Latino Students are Key to Our Nation’s Prosperity

By: Lily Cuellarsola & Cassandra Arroyo, Excelencia in Education

Increasing Latino degree attainment is key to our nation’s prosperity. Latinos currently represent about one in five Americans, and their population continues to grow. This growth has led to a substantial increase in our nation’s overall degree attainment and the number of new workers entering the workforce. In 2021, Latino students represented nearly 80% of our nation’s growth in degree attainment and by 2031, Latinos will make up 91% of the new workforce. As our country moves forward as a knowledge-based economy, it is crucial that our future workforce, Latinos, are well-educated. A clear profile of Latino students in post-secondary education and the institutions where they enroll is needed to inform and compel action to advance their educational success.

Who are Latino students?

Latino students represent the growing majority of college students today– a post-traditional student profile. However, too often a traditional profile of students, which represents a shrinking number, dominates policy and planning discussions. For example, Latino students are more likely than their White peers to be the first in their family to attend college, enroll part-time or mix their enrollment, and work while enrolled. As post-traditional students, Latinos need to balance life circumstances, work, and their education. To intentionally serve Latino students, institutions and decision-makers need to understand their profile:¹

• Latinos are more likely to be first-generation college students than other racial/ethnic groups. Over half of Latinos (51%) were the first in their family to attend college, compared to African American (38%), Asian (30%), and White (22%) students (see Figure 1).
• Latino students are more likely to enroll part-time or mix their enrollment than be enrolled full-time. Nearly 54% of Latino students enrolled part-time or mixed their enrollment while 46% enrolled full-time.
• Most Latino students work while enrolled. Over 80% of Latino students worked 20 hours or more a week to finance their education. About 34% of Latino students worked 40 hours or more, 22% worked 30 to 39 hours, 25% worked 20–29 hours, and 19% worked 1 to 19 hours per week.

Figure 1.

Source: Excelencia in Education analysis of U.S. Department of Education, National Center for Education Statistics, 2019–20 National Postsecondary Student Aid Study (NPSAS:20)

How Latinos Pay for College

The rising cost of college heavily impacts low-income students. Latino students are disproportionately low-income, demonstrate high financial need, and are making pragmatic choices to pay for a college education. As Latinos are one of the fastest-growing racial/ethnic groups in postsecondary education, consider the following:²

• Not all Latino students who apply for financial aid receive aid. Almost three-quarters (74%) of Latino students applied for financial aid. However, a smaller percentage of Latinos received some form of financial aid in the 2019–20 academic year — 72%.
• Latino students are more likely to receive federal grant aid than to accept federal loans. Almost half (47%) of all Latino students received federal grants and about 30% accepted federal loans (see Figure 2).

Figure 2.

Source: Excelencia in Education analysis of U.S. Department of Education, National Center for Education Statistics, 2019–20 National Postsecondary Student Aid Study (NPSAS:20).

Latinos’ Degree Attainment

While a lower percentage of Latino adults have earned college degrees compared to all adults, Latino students represent a majority of our nation’s growth in degree attainment. In the past five years, Latinos accounted for almost 80% of the increase in the overall number of certificates and degrees earned (nearly 190,000). In the same timeframe, Latinos’ degree attainment increased by 23%. While all communities must increase their degree attainment to meet our national goals, Latinos must accelerate their attainment in order for the U.S. to regain the top ranking in the world for college degree attainment.³

Latinos in the Workforce

Although there has been significant growth in Latinos’ degree attainment, the growth has been mostly concentrated at the certificate and associate levels, limiting access to the economic benefits of a bachelor’s degree — which is required for most high-paying positions. By 2031, a majority (72%) of jobs in the U.S. will require postsecondary education and/or training.

Latinos have the highest labor force participation of all groups. Two-thirds (66%) of Latinos (16 years or older) participated in the labor force in 2022, compared to 65% of Asians, 62% of Whites, and 62% of African Americans. By 2031, Latinos will make up 91% of the new workforce.

The future of the United States’ economy relies on the investments we are making now in the education of our future workforce: Latino students.

Which institutions are uniquely positioned to serve Latino students?

A clear profile of the institutions Latinos choose to attend provides a focus for directing efforts and resources to invest in accelerating Latino student success. For example, Latinos are more likely to attend public institutions, especially community colleges, Hispanic-Serving Institutions (HSIs), and Seal of Excelencia certified institutions.

HSIs are a critical set of institutions enrolling Latino students. HSIs are defined in federal legislation as accredited, degree-granting, public or private not-for-profit institutions of higher education with 25% or more total undergraduate Hispanic full-time equivalent student (FTE) enrollment.⁴ As the Latino student population grows, the number of HSIs changes each year making these institutions uniquely positioned to serve Latino students. Consider the following:⁵

• HSIs represent a small segment of higher education yet enroll the majority of Latino undergraduates. In 2022–23, 20% of all colleges and universities were HSIs and enrolled 63% of all Latino undergraduates.
• The number of HSIs is growing significantly. The number of HSIs has increased to 600 in 2022–23 up from 571 in 2021–22 (an increase of 29 institutions, compared to an increase of 12 the year before).
• A majority of HSIs are four-year institutions. Overall, 60% of HSIs are four-year institutions (public — 30%; private — 30%), and 40% are two-year institutions (public — 39%; private — 1%).
• The majority of HSIs are public institutions. Overall, 69% of HSIs are public and 31% are private.
• Latino representation at HSIs is high. Almost half of students enrolled at HSIs (46%) are Latino (see Figure 3).

