According to reports by the AJC, Morehouse College has made the tough decision to furlough some faculty and staff, as they make tough budget cuts due to lower enrollment.
The enrollment is about 125 students less this year than in normal years and most of that is being blamed on new loan standards the U.S. Department of Education has put in place. More and more students and parents are being denied loans for school, because of the tougher regulations that are supposed to help, "protect taxpayer money and prevent people from accumulating debt they can’t afford," according to the AJC.
A noble concept, but the unintended consequence of not giving out loans to those who have had foreclosures, defaults, bankruptcies, tax liens or wage garnishments within the past five years, is that fewer students are able to get the money necessary to go to school. The economy has been in recession for a large number of Black families since 9/11, and the number of folks with foreclosures, bankruptcies has skyrocketed and are now being hurt by these tough new standards.
Other schools in the AUC have seen enrollment numbers decline as well, with Clark Atlanta University hit the hardest. CAU has 440 less students this Fall, which has forced them to cancel all travel and other spending while forming and Enrollment Crisis Committee. Spelman saw a slight drop in enrollment, down 12 students, but they also gave out more scholarships this year to students that were denied loans. No budget changes are expected this year at Spelman.
During this school year, Morehouse will most likely increase fundraising efforts so that forthcoming cuts are as minimal as possible. According to the AJC, to cut spending the college plans “no more than five furlough days,” and most faculty and managers will take their days during spring break while other staff spread their days throughout the budget year.