The expanded Starbucks College Achievement Plan
will be offered to more than 140,000 full-time and part-time
partners (employees) and will also provide a remarkable additional
benefit to the 10,000 Opportunity Youth Starbucks has committed to
hire
Full tuition coverage is now available for all
four years of college with access to 49 online degree programs,
with no commitment to stay with Starbucks post-graduation
Nearly 2,000 partners successfully enrolled to
date, Starbucks commits to at least 25,000 graduates by 2025. Over
ten years, Starbucks estimated investment could reach up to $250
million or more
Starbucks Corporation (NASDAQ: SBUX) and Arizona State
University (ASU) today announced that Starbucks College Achievement
Plan, first introduced in June 2014, will now offer 100 percent
tuition coverage for every eligible U.S. Starbucks partner
(employee). As part of its commitment to redefine the role and
responsibility of a public company, Starbucks developed this
program in partnership with ASU to create additional pathways to
opportunity for its partners. Full tuition coverage was previously
available to juniors and seniors, but now all eligible part-time or
full-time partners can apply for and complete all four years of a
bachelor’s degree through ASU’s top-ranked online degree program.
In addition to partners receiving full tuition coverage, the
company is offering faster tuition reimbursement - now at the end
of each semester.
Starbucks shift supervisor and 14-year
partner Kaede Clifford became the first graduate of the Starbucks
College Achievement Plan in December 2014 with a degree in Mass
Communication and Media Studies. (Photo: Business Wire)
"Everyone deserves a chance at the American dream," said Howard
Schultz, chairman and ceo of Starbucks. "The unfortunate reality is
that too many Americans can no longer afford a college degree,
particularly disadvantaged young people, and others are saddled
with burdensome education debt. By giving our partners access to
four years of full tuition coverage, we will provide them a
critical tool for lifelong opportunity. We're stronger as a nation
when everyone is afforded a pathway to success."
Nearly 2,000 Starbucks partners have already enrolled in the
program, and this significant expansion will offer a top-notch
education to all full-time and part-time partners, with the
opportunity to choose from 49 undergraduate degree programs through
ASU Online. The company will invest up to $250 million or more to
help at least 25,000 partners graduate by 2025. Over the next three
years, Starbucks has also committed to hiring 10,000 “Opportunity
Youth,” a population of nearly six million disconnected youth
between the ages of 16 and 24 who are not working or in school.
With the right skills and training, Starbucks believes Opportunity
Youth represent a huge, untapped talent pool for American
businesses, and through employment and access to higher education,
hopes to help create a sustainable future for these young
Americans.
“The College Achievement Plan has been a powerful demonstration
of what is possible when an enlightened and innovative corporation
joins forces with a forward-thinking research university,” said ASU
President Michael Crow. “This program is a clear expression of
Starbucks commitment to its partners and ASU’s continuing mission
to provide access to higher education to all qualified
students.”
United States Secretary of Education, Arne Duncan, looks to this
innovative model from Starbucks and ASU as an example for other
industries and businesses. “Howard Schultz and Arizona State
University President Michael Crow continue to do incredible work
together,” said Secretary Duncan. “Today’s announcement from
Starbucks and ASU is another win for students. Partnerships like
this one show how innovative strategies can expand access to
college for thousands of students. I hope more institutions and
companies will take their lead to collaborate on ways we can all do
more to make higher education more attainable and affordable.”
The value of higher education
There is a clear and demonstrated value of having a college
degree, both the opportunity it affords and the measureable impact
on earning potential throughout a lifetime.
- The disparity between what U.S. college
and high school graduates earn has more than doubled in the past 30
years.1 A typical bachelor's degree recipient can expect to earn 66
percent more (compared with a high-school graduate) over a 40-year
career.2
- The benefits are not limited to wages
alone. On virtually every measure of economic well-being and career
attainment—from personal earnings to job satisfaction to the
percentage employed full time—young college graduates are
outperforming their peers with less education.3 And, people with a
college degree tend to be healthier, and they exercise more.4
- Those with college educations are even
shown to live longer than their peers. Between 1990 and 2008, the
life expectancy gap between the most and least educated Americans
grew from 13 to 14 years among males and from 8 to 10 years among
females. This gap has been widening since the 1960s. At age 25,
U.S. adults with a college degree can expect to live nine years
longer than those with only a high school diploma.5
- A college education promotes civic and
community involvement. An individual with a bachelor’s degree is
twice as likely to volunteer as a high school graduate6, and adults
with a higher level of education are twice as likely to vote as
those with lower education levels.
