Doubling Hispanic College Graduation Rate Would Create $13B Benefit To US Economy.

The Hispanic Scholarship Fund (HSF), the nation’s largest and most prestigious Hispanic scholarship-granting organization, released the results of the first independent study commissioned to quantify the impact of increasing the college graduation rate of U.S. Hispanics. At a conference in Washington, D.C., HSF revealed the findings of its Hispanic Education Study, which was conducted by California-based think tank RAND Corporation. The report concludes that the United States would stand to benefit from an increase of $13 billion in public revenues if the rate of Hispanic college graduates doubles from 9 percent to 18 percent.

“Meeting the educational needs of the fastest-growing population in the nation – the Latino community – is critical to the country’s future and is in the best interest of all Americans,” said Sara Martinez Tucker, president and chief executive officer of the Hispanic Scholarship Fund.

“Since we were founded 25 years ago, our vision has been to strengthen the country by increasing higher education among Hispanics. Five years ago, we adopted a mission to double the rate of Hispanics earning college degrees from 9 percent to 18 percent. We commissioned this research to explore exactly what it would take to reach this goal, as well as to identify the benefits of meeting this goal to our country. The results confirm our belief that accomplishing this mission is vital for America.”

The Hispanic Scholarship Fund study found that doubling the rate of Hispanic college graduates would create a return on investment of 400 percent. Taxpayers would reap revenue projected at $13 billion through reduced public spending and increased tax contributions among the Hispanic population. Additional benefits would impact the private sector through increased discretionary income and consumer spending.

Hispanic Education Gap Expected to Increase

According to Martinez Tucker, the importance of increasing educational attainment among the nation’s Hispanics is underscored by the recent U.S. Census 2000 data, which reports that the Hispanic population increased by more than 50 percent since 1990. In addition, one of every five new entrants to the workforce today is Hispanic, and the number and percentage are increasing.

Yet a significant education deficit exists between Hispanics and other ethnic groups. In 1998, 10 percent of Hispanics aged 25 to 29 held a bachelor’s degree, compared with 32 percent of non-Hispanic whites – the largest gap in the last 30 years. It also is estimated that the share of Hispanics among high school dropouts will double by 2010, reaching 32 percent. Hispanics are projected to be the only ethnic group to experience an increase in the number of high school dropouts between 2000 and 2010.

“Our study is the first effort to quantify what it will take to close the gap in Hispanic education,” said Martinez Tucker. “The economic benefits of achieving this goal are real and tangible, but as this report shows, it requires a solid collaboration and joint support of the public and private sectors.”
Key Findings of the Study

Additional findings of the Hispanic Scholarship Fund 2000 Hispanic Education Study include:

· College retention strategies alone cannot double the rate of Hispanic graduates. Today there are not enough Latinos entering college for college retention programs – working alone – to close the Hispanic education gap. Retention strategies must be combined with programs that increase the percentage of students who complete high school prepared for college, and who enroll in four-year institutions or community colleges.

· The Hispanic education gap will not improve without aggressive action. Two factors continue to contribute to low educational attainment among the Hispanic population: under-educated parents and low-income families. Today, two out of three Hispanic children live in a family where neither parent has a high school diploma, and one out of two Hispanic children lives in a family in the lowest income percentile. These numbers are projected to grow by more than 20 percent and 10 percent, respectively, over the next decade, unless public and private organizations make an effort to halt these trends.

Recommended Actions from Hispanic Scholarship Fund

Based on the results of the study, the Hispanic Scholarship Fund has responded by developing specific recommendations to address the needs identified. Martinez Tucker said that these actions will involve a combination of efforts on the part of HSF and other partners who are working to improve the educational attainment of Latinos. Recommended actions include three primary initiatives:

· Improving the College Graduation Rate. HSF will hold itself accountable for improving the college graduation rate of Hispanics by awarding more scholarship dollars, which has proven to be an effective, labor- and cost-efficient strategy. With a 97 percent graduation rate among its scholars, HSF has demonstrated clear leadership in this area. In addition, HSF will enlist and mobilize its natural constituencies on behalf of this mission, through on-campus scholar chapters and an active alumni network.

· Impacting the High School to College Transition Rate. HSF is committed to maintaining a formal community outreach program that includes hosting town hall meetings and celebrations of scholastic achievement, as well as creating role models and mentors for the younger generation. In addition, the organization will offer its strategic research capabilities to partner organizations, and will encourage institutions of higher learning to develop adequate capacity to meet the projected demand.

· Affecting the High School Graduation Rate. HSF will bring college expectation and college preparation to the Latino community by convening a nation of partners in education to facilitate a structure whereby colleges, school districts, education advocacy organizations, other community-based organizations, businesses and foundations can collaborate to improve educational achievement at every step in the educational pipeline. HSF also will advocate a wide-scale public awareness campaign to take educational and motivational messages directly to students and parents.

“The dynamic growth of the Hispanic population, as well as the impact this segment will have in our nation’s future economy, underscores the importance of why this challenge must be met,” said Martinez Tucker. “We believe that increasing higher education among America’s fastest growing community will be a critical factor in positively shaping the nation’s future.”

About Hispanic Scholarship Fund

HSF is the nation’s largest and most prestigious Hispanic scholarship-granting organization, with a vision to strengthen America by advancing the college education of Hispanic Americans. Since it was founded in 1975, HSF has awarded more than 45,000 scholarships totaling in excess of $58 million to Latinos from all 50 states and Puerto Rico, who have attended more than 1,300 colleges and universities.

In 1996, HSF adopted a mission to double the rate of Hispanics earning college degrees from 9 percent to 18 percent. HSF provides scholarships based on merit, with consideration of financial need, to Hispanic Americans of all races and ethnicities. A recent independent study found that 97 percent of all students selected as HSF scholars attain their college degrees, many overcoming significant social and economic barriers. In 2000, 70 percent of HSF scholars came from low-income families, and 57 percent represented the first generation in their families to attend college.