Billions in “Remittances” Sent Back Home—Could They Cover Tuition?

If all the Hispanic students suddenly enrolled in college tomorrow, they would likely outpace enrollment for nearly every other population of student. There would also likely be economic disasters in more than one Latin American country.

Hispanic students comprise the largest group not enrolling in college. This lackluster claim to fame fuels all kinds of debate among higher education experts—especially elusive: Why?

Hispanic student statistics on high school graduation and college enrollment (2002):

• 52% graduate high school (outside GED; compare to 78% white students).
• 20% graduate prepared for college (compare to 40% white students).

Leading factors suggested for low Hispanic enrollment include:

• Low test scores and GPAs.
• Family and job responsibilities
• Language barriers
• Lack of proper college preparation/guidance
• Poverty

Education experts—mostly middle to upper income whites—tend to explain the low college enrollment rate with very canned symptoms. Most of these bypass (read “ignore”) a much more profound and primal cultural priority—family remittances.

Aid Sent Home Rivals Revenue of Top Corporations

Doubt the meaning of family remittances? Millions of Hispanic immigrants working in this country send money back home to impoverished family members. According to some reports the value of money sent from the U.S. each year to relatives in countries such as “Mexico, Brazil and Colombia,” is nothing short of crucial foreign aid, which (alarmingly) exceeds the aid provided by the U.S. By 2010 the estimated amount of remittances annually is expected to reach $100 million, the biggest chunk of it going to Mexico.

“Remittances have benefits at all levels of Latin American economies - virtually keeping some poorer countries afloat.” (BBC)

Does Remittance Equal Dollar Value of College Tuition?

Does this mean that if the U.S. provided ample economic support to poverty-stricken Latin American countries that maybe Hispanic families could use their money to put children in college? One report says that of those Hispanic families that send money back home most send “between $100 and $200 per month.” Simple math puts this between $1200 and $2400 a year, the latter close to the cost for community college tuition, according to the national average ($2,272, College Board).

Why not just take out student loans? Another oft-ignored cultural anomaly is the perception of debt among most Hispanics. A recent survey of students’ perceptions of financial aid and debt showed that Hispanic students thought college not really worth the value and considered loss of jobs and debt high costs to pay for a college education.

Western Union’s Corporate Influence Could Sway Education Attitudes

As far as remittances go, senders rely on wire services, such as Western Union, one of the larger services. The billions of dollars that criss cross the globe everyday may also be symbolic of the fees attached to such services. A few years ago, Western Union could charge $9 for a wire transfer—which would add up to another formidable chunk of change taken from pockets that could use it for education—once again. But business is business and competitors have crashed the high fees. Now transfers cost more like $3.

WU’s Corporate Responsibility website advertises its projects in countries such as Mexico where it supports a “sustainable job” program. In the U.S. WU participates in the JAG program (Jobs for America’s Graduates, Inc.)—a high school literacy program. And the company sponsors educational scholarships, (although I fail to find a link to an application or any detailed information). Companies such as this possess huge potential to influence their customers.

Tide Will Turn

Evidence points to changes in Hispanic college enrollment regardless of continued debate, and regardless of continued challenges: studies show Hispanic students are the largest population to attend large urban high schools, which typically denotes disadvantaged, at best. Statistics continue to show active gains in Hispanic college enrollment, the most rapid growth of all ethnic groups: enrollment has increased by 68%, with significant change for the better at four-year institutions.

Change takes time. No one is able to automatically shift cultural beliefs and norms, though we like to believe we can. The practice of family remittances proves a deep loyalty, drive, and hard-working ethic. Imagine such priorities divided equally between family and education.