American Association of Community Colleges report: Community colleges are an education bargain

22 Feb

Going to a community college is one way to reduce the cost of college. The Lumina Foundation provides the following statistics:

◦ Forty-six percent are 25 or older, and 32 percent are at least 30 years old. The average age is 29.
◦ Fifty-eight percent are women.
◦ Twenty-nine percent have annual household incomes less than $20,000.
◦ Eighty-five percent balance studies with full-time or part-time work. More than half (54 percent) have full-time jobs.
◦ Thirty percent of those who work full time also attend classes full time (12 or more credit hours). Among students 30-39 years old, the rate climbs to 41 percent.
◦ Minority students constitute 30 percent of community college enrollments nationally, with Latino students representing the fastest-growing racial/ethnic population.
Source: The American Association of Community Colleges, based on material in the National Profile of Community Colleges:Trends & Statistics, Phillippe & Patton, 2000.

Many of those attending community college will need a variety of assistance to be successful in their academic career

Tyler Kingkade reported in the Huffington Post article, Community College Pays Off Too, Report Shows:

For every dollar a student spends on community college, they can expect a cumulative $4.80 back in higher future wages, according to a recent report.
The report, by the American Association of Community Colleges, concluded every tax dollar that goes into a community college education, yields a cumulative return of $6.80 over the course of students’ careers. Federal, state, and local governments will collect an additional $285.7 billion in higher tax receipts, and tax payers will save $19.2 billion over the course of students’ careers because their better lifestyles will lead to lower health care costs, reduced crime and lower need for safety net programs.
Community colleges served 11.6 million students in 2012, the year of data this report reviewed, representing 42 percent of the American collegiate population.
Although the report was released by a group representing community colleges, it falls in line with other recent studies showing associate’s degrees do pay off in the long run. According to an analysis by Hamilton Place Strategies, it will be “more attractive to get an associate’s degree, rather than a bachelor’s degree, in 2065,” if current cost trends continue….
The report was prepared by Economic Modeling Specialists International, and based on data from the U.S. Bureau of Labor Statistics and U.S. Census Bureau, outputs of EMSI’s Social Accounting Matrix model. http://www.huffingtonpost.com/2014/02/20/community-college-pays-off-report_n_4818845.html?utm_hp_ref=email_share

Here is the press release from the American Association of Community Colleges:

Report: The Economic Impact of Community Colleges
Community Colleges Contributed $809 Billion to Economy in 2012
The American Association of Community Colleges (AACC) released a report, “Where Value Meets Values: The Economic Impact of Community Colleges,” showing that community colleges are a boon to the American economy at large and to the individual student.
In 2012 alone, the net total impact of community colleges on the U.S. economy was $809 billion in added income, equal to 5.4 percent of GDP. Over time, the U.S. economy will see even greater economic benefits, including $285.7 billion dollars in increased tax revenue as students earn higher wages and $19.2 billion in taxpayer savings as students require fewer safety net services, experience better health, and lower rates of crime.
Students also see a significant economic benefit. For every one dollar a student spends on his or her community college education, he or she sees an ROI of $3.80.
Please access the links below to read more:
Where Value Meets Values: The Economic Impact of Community Colleges (Full Report) http://www.aacc.nche.edu/About/Documents/USA_AGG_MainReport_Final_021114.pdf
Where Value Meets Values: The Economic Impact of Community Colleges (Executive Summary) http://www.aacc.nche.edu/About/Documents/USA_AGG_ExecSum_Final_021114.pdf
Economic Impact Study Fact Sheet http://www.aacc.nche.edu/About/Documents/USA_AGG_FactSheet_Final_021114.pdf
Return on Investment: Social http://www.aacc.nche.edu/About/Documents/USA_AGG_Social_Final_021114.pdf
Return on Investment: Student http://www.aacc.nche.edu/About/Documents/USA_AGG_Student_Final_021114.pdf
Return on Investment: Taxpayer http://www.aacc.nche.edu/About/Documents/USA_AGG_Taxpayer_Final_021114.pdf
The study was compiled by Economic Modeling Specialists Intl., (EMSI). EMSI turns labor market data into useful information that helps organizations understand the connection between economies, people, and work. Read more about EMSI.

