By Bill DeBaun, Senior Director, Data and Strategic Initiatives
Reading time: Three minutes
A new study demonstrates that college savings accounts can increase postsecondary enrollment rates and close postsecondary enrollment gaps for underrepresented students.
These findings come from an evaluation of San Francisco’s Kindergarten to College (K2C) College Savings Program, a college savings account (CSA) initiative. The study’s treatment group included more than 1,100 San Francisco Unified School District
(SFUSD) seniors from the high school class of 2023 whose 2010-11 kindergarten cohort was automatically enrolled in a college savings account with a seed deposit of $50.
Compared to a control sample of 1,128 from the high school class of 2022, overall first fall college enrollment rates increased 6% (54% to 60%), and these gains were driven by a 12% increase (38% to 50%) for underrepresented students
(Black/ African-American, Hispanic/Latino, Filipino, Pacific Islander, or American Indian/Alaskan Native).
The enrollment data come from the National Student Clearinghouse's StudentTracker service, which allows education entities to examine their served
students’ postsecondary outcomes.
Beyond the college enrollment boost, the class of 2023 graduates comprising the treatment also had higher rates of on-time high school graduation.
CSAs operate under the hypothesis that the possession of a savings account dedicated to paying for college and small deposits of money into it can shape student and family perceptions of college-going. The K2C study notes, “Research by Elliott and Beverly
(2011) showed that having savings designated for future schooling was associated with higher rates of enrollment and reducing the incident of wilt, when a young person in high school expects to attend a college but fails to do so shortly after graduating
high school.”
The K2C program was started by then-mayor of San Francisco Gavin Newsom (D) and San Francisco Treasurer José Cisneros. Cisneros recently told KQED-FM, “You really build hopes and aspirations and dreams for children by talking to them from when they’re very young throughout their entire childhood, making sure they understand what all of the opportunities for success are when they grow up…I believe that this program, these college savings accounts, have made those conversations happen and improve the outcomes for these kids.”
KQED-FM reports, “The average savings for the class of 2023 was just over $1,400, and the program’s total savings across more than 54,000 accounts was $17 million as of May.” Additionally, “The program costs the city $25 per student per year, according
to Amanda Fried, the chief of policy and communications for the treasurer’s office. With state and philanthropic funding included, the total price per year is about $36 per child.” This makes the impact observed by the K2C study quite cost-effective
relative to other interventions. Most importantly, it starts early in a student’s educational journey and is more inclusive given its universal, automatic enrollment.
This K2C study represents important empirical evidence about the impacts of CSAs. As a movement, the CSA field has focused on increasing the methodological rigor with which this intervention is measured.
Notably, the K2C study uses an “intent-to-treat” design for the class of 2023 students comprising its treatment. The study explains, “An intent-to-treat design examines all children in cohorts assigned to receive a CSA or not based on the year of their
kindergarten enrollment, regardless of whether students did or did not receive the account.” This is important because it means that the documented impacts may be even more significant for students who had access to CSAs versus those mixed into the
sample who didn’t; for example, a student who matriculated into SFUSD after 2010-11 may not have been automatically enrolled in a college savings account but is counted among the treatment group anyway.
The National College Attainment Network (NCAN) will continue to monitor and share these important research and evaluation developments related to college savings accounts. Have questions about how your community or state can start a college savings account?
Reach out to me at debaunb@ncan.org.
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