ATLANTA (AP) — A Morehouse College official says the school is planning to make budget cuts after a drop in enrollment.
The Atlanta Journal-Constitution reports that the historically black college will furlough faculty and staff and make other budget cuts stemming from the decrease in enrollment.
Interim provost Willis Sheftall said the Atlanta college is teaching 2,360 students — about 125 fewer than projected. Sheftall attributed the drop to the sluggish economy and changes to a federal loan program.
The U.S. Department of Education says tighter regulations protect taxpayer money and prevent people from accumulating debt they can’t afford.
According to the AJC, colleges across the country have reported an increase in loan denials after the U.S. Department of Education tightened standards for the Parent Loan for Undergraduate Students. Prospective borrowers can’t have any defaults, foreclosures, bankruptcies, tax liens or wage garnishments with the past five years.
Unlike other federal loans there is no cap for this program and parents can borrow enough money to pay the full cost for their children to attend college. Nearly 1 million families borrowed more than $10 billion last year.
Other nearby colleges such as Clark Atlanta University and Spelman College also say enrollment dropped due to the new rules.