Fidelity Investments is pledging $250 million as part of an effort to give Black, Latino and historically underserved students access to post-secondary education and support, the financial services company announced Tuesday.
The initiative, called Invest in My Education, aims to “improve post-graduate outcomes for Black, Latinx, and other historically underserved students, supporting the opportunity for economic mobility and a foundation to build a path toward generational wealth,” according to the company. It will first roll out in the Boston, Raleigh-Durham and Dallas-Fort Worth regions.
The company is working with groups such as UNCF and MENTOR.
Through Invest in My Education’s Fidelity Scholars Program, the financial services company will award scholarships to “help students overcome barriers to success and graduate debt-free” from either a college or certificate program, Fidelity said. The college can be a two- or four-year institution
That part of the initiative also offers “mentorship by Fidelity associates, internship/apprenticeship guidance, and financial education programming,” among other support, the company said.
Invest in My Education will also disburse two types of grants. One type will go to institutions to “assist students who are close to completion and in danger of dropping out” over outstanding tuition and academic fees, according to Fidelity.
The other type is meant for nonprofits with a certain focus. With those, the program aims to “help strengthen coordination among organizations related to advising, transition and support to ensure quality pathways to post-secondary education,” Fidelity said.
Invest in My Education applications will be through the UNCF and are slated to open in March. Its first group of students will be picked in the summer, according to Fidelity.
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The financial services firm said it would use college completion rates as well as students’ ability to graduate student debt-free and land well-paying positions “that facilitate greater economic mobility and financially firm futures” to track Invest in My Education (ME)’s success.
“By taking a unique, long-term and holistic approach, Invest in My Education has the potential to support economic mobility for up to 50,000 students over the next five years – and that is really just the beginning,” Pamela Everhart, the head of regional public affairs and community relations at Fidelity, said in a statement.
A 2022 Department of Education report found the median earnings of a young professional holding a bachelor’s degree was $59,600 in 2020. That figure was 63% higher than the median $36,600 earned by people for whom high school was their highest level of education, according to the report.
In 2021, the attainment rate of a bachelor’s degree or higher was 26% and 23%, respectively, among Black and Hispanic 25- to 29-year-olds, the same report found. For White individuals in that age range, it was 45%.
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