HOPE CHICAGO PRESS RELEASE: MAY 22, 2023
HOPE CHICAGO RELEASES REPORT DEMONSTRATING ECONOMIC, SOCIAL BENEFITS TO SCHOLARS AND CITY, STATE ECONOMIES
Independent economist reports every $1 invested will pay off $4.20 in economic and social benefits, validating impact of Hope Chicago’s unique two-generational model for postsecondary access and supports
CHICAGO - Hope Chicago, the two-generation scholarship program providing debt-free college and vocational support to students and their parents at five Chicago Public Schools high schools, today released an impact report demonstrating the projected economic and social benefits of its innovative model.
The study, “Hope Chicago: Social Return on Investment,” authored by City University of New York Professor Clive Belfield and Economist at the Center for Benefit-Cost Studies in Education at the University of Pennsylvania, uses publicly available data on higher education outcomes, the relationship between educational attainment and social and labor force outcomes, and peer-reviewed research on similar college success interventions, along with early results from Hope Chicago’s first cohort, to project the social and economic impact of the new organization’s robust approach to postsecondary access and support.
“I read headline after headline questioning the value of a college degree in 2023, but this report lays bare the reality that a postsecondary education dramatically changes the earning potential of Hope Scholars, and is one of the best economic investments we can possibly make in our city and state," said Hope Chicago’s Chief Executive Officer Dr. Janice K. Jackson.
Key takeaways from the report include:
Removing financial barriers is an investment in students: Prior to Hope Chicago, college enrollment rates at the five Hope Chicago partner high schools averaged 57%. In Hope Chicago’s first year, that number rose to 74%, with 670 Hope Scholars enrolling in post-secondary education or training. Nearly one-third (28%) of these students are attending a college ranked as “highly competitive.”
The Hope Chicago model is a highly efficient and impactful investment: Findings from Belfield’s report project both a high return on investment for students and the economy. Every $1 invested in the program is expected to recoup $4.20 in social and economic benefits.
The Hope Chicago model reduces the racial borrowing gap and builds generational wealth for Scholars: African American and Hispanic students would be expected to borrow $31,490 for the same college education provided debt-free by Hope Chicago, significantly above the amount white students typically borrow for the same education ($20,330). Being debt-free would close approximately one-third of the earnings gap between Hope Scholars and their white peers. It also promotes more equity in home ownership, entrepreneurship, and continued access to higher education.
Hope Chicago generates economic gains for the City and State: Relative to students in comparable Chicago high schools, Hope Chicago generates a value for the City, State and economy overall estimated between $215,000 and $364,000 for each student who pursues postsecondary education or vocational training. For the 670 Scholars who enrolled in college as part of Hope Chicago’s first cohort, this equates to an estimated $143M.
The Hope Chicago model also benefits taxpayers: Hope Scholars are projected to fuel state/City tax gains as high as $38,700 each per student. When federal funds are included, it’s as high as $112,620.
Launched just last year, Hope Chicago has already seen much success with its first cohort of scholars. With the financial barrier removed, Hope Chicago immediately saw a 30% increase in program enrollment from its 5 partner high schools. Hope Chicago has also secured partnerships with colleges and nonprofits such as Bottom Line, One Million Degrees and College Possible. Reporting from Hope Chicago’s first cohort of scholars will be available this Fall.
“After months of analysis and comparisons with hundreds of data sets, we found that the Hope Chicago model is a highly efficient and impactful one for the student – and society as a whole,” shared Professor Belfield. “In terms of ROI, every $1 invested in the program is expected to recoup more than four times that in social and economic benefits for the city and state. This includes increased individual lifetime earning potential, additional City and State tax revenues, as well as quantified social benefits, including family well-being, improved health, lesser involvement in the criminal justice system and reduced public assistance spending.”
To view the full Hope Chicago: Social Return on Investment report, visit www.hopechicago.org.
Clive Belfield Bio
Clive Belfield is a professor of Economics at Queens College, City University of New York, and Principal Economist at the Center for Benefit-Cost Studies in Education, University of Pennsylvania. He is an expert in the economics of education and has published widely on benefit-cost analysis, cost-effectiveness and education privatization. He is the author of 75+ articles and three books including, "The Price We Pay: The Economic and Social Consequences of Inadequate Education" (Brookings).
# # #