FINDING FUNDING: The Los Angeles Unified School District is considering a proposal to open college savings accounts for every student in the district.
In a district that struggles to fund textbooks for students, the idea of opening college savings accounts for every student is now afloat.
Los Angeles Unified School District board president Steve Zimmer said he envisions opening college savings accounts for all students — with a $100 starting balance, which would cost $64 million dollars for the district’s 640,000 students. Then, Zimmer says, he hopes to be able to match funds based on parent deposits.
Where are they going to find the money? No one is saying.
And divining an estimate for how much the program would cost with parental matches remains a work in progress.
Nevertheless, Zimmer says he is looking forward to seeing the program to fruition.
“I am pleased to partner with Councilmember [David] Ryu and the City of Los Angeles to explore how we can work together to begin college savings accounts for our youngest students and ensure college is a reality for all L.A. Unified students,” Zimmer told Watchdog.org. “Existing programs like those led by the Fulfillment Fund offer us the blueprint for successful long-term relationship building with our students and families.”
But the lingering questions — such as how the college savings accounts will be funded, where the additional funding will come from, and whether it’s practical to include all students regardless of family income — still hang in the air.
When Watchdog.org reached out to Zimmer repeatedly regarding possible ways of funding of the program, a staffer from Zimmer’s office replied there was no more information available at this time. Ryu, whom Zimmer credits with coming up with the idea of exploring college savings accounts, did not respond to requests for comment.
‘Pathetic benchmark’
Some education advocates insist LAUSD must focus first on ensuring students are prepared for college before figuring out how to help them pay for it.
Lance Izumi, Koret senior fellow and senior director of the Center for Education at the Pacific Research Institute, voiced disapproval over the academic bar currently set in the LAUSD district.
“LAUSD should be concerned about preparing its students for college-level work,” Izumi said. “LAUSD set a pathetic benchmark for high school graduation: a D or better in college prep courses.”
“Unless LAUSD does a better job of preparing its students for college, how meaningful is a college savings account for badly prepared students?” Izumi asked.
Larry Sand, a former teacher and head of the California Teachers Empowerment Network, concurs with Izumi.
“Before this plan goes any further, we need to know how much it will cost the taxpayer,” Sand said. “But even better than involving itself with trying to get everyone into college, LAUSD needs to do a better job of getting its students ready for college. In February, just 54 percent of LAUSD students were on track to graduate. But through the miracle of so-called ‘credit recovery classes,’ that number is now – depending on whom you believe – about 75 percent.”
The path forward
The path toward assisting low-income students may be more direct than creating a college savings account.
Audrey Dow, vice president of external affairs and operations for The Campaign for College Opportunity, says there are students from low-income backgrounds who would qualify for assistance if they filled out financial paperwork connected to federal financial aid.
According to Dow’s organization, students are 50 percent more likely to graduate college if they fill out the Free Application for Federal Student Aid and those to fill out FAFSA are 72 percent more likely to graduate once they enroll.
“We think the most important thing districts can be doing is to make sure that students are filling out their FAFSA forms,” said Dow.
“We know there are a number of students within LAUSD who do not and many of them would qualify for Pell grants, secured loans and other financial aid that would help them to go to college,” Dow added.
The resolution to create college savings accounts will be considered at an August LAUSD board meeting.