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

1. Perspectives of College Costs, Benefits, and Financial Aid Among California Latino Youth Harry P. Pachon, Ph.D. Maria Estela Zarate, Ph.D.

2. Latino Youth Have Increasing Presence in California Source: American Community Survey 2004 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 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. 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 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 TRPI

7. (Mis)Perceptions of Access to Financial Aid % 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 TRPI

8. Sources of Loans: Where would you go to get a loan for college? a commercial bank the federal government colleges and universities do NOT know 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 TRPI

10. 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 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 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 TRPI

13. The FAFSA Experience for College Students % 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 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 TRPI

15. www.trpi.org