Perspectives of College Costs, Benefits, and Financial Aid Among California Latino Youth

Perspectives of College Costs, Benefits, and Financial Aid Among California Latino YouthHarry P. Pachon, Ph.D.

Maria Estela Zarate, Ph.D.

December 19, 2005 TRPI 2

Latino Youth Have Increasing Presence in California

0%

10%

20%

30%

40%

50%

60%

under 5 5-9 10-14 15-17 18-19 20-24

% of Population in California that is Latino by Age Group

Source: American Community Survey 2004

December 19, 2005 TRPI 3

Objectives of Today’s Presentation Using preliminary data we will capture

Perceptions of:

Actual College Costs Costs vs. Benefits of attending College Opportunity Costs and Hardships associated with

College Accessibility of Financial Aid Instruments

December 19, 2005 TRPI 4

Sample Overview of Preliminary Results Telephone Survey of Latino youth in California Ages 18-24 N=400* 83% U.S. Born 72% had parents born outside the U.S. 79% Completed High School Median Household Income = $25,000 - $35,000 Sample weight= 50% male, 75% respondents not in

college* Unless otherwise specified, results are for all respondents.

December 19, 2005 TRPI 5

Perceptions of Cost

1 in 6 respondents accurately estimated the costs of attending a UC campus, 1 in 7 accurately estimated costs of attending CSU, most estimated much higher costs

68% of the respondents believe few families and students can afford to pay for college

but 89% think it is common for college students

to receive financial aid

December 19, 2005 TRPI 6

Sources Financial Aid: Where is the Aid? Only 1:4 respondents mentioned

scholarships as a source of financial aid Only 1:5 respondents mentioned loans as a

source of financial aid Only 4:100 respondents mentioned work-

study as a source of financial aid

December 19, 2005 TRPI 7

(Mis)Perceptions of Access to Financial Aid

0% 10% 20% 30% 40% 50% 60%

% who said PARENTS need to be U.S. citizens in order for students to receive financial aid

% who believe STUDENTS need to be U.S. citizens to receive financial aid

December 19, 2005 TRPI 8

Sources of Loans: Where would you go to get a loan for college?

0% 10% 20% 30% 40% 50%

a commercial bank

the federal government

do NOT know

colleges and universities

December 19, 2005 TRPI 9

The Cost of Incurring Debt for College 2:5 would take a student loan to finance

college if they qualified 1:3 felt their parents would take a loan to pay

for college if they qualified 1:4 reported their parents would take out a

student loan depending on their grades or choice of major

1:6 college students use loans to help finance their college education

December 19, 2005 TRPI 10

0% 10% 20% 30% 40% 50% 60% 70%

Familiarity with Grants

% that heard of CAL Grants*

% that heard of Pell Grants*

% that know how to apply/qualify for Pell or CAL Grant*

% of college students that applied for a CAL Grant

* Refers to all respondents

December 19, 2005 TRPI 11

Financial Reasons for Not Attending College 75% of those not in college cited financial aid

as a factor in their decision not to attend college

90% of working youth not in college contribute their earnings to the household 82% would need to contribute to the household

even if they were in college

December 19, 2005 TRPI 12

The Reality of Financing College 2 of 3 college students said financial aid

played an important factor in deciding which college to attend

1 of 5 college students had no idea how they were going to pay for college when they applied to college

2 of 3 college students are currently working and 76% of them contribute their earnings to the household

December 19, 2005 TRPI 13

The FAFSA Experience for College Students

0% 20% 40% 60% 80%

% who thought the form was difficult to fill out

% whose parents have filled out the form

% who neither they nor their parents have ever filled out the form

December 19, 2005 TRPI 14

Costs and Benefits of College

2 of 3 students believe the benefits of attending college outweigh the costs

The most frequently cited benefits of college education: Having a job I like To earn more money

The most frequently cited cost of college Not being able to work Incurring too much debt

41% believe Latinos without a college degree can get better jobs than Latinas without a college degree

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