Here is a portion of the executive summary which deals with the economic impact of community colleges:

The economic impact analysis examines the impact of America’s commu¬nity colleges and their students on the national economy in 2012. Results are measured in terms of added income and are organized according to the following effects:
1. Impact of the increased productivity of former community college students employed in the U.S. workforce, and;
2. Impact of international student spending.

IMPACT OF STUDENT PRODUCTIVITY
The greatest impact of America’s community colleges results from the education and training they provide to U.S. residents. Since the colleges were established, students have studied at the colleges and entered the workforce with new skills. Today millions of former students are employed in the U.S workforce.
During the analysis year, former students of America’s community col¬leges generated $806.4 billion in added income in the U.S. economy. This figure represents the higher wages that students earned during the year,
EXECUTIVE SUMMARY
IMPACT OF STUDENT PRODUCTIVITY
The greatest impact of America’s community colleges results from the education and training they provide to U.S. residents. Since the colleges were established, students have studied at the colleges and entered the workforce with new skills. Today millions of former students are employed in the U.S workforce.
During the analysis year, former students of America’s community col¬leges generated $806.4 billion in added income in the U.S. economy. This figure represents the higher wages that students earned during the year, the increased output of the businesses that employed the students, and the multiplier effects that occurred as students and their employers spent money at other businesses.
IMPACT OF INTERNATIONAL STUDENT SPENDING
Approximately 1.3% of students attending America’s community colleges in 2012 were international students. These students paid approximately $1.2 billion to the community colleges to cover the cost of tuition, fees, books, and supplies. The colleges in turn injected these monies into the U.S. economy through their payroll and purchases. The net impact of these transactions was $1.5 billion in new income added to the U.S. economy.
The living expenses of international students also supported U.S. businesses. In 2012, international students spent $1.2 billion to purchase groceries, rent accommodation, pay for transportation, and so on. The net impact of these expenses was $1.1 billion in added income.
Altogether, international student spending added a total of $2.6 billion in income to the U.S. economy.
TOTAL IMPACT
The overall effect of America’s community colleges on the national economy in 2012 amounted to $809 billion, equal to the sum of the stu¬dent productivity effect and the international student spending effect. This added income is equal to approximately 5.4% of the nation’s Gross Domestic Product…. http://www.aacc.nche.edu/About/Documents/USA_AGG_ExecSum_Final_021114.pdf
Ashley Marchand writes in the Chronicle of Higher Education about strategies which can help community college students succeed.
In 6 Strategies Can Help Entering Community-College Students Succeed, Marchand reports:
The six benchmarks listed in the report offer staff members and administrators ideas about how to help more students stay in college and graduate or transfer. They are fostering “college readiness” programs for high-school students, connecting early with students, encouraging faculty and staff members to have high expectations for students, providing a clear academic path, engaging students in the learning process, and maintaining an academic and social-support network. http://chronicle.com/article/6-Strategies-Can-Help-Entering/64871/
In the article, Community Colleges Address Financial Barriers to Success For Low-income Students which was published in the Sacramento Bee, student challenges were addressed :
Of the close to 8 million credit students annually attending community colleges, 46% currently receive some form of financial aid (state, federal, or institutional). The additional benefits the students might access through BACC include a range of federal programs, such as those that provide health insurance, food, and child care. Such support services are especially critical for community college students, many of whom juggle work, studies, and family responsibilities. http://www.sacbee.com/2012/02/08/4248177/community-colleges-address-financial.html

Given the numbers of students attending community college and the population demographic, more must be done to help this students graduate.

Related:

Helping community college students to graduate https://drwilda.com/2012/02/08/helping-community-college-students-to-graduate/

Where information leads to Hope. © Dr. Wilda.com

Dr. Wilda says this about that ©

Blogs by Dr. Wilda:

COMMENTS FROM AN OLD FART©
http://drwildaoldfart.wordpress.com/

Dr. Wilda Reviews ©
http://drwildareviews.wordpress.com/

Dr. Wilda ©
https://drwilda.com/

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: