Businesses can instill college-going culture

It's no secret that Idaho's college enrollment rate is one of our state's most critical challenges, with far reaching implications. The Coeur d'Alene School District saw a 6 percent drop in its "go-on rate" from 2012 to 2013, according to Idaho Education News (meaning the percentage of students who continue their education after high school). As a state, Idaho sits dead last in the nation for go-on rates. For many parents, these facts serve as a sobering reminder of the disconnect between the desire to "go on" and the means of doing so.

Businesses, too, should be troubled by these numbers. Our college-going rates aren't just an issue of personal achievement-educational attainment has a direct impact on our local and state economic outlook. The U.S. Census Bureau reported that a college degree is worth an additional $1 million in lifetime earnings. For every Idahoan without a degree, our state loses out on that money circulating through our economy and spent at local businesses. Furthermore, low college-going rates make for a shallow pool of job candidates, making it less likely that high-paying, high-growth businesses will choose to operate in Idaho.

Idaho's low rates of post-secondary enrollment are certainly the product of many complex factors, but the fact remains that for many students, the major reason for not attending college or professional/technical training is financial. The specter of student loans and the complexity and uncertainty of applying for financial aid all contribute to the short-sighted conclusion that college isn't worth the financial investment. A University of Idaho/Micron Foundation study on STEM education found that 43 percent of parents are unsure how financial aid works in college. As a parent with a freshman at the University of Idaho, I can attest that the process can seem complicated and imposing.

Businesses can play a critical role in empowering more families to help further their children's education by implementing company policies that encourage or incentivize contributions to 529 college savings accounts, such as IDeal, Idaho's College Savings Program. Companies that wish to help families save for college can do so in a variety of ways, including offering information about IDeal accounts in employee benefits packets, allowing for easy, automatic payroll deductions to IDeal, matching employee contributions to their IDeal accounts, or even granting company foundation scholarships through IDeal.

A 2010 study by Washington University found that students with college savings accounts - regardless of the account balance - are seven times more likely to attend college than those without one. In addition to reducing the student's dependence on financial aid or student loans, the existence of a college savings account sets college-going expectations for a child who is years away from graduation. In the words of one Idaho grandmother who opened IDeal accounts for her grandchildren, "It sends the message, 'You're on the path, you're on your way!'"

Often, success in business comes down to an ability to read trends and anticipate the future. A bright future for Idaho's economy will depend on whether we can increase our post-secondary attendance rate, build a more educated workforce, and bring better jobs and more money to our state. Idaho needs visionary business leaders with the foresight to understand that helping families save for college isn't just a kind gesture - it's a business decision that yields a return on investment for anyone looking to employ the next generation of workers. We're working to improve the communication and options for our colleagues at our company, and I encourage other business owners and managers to do the same.

Mike Kennedy is president of Intermax Networks in Coeur d'Alene, employing 27 people with offices in Kootenai, Bonner and Boundary counties. He volunteers with Idaho Business on Education and collaborated with them on this piece.