Exclusive: More Than 250,000 NYC Students Have Access to Over $42 Million in College Scholarship Funds
The scholarship funds are in partnership with NYC Kids RISE Save for College Program.
New York City celebrated a milestone on Monday when more than 250,000 New York City elementary school students received NYC Scholarship Accounts through the NYC Kids RISE Save for College Program.
“This NYC Scholarship Month, we are thrilled to share that over a quarter-million students already have NYC Scholarship Accounts, with a cumulative $42M+ in savings. Every student deserves to pursue a bold future, one full of possibilities and opportunities, and this program is an important step toward that goal,” said NYC Schools Chancellor Melissa Aviles-Ramos.
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The NYC Kids RISE Save for College Program is a community tool New Yorkers can use to support the college and career dreams of their children, no matter their family income or immigration status. Every student enrolled in NYC public elementary schools (including participating charter schools), starting in kindergarten, automatically receives an NYC Scholarship Account invested in a NY 529 Direct Plan with an initial $100, unless they choose not to participate. Families can receive up to $175 in additional rewards for their child’s NYC Scholarship Account when they complete steps in the Program.
The program was piloted in 2017 in Community School District 30 before it expanded to include all kindergarten students in participating public schools in the 2021-2022 school year. The program was a partnership between NYC Kids RISE, the NYC Department of Education, and the city of New York, with The Gray Foundation also providing funding support.
“More than 35,000 Manhattan families are now in a position to discuss higher education options earlier, and they’ll have the tools and assets to foster kids’ dreams,” said Manhattan Borough President Mark Levine. “The Program can be a key to NYC’s post-secondary workforce readiness framework.”
The Program Defeats Financial Barriers
According to a 2018 New York University Steinhardt study, between 2006 and 2017, the percentage of NYC students who earned a high school diploma in four years and enrolled immediately in college increased from 42 to 58 percent. While some students cite reasons for not attending college such as the yearning for a gap year or opting for trade school, many cite financial struggles.
“As a mother, I know how crucial it is to set our children up to lead a financially healthy life so they can pursue their goals,” said NYC Department of Consumer and Worker Protection (DCWP) Commissioner Vilda Vera Mayuga.
In America, the average student loan debt amount ranges between $38,000 and $41,000, with nearly five percent of the loans being in default last year. Meanwhile, tuition rates for students steadily increase, with the average cost being 11,260 for in-state students at four-year universities, and 29,150 for out-of-state students.
“This important wealth-building tool is now in the hands of more than a quarter-million students, unlocking pathways to support our kids’ college and career dreams,” said Debra-Ellen Glickstein, Founding Executive Director of NYC Kids RISE. “Together, we’re affirming a future where every child knows early on that their community believes in their potential.”
Research suggests that children with a college savings account of just $1 to $500 are three times more likely to go to college and more than four times more likely to graduate than a child without an Account, however according to Education Data Initiative, only 30 percent of Americans have a college savings account.
That’s where NYC Kids RISE comes in. They hope the program will ensure that every NYC public school kindergarten student graduates high school with a financial asset for college and career training, and that students, families, schools, and communities have increased college-and career-going expectations for every child.
“I encourage families to activate their children’s NYC Scholarship Accounts today.” Ramos continues. “It’s never too early to start planning for their futures.”
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