In late January 2024, the well-respected New York Times included a Sunday supplement devoted to “How Do I Pay for College And Is It Worth It?” But the Public Policy Institute of California was one step ahead when it issued its research paper “Is College Worth It?” over a year before in March 2023, written by a quartet of research fellows including Marisol Cuellar Mejia. 

Its report makes the case that funding a college education is money well-spent for life because: 1) College graduates get higher-quality jobs, 2) College graduates fare better during a recession, and 3) Finishing a degree is important to earning higher salaries.  Yet, it acknowledged that colleges are more expensive than ever. It also says that public college graduates carry less debt than those who attend private colleges.

But the NY Times wasn’t discouraging anyone from applying to college and pursuing their dreams, including bright, talented Latinos, minorities and other students. It was just laying out how complex it is to pay for college, navigate the financial forms, and combine grants, financial aid, and work-study to pay for a college education, while keeping debt to a minimum. In fact, the cost of tuition, room and board, and books averages $36,000 a year in the U.S.

The study also noted that in California about three-quarters of all parents worry about being able to afford a college education for their children. But it also pointed out that college graduates in 2021 earned 62% more than those with a high school diploma.

Here’s what research fellow Mejia said about how Latinos attending college can best finance their post-secondary education, whether for two-year or four-year colleges. Mejia, who is based in Sacramento, California, and is of Colombian heritage, has been with the Public Policy Institute for California for 15 years and has a master’s degree from the University of California-Davis.

HO: In your study “Is College Worth It?” you answer that question with a resounding yes. Why is it so critical that talented Latinos and others attend and graduate from college despite the cost?

Mejia: Research shows getting a bachelor’s degree gives you the best chances of economic prosperity. The median wage for a college graduate is $81,000 a year in California, but only 12% of the students who have a high school diploma can get to that wage point. You hear anecdotal evidence of people earning millions with a high school diploma, but they are very few.

H.O.: How does having a college degree lead to a more productive life and earning more income over the course of one’s life?

Mejia: You not only have higher wages, but labor markets are better. With a bachelor’s degree, you’re more likely to be employed and more likely to get a full-time job with retirement benefits, health insurance, paid leave and flexible schedules.The people who benefited the most from remote workers were people with at least a bachelor’s degree.

H.O.: But private colleges in California cost $68,000 a year for undergraduates including room and board, books and fees whereas public college like University of California and California State University (CSU) cost $35,000 per year. So what’s your advice with regard to public versus private college?

Mejia: Public colleges receive state funds that help keep tuition down. In California the public colleges system is so good that they can compete with private schools. In other places, private college may be considered of better quality.

H.O.: For everyone or most students?

Mejia: If you have the money, and, for certain majors, private colleges may be preferable.

H.O.: Your study also noted that many students delay graduating within four years. Why is that a trap?

Mejia: The cost of attending college increases year by year. If you go more than four years, including room and board, costs will likely rise. The biggest problem is students who don’t finish.  If you only have one year of college, the labor market won’t give you a premium and you won’t earn  higher wages and you may still have to pay off student loans.

H.O.: Many students start college and drop-out before earning a degree. What are the key factors?

Mejia: In many cases, life gets in the way including having to work because they can’t afford the cost of college. Even with some students who receive financial aid, some can’t afford it and have to find a job that pays better. But those students are not evaluating the long-term future or gain.

H.O.: And California community colleges cost on average $25,000 a year. Why does it make sense for many students to start there?

Mejia: Many California community college students start there for two years and then transfer into four-year public colleges. That’s part of California’s Master Plan. Community colleges cost less money, and often you can live at home, so it’s more cost-effective. Some students face problems transferring because credits aren’t accepted. And staying close to home works for many Latino students, if they have to take care of their parents or have to work.

H.O.: At public colleges, the report cited that housing plays a major role in rising fees and account for 56% of the overall cost of attendance. What can students do to reduce housing costs?

Mejia: We suggest that financial aid should cover not just tuition but also associate costs like room and board and the entire cost of college.

H.O.: The study cites that few undergraduates pay the full “sticker price,” especially for lower-income students. Why is that?

Mejia: Many low-income students receive institutional grants or financial aid so they don’t have to pay the full cost.

H.O.: Major tips you can offer to obtain grants?

Mejia: In California now, all high school students are required to visit FAFSA (Free Application for Federal Student Aid or http; fafsa.gov), which will make applying for financial aid easier. In the 2021-2022 State Budget Act, the State of California adopted a new requirement that starting in the 2022-2023 academic year, local education agencies, including charter schools, will be required to confirm that all high school seniors have completed a FAFSA or a CADAA (California Dream Act Application), expanding access to financial aid to thousands of students, who may have otherwise not been aware of this opportunity.

H.O.: Any other tips?

Mejia: If students go to the University of California websites, there are pages for financial aid to obtain information on Cal grants and federal Pell Grants, which are earmarked for lower-income students. Not all money offered for financial aid is given away because some students don’t take advantage of FAFSA. It’s much simpler and less complicated than it used to be.Also don’t be lured in by for-profit colleges that have very low graduation rates.

H.O.: Putting all of this together, what does it take for a talented Latino student to graduate from college and forge a satisfying career?

Mejia: First and foremost, look for as much information as possible about financial aid. There’s a lot of variation around majors, so think about what major you want to pursue and what it will mean for your future income, though college isn’t all about money. Also consider what the labor market in that major will be like when you graduate. College isn’t the end game; it’s a tool that will help you get the type of life or job you want. It’s likely that higher earnings will happen later in life.