Figure 3.

Source: Excelencia in Education analysis of U.S. Department of Education, NCES, IPEDS, 2022 Fall Enrollment, Institutional Characteristics, and Completions Surveys.

Given the role of HSIs in educating nearly half of our nation’s Latino students, investing in these institutions can improve the quality of education provided. Since 1995, one key source the federal government has allocated funding to support HSIs has been through the Title V, Developing Hispanic-Serving Institutions competitive grant program. The purpose of this program is to “expand educational opportunities for, and improve the academic attainment of, Hispanic students” and to “expand and enhance the academic offerings, program quality, and institutional stability” of institutions educating the majority of Hispanic students — HSIs.

In the last decade, federal spending to support HSIs has increased. In 2022, the Department of Education (ED) allocated $257 million in competitive grants to support HSIs, representing a 29% increase since 2012.⁶ Despite the increase in federal funding, the growth in HSIs has exceeded the numbers of those receiving Title V grants. Between 2011 and 2021, the number of HSIs has increased by 60% while funding to the Title V program has increased by 49% (see Figure 4). Additionally, while most HSIs have applied for Title V funds at least once, less than a third have successfully received this funding.⁷

Figure 4.

Source: Excelencia in Education analysis using U.S. Department of Education, NCES, IPEDS, 1994–2020 Fall Enrollment and Institutional Characteristics Surveys; and, U.S. Department of Education, Developing Hispanic-Serving Institutions Program — Title V Funding Status, https://www2.ed.gov/programs/idueshsi/funding.html

The increasingly competitive nature of Title V federal funding and increased community attention has increased the importance for HSIs to plan effectively for grant competitions and utilize funds to intentionally SERVE Latino students among those enrolled.

But what does it mean to go beyond enrollment to intentionally SERVE Latino students? Excelencia established the Seal of Excelencia in 2018 after working with institutional leaders as a way to set higher expectations of institutional efforts. The Seal is a national certification for institutions that strive to go beyond enrollment to intentionally SERVE Latino students and demonstrate their commitment to continue their transformation journey to ensure they are places where Latino, and all, students thrive.

The 39 Seal of Excelencia certified institutions represented less than 1% of colleges/universities yet enrolled 15% and graduated 17% of all Latino students in 2023. Further, data show Seal-certified institutions are leading nationally in serving Latino and all students beyond enrollment and graduation. Among Seal-certified institutions:

• All undergraduates have higher retention rates than students at all institutions.
• Latino faculty representation is almost three times higher than at all institutions.
• Latinos have higher graduation rates than Latinos nationally.

The growth of HSIs underscores the importance of deconstructing the “S” in serving. Some institutions become HSIs because of demography and geography, and not because of intentionality or impact in serving Latino students. The Seal of Excelencia highlights the potential for institutions to transcend merely meeting an enrollment threshold and actively cultivating an environment conducive to Latino student success. Developing the ability to serve Latino students enhances the capacity of institutions to serve all students.

For 20 years, Excelencia in Education has led the way through innovative, collaborative, and actionable efforts to accelerate Latino student success in higher education throughout the United States. Excelencia’s latest analysis builds on previous compilations of fact sheets to provide a detailed profile on Latino students and the institutions where they choose to enroll to inform policy and mobilize action.

To read the full report, Latinos in Higher Education: 2024 Compilation of Fast Facts, visit Excelencia’s website: https://www.edexcelencia.org/research/publications/latinos-higher-education-2024-compilation-fast-facts

Sources:

1. Excelencia in Education analysis of U.S. Department of Education, National Center for Education Statistics, 2019–20 National Postsecondary Student Aid Study
2. Ibid.
3. Excelencia in Education. (2020). Ensuring America’s Future: Benchmarking Latino College Completion to 2030. Excelencia in Education. Washington, D.C.
4. Title V, Part A of Higher Education Act (HEA), as amended (20 U.S.C. 1101–1101d; 1103–1103g)
5. ​​Excelencia in Education. (2023). Hispanic-Serving Institutions (HSIs) Fact Sheet: 2021–22. Washington, D.C.: Excelencia in Education.
6. Santiago, D., Arroyo, C., & Cuellarsola, L. (April 2024). Latinos in Higher Education: 2024 Compilation of Fast Facts. Washington, D.C: Excelencia in Education.
7. Aguilar-Smith, S., & Yun, J. (2023). Toward ensuring the equitable allocation of federal funding: An analysis of Hispanic-serving institutions’ pursuit and receipt of Title V grants. Education Policy Analysis Archives, 31. https://doi.org/10.14507/epaa.31.7281