over $250 million in pledges, including a generous contribution from the Walmart Foundation as part of its first round of grants for The Walmart.org Center for Racial Equity, and support from the United Negro College Fund. In addition, the program has been acknowledged and supported by the Business Roundtable’s Racial Equity & Justice Subcommittee on Education.
About Student Freedom Initiative
The Student Freedom Initiative (SFI) is a 501(c)(3) nonprofit organization dedicated to ensuring freedom in professional and life choices for junior and senior students pursuing science, technology, engineering, and mathematics (STEM) degrees. Initially focused on Historically Black Colleges and Universities (HBCUs), SFI is a student-centered, evidence-based, and holistic initiative featuring four transformative components: (1) an income contingent alternative to fixed payment obligations used to finance college, (2) immersive work experiences through paid internships (3) executive mentoring, tutoring, and other student services and (4) mission-critical technology infrastructure upgrades at participating HBCUs. SFI collaborates with community-based organizations, businesses and governmental entities through public-private partnerships to make sustainable, systemic changes to support the entire HBCU ecosystem.
SOURCE Student Freedom Initiative