The Student Freedom Initiative recently announced a collaboration with the Steinbridge Group as part of a $100 million commitment to HBCUs.
Announced on Wednesday, the new partnership will focus on closing the racial wealth gap by using HBCUs and other MSIs’ land and turning them into attainable housing for first responders, professors and other staff, as well as other local professionals.
As part of the collaboration, the Student Freedom Initiative, otherwise known as SFI, and Steinbridge will select certain HBCUs and MSIs, determining whether they’re eligible for the program. To receive part of the $100 million investment, the institutions’ land capability for development, ability to take on a large development project as well as their leadership will be reviewed.
“Our nation’s HBCUs and other MSIs produce 75% of Ph.D.s, 46% of the Business Executives, 50% of the Engineers, 80% of the Federal Judges, 85% of the Doctors, and 75% of the Veterinarians in African American and minority communities,” said the Founder and CEO of the Steinbridge Group, Tawan Davis, per the press release. “This collaboration with the Student Freedom Initiative will help us engage with these institutions to discuss pathways to access our $100 million capital commitment that activates their underutilized real estate and expands their economic base.”
As part of the collaboration, part of the proceeds will go towards the Student Freedom Agreement fund which provides student loans to HBCU students.
Created by CEO of equity firm Vista Equity Partners Robert F. Smith, with the agreement fund, the SFI helps address student debt as well.
Out of approximately $1.7 trillion in debt that’s owed in total by students who seek higher education nationwide, a disproportionate amount is owed by Black students who attended college.
According to the latest report by the Education Data Initiative, Black college graduates leave their schooling with an average of $25,000 more in student debt compared to their white student peers.
Black students also reported an increased struggle to repay the loans. Although they reported making monthly payments of at least $250 towards their loan, Black students still owed an increased average of 188% more debt when compared to white students, even four years after graduating.
“Many HBCU Presidents struggle with the challenge of long-term debt required to finance housing requirements that may otherwise not be readily available in their communities. This dilemma affects credit ratings, recruitment of high-quality faculty, and the entire student experience,” said the President of the SFI, Dr. Brown., per a statement. “Uniquely, the brilliance of the Steinbridge, SFI, and HBCU relationship is that the effort allows the acquisition and maintenance of the capital asset without the negative impact of long-term debt.”
