The Problem
Why Glow?
- College education can break the cycle of poverty for many young people and their families in under-resourced communities. However, too many college qualified, low income students who have worked hard fail to attend and graduate from college.
- Only 20% of low-income high school students end up getting a college degree. (Advisory Committee on Student Financial Assistance, 2002)
- What’s even more concerning is that of the low income students who are academically qualified to attend college, only 43% are likely to attain a college degree vs. 80% of high income peers. (Advisory Committee on Student Financial Assistance, 2002)
- The likelihood of attending college for low income students who get As on standardized tests is the same as high income students who get Ds. (The Bridgespan Group, 2006)
- Every year, 200,000 low income, college-capable high school students graduate and do not pursue a college education. (College Summit)
- Over this decade, of the college qualified, low-and moderate-income students, 4.4 million students will not enroll in a four-year college and 2 million students will not attend any college due to financial barriers. (Advisory Committee on Student Financial Assistance, 2002)
- College-attainment rates are rising in almost every industrialized or post-industrial country in the world, except for the U.S. At current college graduate production rates, there will be a shortage of 16 million college-educated adults in the American workforce by 2025. (Lumina Foundation,
- Typical college graduates are likely to earn over 60% more income and pay over 80% more in taxes than high school graduates (College Board, 2005)
- The financial barrier in college education for low income students is not just about money, but also about having adequate financial skills and access to information.
- The lack of basic financial literacy skills prevent the students from being able to adequately plan, evaluate, and pursue college financing options. For example, many low income students are frightened by loans and would opt not to go to college rather than incur debt.
- The lack of awareness of financial aid options reinforces the problem of affordability largely influenced by the fact that most low income students come from families/communities where no one else went to college. 50~75% of low-income students do not apply for aid or loans and/or do not attend financial aid information sessions. (The Bridgespan Group, 2006)
- Furthermore, increasing “unmet need” in college financing driven by rising college tuition and a shortage of need-based grants prevent even the most committed students from pursuing college attendance, often after being admitted to their dream colleges.
- (The “unmet need” refers to the gap in financing of college cost after expected family contribution and financial aids including work study and loans.)
- Average unmet need for low income families (<$25,000 income) in attending four-year public schools was estimated at $3,800 in 1999 and has been increasing. (Advisory Committee on Student Financial Assistance, 2002)
- When students do enroll, excessive workload and unmanageable debt levels often lead to drop-outs and financial risks. Total work and loan burden for low income families is estimated at over $8,000 per year for public 4 year colleges, nearly one third of the family income. (Advisory Committee on Student Financial Assistance, 2002)
Glow Foundation was founded in 2006 to address the financial barriers that high potential, low income students face in attending and completing college. Glow aims to solve these systematic problem of financial barriers for college for qualified and motivated, low income students with an integrated, scalable program solution consisting of: Financial Education, Mentoring, and “Unmet Need” Scholarships. Our solution empowers students to proactively seek and obtain funding for college with financial education and mentoring, and then helps students to close the last dollar gap with unmet need scholarships. (More about our solutions)
Filling the Gap in Existing Solutions
While there are many programs in place currently to support low income high school students, there exists a gap in helping these students overcome financial barriers to attend college.
- Many high school focused non-profit organizations working with low income students lack the resources and programmatic focus to provide financial education and college financial aid to their students. As a result, many of the high potential students after graduating from these programs fail to attend or graduate from college (often after being “admitted” to one). Also, most of the students enter adulthood without adequate financial literacy skills to make informed financial decisions.
- Comprehensive college preparation programs are limited in their reach of students due to their high touch, high cost nature of the programs, and financial education is not part of their core curriculum.
- Most scholarship programs targeted at low income stu dents are concentrated on “top students”. High potential students with decent GPAs often find themselves falling through the cracks, struggling to bridge the “unmet need” between the full price of college and the combination of any financial aid that may qualify and their family’s expected contributions.
- Early college and financial aid awareness programs typically are one-off events lacking continuous support and mentorship required to see the result through. Also, while helping to create the “awareness”, they do not necessarily help fill the gap in funding sources.
- Many financial education programs provided by schools, banks, and some non-profit organizations lack the tailored curriculum, mentorship, and incentives for students preparing for college financing.
Glow seeks to fill this gap in the sector through our unique solution and partnership model. (More about our Partnership Model)