
I know people are exhausted by the phrase new normal. But our experiences in 2020 can, in fact, represent our new normal in positive ways.
2020 taught us that when we must set aside expectations, a new set of possibilities is created. So, while college will look different going forward, its core will always be teaching and learning.
With that in mind, I am committed to making a college education possible for California families no matter what it looks like. I know you are too—Golden State residents hold 345,000 ScholarShare 529 accounts, with a total value of $10.4 billion in assets under management as of September 30, 2020.
Californians have always believed that a willingness to explore new opportunities creates diverse and enriching prospects. So, let’s acknowledge where we are and look toward the future with optimism.

Julio Martinez
Executive Director
ScholarShare Investment Board



2020: Realities
HIGHER EDUCATION IS CRITICAL TO THE U.S. ECONOMY, employing 3 million people and contributing more than $600 billion to the national gross domestic product.1 With over 3.2 million students at 228 colleges, California’s system of higher education is integral to our nation’s economic health.
Given the realities of a global pandemic, California’s public colleges and universities transitioned from lively campuses to virtually empty ones, sending revenues spiraling and costs soaring. The University of California (UC) and California State University (CSU) report losses totaling $1.4 billion. California Community Colleges (CCC) estimate they will lose $1 billion over the next year.2
Because a competitive education produces job-ready graduates, California’s colleges and universities are key drivers of U.S economic success. That means we have a common interest—make California education strong.
California Colleges Headcount3

Fast Facts
1 in 10 California employees is a CSU grad4
UC is California’s third largest employer5
CCC trains 80% of California firefighters, law enforcement personnel, and EMTs6
1Paxson, NY Times, April 26, 2020
2Ackerman and Levine, CAL Matters, June 13, 2020
3Community College League of CA, 2020
4CSU Fact Book, Academic Year 2019–20
5Watanabe, LA Times, April 2, 2020
6Ackerman and Levine, CAL Matters, June 13, 2020

California's
Big Challenges
1. Covid
COVID-19 UPENDED the landscape of higher education. Not only were colleges and universities forced to transition to classes online, but they also faced concerns around enrollment, finances, as well as student health and support. Of course, the big question was whether to open campuses for the next academic year. As updates about the virus and its death toll arrived from state and federal health agencies, campuses struggled to devise strategies to respond. UC President Napolitano said, “I expect almost all of our campuses will be some sort of hybrid, where some courses will remain online.” CSU President White confirmed that they would “mostly remain online.” CCC Chancellor Oakley said, “By and large we’re going to be online or in some remote platform fields.”7
2. College Affordability
CALIFORNIA INVESTS $2 BILLION ANNUALLY on state-based aid programs administered by the California Student Aid Commission (CSAC).8 And while the primary form of student aid is the Cal Grant, gaps in the program mean thousands of students and families shoulder a large burden of the cost of college. The majority of students eligible for the award do not receive it—and even when a student does receive the award, only an average of 15% can be used for costs like food and housing after tuition and fees are paid. Due in part to these disparities, student debt in California has more than doubled in the past decade.9
Undergraduate California
Resident Tuition Costs

These tuition costs represent the estimated costs of attending one year of college as a full-time student at each respective institution. These estimates do not include the cost of additional campus-based fees. Your total costs will vary depending on your personal expenses and the campus you attend.

3. Socioeconomic Diversity
AMERICA'S PRESENT RACIAL RECKONING compels California to reconsider how it supports each and every college-bound student. Of course, California’s education system serves a diverse student population, however, achievement gaps persist—only 48% of students who enter a community college complete a degree, disproportionately impacting minority students as a result of enrollment inequities between racial groups and earning disparities.13 Add to that the fact that 71% of returning students said they lost income due to COVID-19 in a recent survey of 76,000 California students, and it’s no surprise financial aid appeals are rising—as much as 36% more in some instances.14, 15
7Alpert, abc7.com, June 7, 2020
8The Campaign for College Opportunity, April 2020
9Granville, The Century Foundation, January 22, 2020
10CCC, ICanAffordCollege.com, 2020
11Calstate.edu, 2020
12Universityofcalifornia.edu, 2020
13Chetty, Friedman, Suez, Turner, Yagan, Opportunity Insights, February 2020
14CA Student Aid Commission, 2020
15Arredondo, Cal Matters, July 22, 2020

