Graduates from HBCUs see higher median salaries than other Black graduates, according to a Forbes report. HBCU graduates were found to make $14.8 billion per year in economic impact and earn nearly another million dollars over their lifetime because of where they graduated from.
According to data from OnlineU, Black alumni from HBCUs earn more than other Black graduates in their state. At the top of the list of HBCUs with highest financial payoff is Xavier University of Louisiana. OnlineU found they have a median salary estimate of $52,582 in comparison to the salary for other graduates which rests at $36,962.
More on OnlineU’s report from Forbes:
Coming in at number two on the list is Spelman College, an all-women’s school in Atlanta. The earnings from Spelman grads is $9,000 above the Georgia median for Black graduates and $8,000 above what other women with the same degree earn in the state, according to the report.
Rounding out the top three is Hampton University, where alumnae earn a median of $47,197, compared to the state of Virginia’s median salary of $43,180. It also has a higher completion rate than many other schools at 58% and Business majors also tend to earn higher median salaries compared to graduates from other colleges.
A number of factors contribute to these findings. OnlineU found the tuition costs, economic makeup of the student body, acceptance rates and loan default rates were necessary in judging a college’s value.
Additionally, OnlineU found the ways HBCUs financially support their low income students, through scholarships or Pell Grants, have helped their students graduate to higher income brackets. However, Forbes reported this was the very area where HBCUs fall short.
HBCUs have a greater number of students with unmet financial needs because of their share of low-income students, reported Forbes. Student loans were reported to be the greatest financial strain with 80 percent of students graduating with loan debt.
The cost of higher education in general creates a setback for some Black students. Though if they graduate to a higher tax bracket when they receive their diplomas, they may have a better shot at erasing their debt.