Evidence supporting the link between savings and college success is growing. Recent studies out of the Center for Social Development (CSD) at the George Warren Brown School of Social Work offer a connection between assets and college enrollment and completion.
“This research underscores the importance of policies and programs that help Americans of all income levels to save for college,” says Margaret Clancy, policy director and College Savings Initiative director at CSD. “That’s why the College Savings Initiative includes innovative public policy and reforms to 529 college savings plans. The goal is to increase post-secondary education access and completion rates, particularly among lower-income students.”
CSD researchers have found that among youth who expected to graduate from a four-year college, those with a savings account in their name were approximately six times more likely to attend college than those with no account.
Arne Duncan, U.S. secretary of education, recently cited this study when announcing a new partnership with the Federal Deposit Insurance Company and the National Credit Union Association to improve financial education, savings and college access for low- and moderate-income students.