March 24, 2000

13 Black Colleges Get Waivers on Rule Covering Loan-Default Rates

By JEFFREY SELINGO

The Education Department announced last week that it would allow 13 historically black colleges to continue receiving federal student aid, in spite of their students' high default rates in repaying loans.

Federal law allows the department to bar from federal student-aid programs any colleges with default rates of 25 percent or more over a three-year period. An exemption that had shielded black colleges from such a penalty expired last July, but the law allows

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