There is tremendous ongoing political, policy, and media attention around whether and how Congress will address financial aid for higher education. Given this backdrop, now is a good time to examine some of the reasons why so many students need financial
aid to make their postsecondary pathway more viable.
Actually, it's never a bad time to be reminded that students' postsecondary pathways have substantial financial obstacles. Understanding that fact is critical for understanding their postsecondary outcomes.
The need for expanded financial aid beyond tuition and fees is correlated to the success of our college student populations that are more vulnerable to stopping out.
Underestimated and unexpected direct expenses associated with college affordability decrease student retention, especially for students from low-income
backgrounds. To cover these expenses, many students work while taking classes, and the outcomes are dire. Just 22% of all students from low-income backgrounds who work while enrolled complete college in six years, according to one estimate.
College affordability also negatively impacts students of color who overwhelmingly identify as first-generation and low-income.
Uncounted living expenses that are not covered by financial aid are often not widely communicated to students from colleges and universities.
An article featured by the American Council on Education by Dr. Robert Kelchen, now an assistant professor of higher education at the University of Tennessee, revealed that 60%
of the total cost of attendance at a public four-year college consists of indirect costs:
Using IPEDS data from 2013-14, the percentage of indirect costs was up to nearly 80% for community college students. Indirect costs are books and supplies, room and board, transportation, health insurance, and other personal expenses. These living
costs are not included in financial aid.
Non-tuition related costs range from $3,201 to $4,471 for additional expenses at four-year institutions.
In 2020, uAspire released a mixed-methods study that examined the role of indirect college expenses and affordability for students in California, Massachusetts,
New York, Pennsylvania, and Texas. Its findings include:
Nearly 80% of students surveyed said they had encountered an unexpected indirect expense at least once in the last school year.
Of 820 institutions in California, Massachusetts, New York, Pennsylvania, and Texas, 39% did not report indirect expenses that students accrue while attending college. Of those who did report expenses, there were outdated or missing estimates, itemized
lists with no explanation of estimated costs, or itemized lists with no estimated costs.
88% of students felt stressed about affording indirect expenses at least one or two times per semester. Over 50% of students reported feeling stressed every month.
68% of students turned down a school-related opportunity because of the cost associated with participating in the event or programming.
42% of students were concerned that they would not be able to complete their degree because of indirect expenses not covered by financial aid.
79% of students who were surveyed encountered an unexpected indirect expense at least 1-2 times during the academic year. To offset these unexpected expenses, students changed their eating or food shopping habits, cut back on social activities, increased
work hours, did not buy all required books or supplies, stopped using transportation, and relied more on their credit cards.
This report’s results suggest that indirect expenses unrelated to tuition exacerbate students’ concerns about completing college. These costs are putting strains on students’ mental health and wellness as well as their overall engagement in campus activities.
Another study from 2019 by the California Student Aid Commission on student expenses and resources found that 64% of students
listed the cost of college and balancing school and work responsibilities as the greatest barrier to being successful while in college.
Of the 150,000 California college students surveyed, nearly 1 in 3 students reported that they experienced food and housing insecurities while in college. Specifically, Black and Hispanic students, who were most likely to receive financial aid and other
public assistance benefits, also were more likely to report food and housing insecurities in comparison to their white and Asian counterparts.
The stress associated with housing and food insecurities can negatively impact both students of color and students from low-income backgrounds. The American Psychological Association reports that the inability to meet basic needs will result in negative consequences for the psychosocial and educational outcomes of students (e.g. academic performance, college completion, concentration in class, isolation, and depression).
Nearly 70% of college students work while in college. However, students from low-income backgrounds are more likely than their higher-income counterparts to work more than 15 hours per week.
Fifty-nine percent of low-income students who were working while studying reported having a C or lower in their classes. Unfortunately, many students
from low-income backgrounds experience pressure to work while in school in order to support themselves and meet financial commitments related to family obligations.
Living expenses matter and they impact students' outcomes and experiences during college. These are some of the many facets of a student’s day-to-day experiences that impede their ability to be a successful member of their college community. Tuition assistance
alone is not enough to stabilize concerns around college affordability.
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