In today’s higher education landscape, financial instability can be one of the biggest obstacles to college success, putting many students at risk of achieving their educational goals. When an unexpected expense comes along, it impacts students’ ability to pay for tuition and other basic needs and places them in situations where they might need to prioritize earning income over finishing their degree. These unforeseen financial emergencies disproportionately impact students living with low-incomes, who are first-generation, and who are non-traditional students.
The ROI of emergency aid programs in higher education
As the future of federal funding for institutions and students remains uncertain, colleges and universities are feeling the pressure to make tough budget decisions. Unfortunately, this leaves programs that directly support student success under intense scrutiny. Yet, research has consistently shown that emergency aid grants offer a strong return on investment for higher education institutions, contributing to academic persistence, improving graduation rates, and ultimately protecting tuition revenue. We’ve seen this firsthand at Southern New Hampshire University, where students who received emergency grants were 15% more likely to stay enrolled in the next term compared to control groups. And at Dallas College, where students who received emergency aid were twice as likely to graduate, despite the immense challenges and administrative hurdles created by the COVID-19 pandemic.
Emergency aid and basic needs programs are a powerful tool to help increase student retention and graduation rates, but many institutions struggle with designing and implementing them effectively. At Beam, we’ve worked with more than 100 colleges and universities across the country to distribute emergency aid and basic needs funds that support educational persistence and students' wellbeing.
Here’s what we’ve learned about what works—and how institutions can build stronger safety nets to help students stay on track and achieve their academic goals.
Emergency aid as a pathway to student success
Colleges have long focused on academic support to improve retention, but financial barriers are often a more immediate threat to student success. Research shows more than half of college students worry about monthly expenses, and 61% worry about having enough money to pay for school. Small, unexpected expenses such as a car repair or medical bill can force students to pause their studies or discontinue enrollment altogether.
By proactively offering emergency aid and basic needs supports, institutions can help students stay enrolled and complete their degrees, ensuring that short-term financial disruptions do not become long-term setbacks. When implementing these programs, there are a few things to consider to make them successful:
1. Remove barriers to access, starting with your application
Traditionally, most college financial assistance programs have daunting and lengthy applications with unclear eligibility requirements. Complex applications that ask overly-personal details or sensitive data create a barrier to students seeking access to aid. Reducing barriers begins with creating simple, streamlined applications that ask only necessary questions.
In our partnership with San Diego Mesa Community College, we saw firsthand how a simple application process was essential to connecting students with emergency funds. In the wake of the pandemic, we partnered with them to help distribute $7.4 million in Higher Education Emergency Relief Funds (HEERF) to students. On average, students spent just over 4 minutes on the application.
By streamlining applications and leveraging digital disbursement methods, San Diego Mesa Community College ensured students received their funding decision in eight hours, with funds dispersed in less than a day. This quick turnaround helped reduce stress and allowed students to focus on their education.
In your emergency aid program, ensure students can apply with minimal friction by designing applications that:
- Are accessible across multiple devices
- Are easily translated into multiple languages
- Require students to fill in only the most necessary information to assess need
- Don’t ask invasive questions about their personal situations
Read more ways to reduce barriers in emergency aid applications.
2. Communication is critical, so is building trust.
A lack of awareness is often one of the main culprits for students' underuse of emergency aid programs. Communications campaigns grounded in building trust are a critical component to ensuring students are aware of and apply for funds that are available to them. These require collaboration amongst multiple stakeholders, like financial aid offices, academic advisors, and student success centers, and aligned messaging to ensure students feel secure and confident in accessing and accepting cash assistance.
This type of strategy was particularly critical when we helped Compton College deliver emergency funding to dual-enrolled students. Students who participated cited that communications from multiple stakeholders helped them feel secure and confident in accessing and accepting cash assistance.
To get started on this type of trust building campaign, consider:
- Providing multiple touchpoints through trusted sources, like academic administrators and financial aid officer
- Sharing emergency aid information on multiple platforms, like official websites, student newsletters, text messaging, and partnerships with campus organizations
- Using messaging that resonates with students. See our tips for communicating with students experiencing financial trauma.
3. Support students’ basic needs before crisis strikes
Financial instability often affects students long before they seek help, impacting their ability to focus on coursework and thrive while completing their education. Taking a holistic approach to supporting students and addressing basic needs—like food, housing, and transportation—can help prevent financial crises from escalating. Institutions that have piloted basic needs assistance or guaranteed income programs have increased academic outcomes by creating a bigger buffer for students experiencing tight financial situations.
This is exactly why our partners at DCPS Persists launched a basic needs microgrant program to support the academic success of their college students. This unconditional cash assistance helped students cover essential expenses, like food and housing.
“For so many of our students, a sudden expense—like a car repair or an unpaid bill—can be the difference between staying in college or dropping out,” said Jim Kline, Executive Director, DC Public Education Fund. “With Beam, we’re able to step in at just the right moment, providing the kind of support that says, ‘We’ve got your back.’ Beam’s platform has been a game-changer, helping us deliver aid quickly and seamlessly to students wherever they are.”
By integrating basic needs support into emergency and financial aid, colleges and universities can create a proactive safety net that keeps students enrolled and thriving.
Build your emergency aid program with Beam
By making emergency aid a central pillar of student support, colleges and universities can empower more students to stay enrolled, complete their education, and achieve their college dreams.
Book a demo with us to see how Beam’s expertise—gained from partnering with over 100 colleges—can help your institution design and implement effective emergency aid and basic needs programs that drive student success and wellbeing.
