‘Investment in the future’: Credit Suisse creating a scholarship for NC HBCU students
Swiss bank Credit Suisse is launching a new scholarship for students that attend one of North Carolina’s historically Black colleges, the bank said Monday.
Credit Suisse, which has a growing presence in Research Triangle Park, said it would pledge $1.2 million to a new endowment with the United Negro College Fund (UNCF) to fund scholarships for students attending one of the state’s 10 Historically Black Colleges and Universities (HBCUs).
The fund is expected to continue in perpetuity, said Della Sabessar, Credit Suisse’s global head of diversity and inclusion, in a statement.
“We think systemic problems require systemic solutions,” Sabessar said. “The nature of the commitment reflects our intention to be in it for the long haul.”
With the scholarship, the bank joins a host of companies that have pledged money to HBCUs since the killing of George Floyd by police last year. The protests surrounding Floyd’s and other Black Americans’ deaths led to many companies promising to address their own racial disparities.
The new Credit Suisse scholarship is unique to North Carolina, where the bank employs more than 2,000 people in Research Triangle Park, mainly in technology roles.
With the bank anticipating hiring hundreds of more employees in the coming years, Sabessar said the scholarship is part of an effort to “build out our talent pipeline” in the state.
It’s also a chance to advance racial equity within the company, she said.
“More specifically, we think the nature of this commitment ... is an investment in the future of HBCU students,” Sabessar said, “by reducing financial barriers and supporting a promising pathway for their potential — one that provides more equitable access to opportunity.”
Sabessar noted the bank already has active recruiting efforts with 23 HBCUs across the country, including all 10 in North Carolina.
“We expect to continue to grow the representation of HBCU students and alumni at Credit Suisse as we embed and expand on these and other initiatives,” Sabessar said.
High student debt
According to a report by UNCF, students at HBCUs borrow student loans at higher interest rates and graduate with much higher debt than their peers at non-HBCUs. That’s despite the fact that HBCUs often cost less.
On average, that translates to Black students having $25,000 more in student loan debt than white students four years after graduating, according to the U.S. Department of Education.
And 48% of all Black graduates owe more on their federal undergraduate loans four years after graduating, compared to 17% of white students. That disparity is one of the leading causes of the debt gap between Black and white households.
The scholarship could help with students who might be unable to finish college because of the costs, said Michael L. Lomax, CEO of UNCF, in a statement.
“We know that African American communities are disproportionately impacted by the lack of resources needed to go to college,” Lomax said. “Recognizing that need, Credit Suisse is providing a pathway for successful applicants to continue on their journey to attain a college degree.”
Local investsments into HBCUs
North Carolina’s HBCUs have seen an influx of financial committments in the past year.
Last week, Apple said it would help launch a new tech education center in Atlanta that would virtually serve HBCUs. Raleigh’s St. Augustine’s University is one of the first colleges to join the initiative.
In December, MacKenzie Scott, the ex-wife of Amazon CEO Jeff Bezos, gave tens of millions of dollars to Elizabeth City State University, North Carolina A&T State University and Winston-Salem State University.
TikTok, the video sharing app, gave $1 million apiece to N.C. Central University and N.C. A&T to help people of color enter health-related or science professions. The donation was part of $10 million TikTok gave to 10 schools that serve underrepresented students, The News & Observer reported.
IBM, who like Credit Suisse has an office in RTP, said it would invest $100 million into partnerships with HBCUs, including North Carolina Central University and Fayetteville State University.
And last fall, Triangle semiconductor maker Cree made a gift of $4 million to N.C. A&T, the largest historically Black university in the country as well as the top producer of Black engineering graduates.
This story was produced with financial support from a coalition of partners led by Innovate Raleigh as part of an independent journalism fellowship program. The N&O maintains full editorial control of the work. Learn more; go to bit.ly/newsinnovate
This story was originally published January 18, 2021 at 6:00 AM with the headline "‘Investment in the future’: Credit Suisse creating a scholarship for NC HBCU students."
