Student loan debt is an unfortunate commonality amongst college students. After graduation, it can take some people decades to pay off the loans, depending on their annual salary and other financial obligations. With many HBCU students having unmet financial tuition costs, a new program is offering microgrants.

Black billionaire philanthropist Robert F. Smith and his Student Freedom Initiative are partnering with Prudential Financial to launch a new program for HBCU students. The “Handling Everyday Life Problems for Students (HELPS)” Program will provide $1.8 million in microgrants students can apply for, as well as paid internships and financial literacy workshops (via Yahoo! News). 

Microgrants are offered to students in emergencies or other high-risk circumstances. According to their website, an “emergency” situation is defined as “an unexpected, one-time expense, associated with the immediate risk to health, life, property, or student’s environment that requires urgent attention to prevent worsening of the situation or further instability of the student’s situation.” Students can use the funds to pay for school supplies, essentials, and other unexpected expenses. 

Both the Student Freedom Initiative and Prudential have a shared goal to close the racial wealth gap by offering one-time expenses that disproportionately affect Black students, often leading many to drop out of college, even if they receive financial aid. “Over 75% of students at HBCUs are considered low-income, relying on Pell Grants to meet their college expenses. However, for many of these students, these grants are not enough,” said Mark A. Brown, Executive Director of Student Freedom Initiative (via Essence). 

Smith made the following statement on the HELPS Program:

“Student Freedom Initiative applauds the leadership of Prudential Financial and their support for our shared mission of eliminating barriers of access for underserved communities,” said Smith. “By enabling the launch of the HELPS Program, a vital component of our work to address the holistic needs of HBCU students and families, Prudential’s gift will provide long-needed and often overlooked aid and support persistence of those most vulnerable in our community.”

HELPS is not Smith’s first time providing financial assistance to HBCUs. In 2020, the billionaire paid off student loan debt for Morehouse students. 

Learn more about the HELPS program here.

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