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ExpectMore.govExpectMore.gov home pageEXPECT FEDERAL PROGRAMS TO PERFORM WELL, AND BETTER EVERY YEAR.
 
Program Assessment

Program

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Historically Black College and University Capital Financing

The program provides Historically Black Colleges and Universities (HBCUs) with low-cost infrastructure loans. The Department of Education can guarantee up to $375 million in loans and interest to HBCUs. Five percent of all loans go into a pooled escrow account from which default payments can be made.

Rating

What This Rating Means

NOT PERFORMING
Results Not Demonstrated

A rating of Results Not Demonstrated (RND) indicates that a program has not been able to develop acceptable performance goals or collect data to determine whether it is performing.
  • The program's purpose is clear and it addresses an existing need, but the program has major flaws. HBCUs have a greater financial need than other institutions because of their small enrollments, low endowments and other fiscal and facility deficiencies. However, this program's viability is hampered by problems with its escrow account, contractor fee structure, and loan package inflexibility.
  • The program has performance measures, but has not collected data or set targets yet.. The outcome measures track the long-term change in institutions' total revenues, investment return and the cumulative change in credit worthiness.
  • The program compares favorably to others and has some evaluation evidence that shows a positive impact. The lifetime loan default rate for the program is only 6.7 percent, which compares favorably to other high risk lending programs. Preliminary results from a December 2007 evaluation show that the program provides HBCUs with more affordable loans than they would have gotten on the open market.

Improvement Plan

About Improvement Plans

We are taking the following actions to improve the performance of the program:

  • Pursuing legislative fixes to address key programmatic flaws.
  • Developing oversight systems to strengthen contractor accountability and promoting a high level of performance throughout the entire life of the program.
  • Reviewing performance measures with the program's Board of Advisors and key stakeholders and establishing appropriate targets for performance measures.

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