- College education is crucial to getting
a middle-class job – millennials with only a high school degree are
more than three times as likely to be unemployed as those with a
college degree.7
- The fastest-growing jobs in America all
require a college degree. By 2018, 63 percent of all jobs in the
economy will require postsecondary education and training beyond
high school.8
As an independent, private foundation, Lumina Foundation is
committed to increasing the proportion of Americans with
post-secondary credentials, and applauds this innovative program
from Starbucks and ASU. “The value of a college degree only
continues to increase. But so do the costs of achieving that
degree,” said Lumina Foundation President and CEO Jamie Merisotis.
“Starbucks is not only recognizing the value of higher education,
but is actively addressing the disparity in opportunity to achieve
a college degree. By investing directly in their partners, they are
also investing in the long-term success of their company and the
nation.”
In addition to benefitting the individual, educated and employed
individuals have a positive impact on the national economy.
Persistent high unemployment among young people adds up to $25
billion a year in uncollected taxes. One unemployed 18-24-year-old
costs federal and state governments more than $4,100 a year in
forgone tax revenue and benefits received.9 Educating America’s
young people and giving them the best opportunity for a sustainable
future and continued employment is a benefit to our economy and
society.
The benefit for Starbucks partners
Through this innovative collaboration, all benefits-eligible
partners in the U.S., including Teavana®, La Boulange®, and
Evolution Fresh™ partners, who do not already have a college
degree, may choose from 49 undergraduate degree programs taught by
ASU’s award-winning faculty such as electrical engineering,
education, business and retail management. Partners will have no
commitment to remain at the company past graduation. This is in
addition to the full comprehensive package of benefits that
Starbucks offers to its partners – including healthcare coverage,
company stock for eligible partners and 401(k) matching. Starbucks
is one of the only retailers to offer a stock program that includes
part-time retail hourly partners.
ASU's online degree programs offer the highest quality and most
flexibility, ensuring the best chances for success in achieving a
degree. Each course is fully designed to make the most of online
learning, and ASU’s highly-engaged faculty are retrained for
effective online teaching. ASU is a leader in employing innovative
educational technology to deliver tailored academic support. They
also invest in the student support services that are critical to
reducing drop-out rates, and are ranked first in student services
by US News & World Report. The diplomas ASU awards to online
students are identical to their on-campus degrees, and their
session-to-session student retention rates and graduation rates are
extremely strong.
“I know that there is an entire company standing behind me
saying ‘You can do this.’ And that is an incredible feeling,” said
Markelle Cullom, a three-year Starbucks partner enrolled in ASU
Online through the College Achievement Plan. “For me, working at
Starbucks is the opportunity for a better future.”
Additional details on this announcement, as well as downloadable
photo and video assets – including stories from partners currently
enrolled in the College Achievement Plan – are all available on the
Starbucks Newsroom http://news.starbucks.com/collegeplan.
About Starbucks
Since 1971, Starbucks Coffee Company has been committed to
ethically sourcing and roasting high-quality arabica coffee. Today,
with stores around the globe, the company is the premier roaster
and retailer of specialty coffee in the world. Through our
unwavering commitment to excellence and our guiding principles, we
bring the unique Starbucks Experience to life for every customer
through every cup. To share in the experience, please visit us in
our stores or online at http://news.starbucks.com.
About Arizona State
University
Arizona State University is one of the nation’s leading public
research universities and is ranked among the top 100 universities
in the world. Known for innovation and entrepreneurism, ASU has
pioneered the model for a New American University with a focus on
accessibility and quality education, training students to learn for
a lifetime. According to its mission, ASU “will be measured not by
who we exclude, but rather by who we include and how they succeed;
pursuing research and discovery that benefits the public good;
assuming major responsibility for the economic, social, and
cultural vitality and health and well-being of the community.”
1 Source: David H. Autor, Associate Department Head, MIT
Department of Economics and author2 Source: U.S. Department of
Labor.3 Source: Pew Research Center4 Source: The College Board5
Source: Center on Society and Health6 Source: Bureau of Labor
Statistics, (2015), Volunteering in the United States, 2014.7
Source: Pew Research Center8 Source: Carnevale, Smith and Strohl,
“Help Wanted” at 13. full article9 Source: In This Together: The
Hidden Cost of Young Adult Unemployment (January 2014)
Photos/Multimedia Gallery Available:
http://www.businesswire.com/multimedia/home/20150406005974/en/
Starbucks Contact, Media Relations:Laurel
Harper206-318-7100press@starbucks.com
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