On Monday, January 27th, the “NYC Kids RISE Save for College Program” reached a significant milestone in New York City, with over 250,000 elementary school students receiving over $42 million in scholarships through the “NYC Scholarship Accounts”.
The “NYC Kids RISE Save for College Program” is aimed at low-grade public school students, providing parents with a way to save for their child’s college education early on. Regardless of income or immigration status, every student registered in a New York City public elementary school from kindergarten onwards (including charter schools participating in the program) automatically receives a scholarship account invested by the “NY 529 Direct Plan” with an initial $100 deposit. Families can earn up to an additional $175 in incentives for their child’s account by completing certain program-related steps.
The program was first piloted in Community School District 30 in 2017 and expanded to all public elementary school students in the 2021-2022 academic year. The initiative is a collaboration between the non-profit organization NYC Kids RISE, the New York City Department of Education, and the city government, with funding support from “The Gray Foundation”.
According to a study by the New York University Steinhardt School conducted in 2018, the percentage of New York City students who obtained a high school diploma within four years and immediately enrolled in college increased from 42% in 2006 to 58% in 2017. While some students opt to take a gap year or attend vocational school instead of college, many others face financial difficulties preventing them from pursuing further education.
In the United States, the average student loan debt ranges from $38,000 to $41,000, with around 5% of loans from last year remaining unpaid. Meanwhile, college tuition fees continue to rise, with the average in-state tuition at a four-year public university being approximately $11,260, and for out-of-state students, as high as $29,150.
Studies have shown that children with college savings accounts containing $1 to $500 are three times more likely to attend college and over four times more likely to graduate compared to those without accounts. However, according to data from the “Education Data Initiative”, only 30% of Americans have college savings accounts.
“I encourage families to start their child’s NYC Scholarship Account immediately,” said New York City Education Director Ramos, “Planning for the future can never start too early.”