The Promise of Dream Accounts

In an increasingly global and competitive economy, it is essential that we inform all students about the many higher education opportunities available to them. The National Center for Education Statistics recently reported that in 2013, the immediate college enrollment rate for high school completers from high-income families (80 percent) was 31 percentage points higher than the rate for those from low-income families (49 percent). There are many barriers and challenges that low income students face as they prepare to enroll in education or training beyond high school, and it is critical that we find innovative ways to support all students as they prepare for this education and training.

We are proud to support legislation reintroduced by U.S. Senator’s Chris Coons and Marco Rubio aimed at helping low-income and at-risk students access and complete a college education. This legislation, similar to legislation introduced in 2012, encourages partnerships among schools, colleges, non-profits, and businesses to develop secure web-based student accounts that contain information about academic preparedness, financial literacy, and high-impact mentoring and would be tied to a college savings account.

Overall, the legislation would authorize the Department of Education to award three-year competitive grants to:

• Create personal online accounts for low-income students. These accounts would allow adults close to a student to monitor higher education readiness. Parents can grant access to teachers, coaches, counselors, mentors, or others who may be helpful in monitoring a student’s progress.
• Inform students about opportunities to prepare for post-secondary enrollment through identifying skills and career interests, financial literacy, and preparation for college enrollment.
• Provide college savings accounts for each student which can be accessed online and will be available to students throughout their educational careers.
• Better inform opportunities to assist high-risk students in planning for college through a comprehensive monitoring and reporting system.

Whether it is vocational school, job training, community college, or a four-year university it is essential that we provide all students with opportunities to learn about the higher education options available to them. We are hopeful that American Dream Accounts will help provide information, motivation, and support to students throughout their educational careers.