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Hispanic Household Income Hsis and Bad Loans by <b>Gustavo A. Mellander</b>

Hispanic Community July 2017 PREMIUM
There is some good news about Hispanic reality in this country and some lingering bad news. So I begin.

Sometimes observers forget that one of the major reasons Hispanics pursue education is to improve their economic opportunities. In that they are virtually identical to all immigrants and all native born persons. Parents have long been strong supporters of encouraging as much education as possible for their children. 

Invariably, it is a wise choice for all. Clearly for the vast majority of individuals more education has provided more professional opportunities.

But in the past decade or so, we have also seen college-trained individuals unable to secure suitable employment. Fortunately, they were the exception, and more importantly, that trend has turned. All of this has been true for the general population. But how have Hispanics fared? 

Household Income

According to the reputable Pew Foundation, Hispanic/Latino household income improved in 2015 after several years of economic stagnation.

Hispanic median household income was $45,148 in 2015. That represents an increase of 6.1 percent over 2014 data, $42,540.

That compares with median household income increases of 4.4 percent for non-Hispanic whites, 4.1 percent for blacks and 3.7 percent for Asians. 

Yet in spite of their healthy increases, Hispanics still trail non-Hispanic whites at $62,950 and Asians at $77,166. A common denominator in all these subsets was level of education.

As to be expected, Hispanic poverty rate declined as their household incomes rose. To be precise, the Hispanic poverty rate fell to 21.4 percent in 2015, down from 23.6 percent in 2014. Non-Hispanic whites (9.1 percent) and Asians (11.4 percent) had far lower poverty rates than Hispanics in 2015, while that of blacks (24.1 percent) was slightly higher. 

I know, a lot of data. A quick summary: Hispanic income is on the rise but still lags behind other population cohorts. 

 

Census data

A review of U.S. Census data reveals that more Hispanics than ever before are college graduates and employed in worthy professions. Further, in every year for over a decade more Hispanics have enrolled in college than in the previous year.  

It is also reported that Latinos as a whole are optimistic about their future and remain committed to education. 

They are positive about the economic upward mobility they expect their children to achieve. Roughly three-in-four Latinos in 2015, 72 percent, said their children will be better off financially than they themselves have been. Only five percent feared their children will be less well off in their lifetimes than they were.

 

Hispanic Serving Institutions

To be designated a Hispanic Serving Institution, HSI, higher education institutions must have 25 percent Hispanics in their student body. After struggling, being ignored and underfunded for decades, these colleges that serve significant numbers of Hispanic students were finally recognized, if not fully accepted, some 20 years ago.   

Today, they form a significant part of America’s higher education system. 

A recent report by Excelencia in Education, the national research organization, provides further evidence of Hispanic participation and successes in education. 

Today, HSIs represent 14 percent of all colleges and universities and enroll 64 percent of all Hispanic undergraduates in the United States. 

They number 472 institutions, continue to grow and added 37 new members in 2016. Located in 19 states, mostly in the West, 81 percent, HSIs also exist in such unexpected states as Kansas, Indiana and Tennessee—an indication of how widespread Hispanic populations exist throughout the nation. 

Most HSIs are public institutions, 66 percent, two-year colleges' account for 49 percent and 51 percent are four-year institutions. An impressive 46 percent of HSIs students are Hispanics. 

 Graduate education is offered at 189 HSIs, which is a full 40 percent of all HSIs. 

Their success record in helping hundreds of thousands succeed in higher education is well documented. All the more impressive since most students are the first in their families to attend college. 

One cannot help but be grateful to all who have made these pathways available to young, and not so young, Hispanics. 

 

Unpaid Loans

Before we celebrate too much, we cannot forget that thousands of well-meaning Hispanics are burdened with enormous student loan debt. 

Many were targeted by unethical profiteers, enrolled in questionable programs that sounded good in the sales presentation but have not led to meaningful employment. 

Some institutions targeted veterans and low income students both with financial aid eligibility. Once that was consumed, hefty loans were tacked on.  Thousands were duped and are now saddled with credit busting loan obligations. The government and the accreditation associations were too slow in highlighting and correcting the fraud. 

Even today, I don’t see this issue receiving the attention it deserves. I don’t like one possible solution: forgive all loans—which everybody else would have to pay.  But we must help the innocent people who were so drastically misled. They lost time, money, had their dreams and their initiative crushed.  

I frankly think those who acted in such reprehensible fashions should be persecuted.  For what?  Well, I suggest malfeasance, at the very least. There’s also purposeful deceit, securing funds under false pretenses and outright corrupt dishonesty for sure in many cases, to name a few other categories. 

I know some institutions have been closed down but have the perpetrators been prosecuted? Maybe an enterprising law professor could shed light on the issue by unleashing one of his classes on this issue as a class assignment.

Not only should we slay the dragon, but we must go one step further and assure ourselves these abuses will not be repeated in the future. 

 

Bottom line

There is much to be optimistic about Hispanic education and its attendant beneficial consequences in this country. Great strides have been made. 

More Hispanics are graduating from high school, attending and graduating from college than ever before. Among the many benefits acquired has been entry into solid middle class professions. 

Subsequent ramifications on their lives and on their families are clear to all. They also stand as reachable goals for hundreds of thousands others. •

 

Dr. Mellander was a university dean for 15 years and a college president for 20

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