California will not waste this crisis.
We are a resilient people and our residents will make a way to greatness.
Onward & Upward
WHEN WE LOOK BACK ON 2020 and recognize it as a watershed moment for education, you can be sure California will have been a force for educational reform for its residents—and for the entire country.
A Little Relief
California colleges initially received over $1.3 billion in federal support from the CARES Act. On March 4, 2020, Governor Newsom announced that private student loan providers agreed to extend relief to over 1.1 million Californians with student loans. He also issued an executive order to stop debt collectors from garnishing COVID-19-related financial assistance, meaning students struggling to make loan payments are eligible for forbearance without negative credit reporting.16
California will not waste this crisis.
We are a resilient people and our residents will make a way to greatness.
CARES Act Fund Distribution17

Out with the Old
In a move that reverberated throughout higher education, UC suspended SAT and ACT testing requirements for applicants until 2024 and entirely for in-state applicants by 2025, a decision their board believes will be fairer for both poor and minority students.18
Defeating Discrimination
Sixty CCC presidents formed an alliance to fight racism called California Community College Equity Leadership Alliance. Members will work with the USC Race and Equity Center to train their respective employees on topics like hiring and retaining faculty of color, fostering inclusive classrooms, and integrating race across the curriculum.19
"There is amazing momentum for righting the wrongs caused by centuries of systemic racism in our country."
Justice for All
Amid the national uproar over racism and police brutality, CSU voted to make ethnic studies a graduation requirement in the first change to their general education curriculum in over 40 years. And, the Governor mandated this graduation requirement into state law, taking effect in the 2021–22 academic year.20
"[This decision] will empower our students to meet this moment in our nation’s history, giving them the knowledge, broad perspectives and skills needed to solve society’s most pressing problems."
Online in Time
In the early days of COVID-19, CCC brought the largest higher education system in the country from offering less than a quarter of its instruction online to nearly all online in a matter of weeks, altering the fabric of higher education in California for the coming years.21
Making Law
This September, Governor Newsom signed Senate Bill 898 into law. This bill will ensure all the funds saved for your kid’s college education can’t be touched by creditors, providing a measure of security for ScholarShare 529 participants.22
Borrower Bill of Rights
Landmark student loan borrower protection bill AB 376, also known as the student loan borrower “bill of rights," was signed by Governor Newsom, establishing enforceable, statewide industry standards for student loan servicers and protecting student loan borrowers against unfair, deceptive, and predatory practices by servicers and lenders. 23
for the 2020–21 academic year.24
19Weissman, Diverse Issues in Higher Ed., June 11, 2020
20WTOP News, July 22, 2020
21CCC, 2020 State of the System Report, 2020
22Symon, CA Globe, June 14, 2020
23Minsky, Forbes, September 25, 2020
24Caldwell, CA Student Aid Commission, June 17, 2020

College Countdown
OVER 110,000 SCHOLARSHARE 529 ACCOUNTS for students on the cusp of transitioning to college have prompted ScholarShare 529 to launch a website offering just-in-time information about this exciting stage in a student’s life. Covering topics like affording college, using your 529, college admissions, student life, academic success, and parenting, College Countdown works with industry professionals from across the country to equip you for this exciting season in life. Check out the site…
Parent Advisor Council
COLLEGE COUNTDOWN'S PARENT ADVISOR COUNCIL (PAC) is comprised of fellow 529 account owners in their third and fourth year of redeeming their 529 savings. Their kids made the transition to college and now they’re eager to connect with you. Go to College Countdown to meet the PAC member closest to you.
Parents Who
Have Been There,
Done That

Ugift
Ugift is our new and improved service that makes it easy for friends and family to contribute to a college savings plan:
- Invite friends and family using email or social media like Facebook and Twitter
- Receive a unique gift code dedicated to your account
- Print certificates for any occasion
- Anyone can contribute electronically or by mail
Ugift is a registered service mark of Ascensus Broker Dealer Services, LLC.
Click here to learn more about Ugift.
The ScholarShare 529 College Savings Plan provides all account owners with contact information for their state legislators annually, as required by law. If you would like to contact your state representative about your ScholarShare 529 account, visit findyourrep.legislature.ca.gov to find the appropriate address and phone number, or contact our office at
916-651-6380.
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