National Survey Reveals 59% of College Students Considered Dropping Out Due to Financial Stress; Nearly 80% Report Negative Impact on Mental Health

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Jun 26, 2024, 09:00 ET

More than half of students must choose between college expenses and basic needs

RESTON, Va., June 26, 2024 /PRNewswire/ -- A new report released by Ellucian, the leading higher education technology solutions provider, underscores the importance of financial aid in students' college enrollment decisions and academic journeys across the United States. In partnership with EMI Research Solutions, Ellucian conducted a comprehensive survey of 1,500 college students from diverse demographics and backgrounds. The findings offer valuable insights into the challenges students face and the role higher education institutions need to play in ensuring access to financial aid resources for all students.

"Financial aid is a critical factor in determining where students opt to pursue higher education. In fact, almost half of students say a $5,000 difference in scholarship aid would change their top school choice," said Laura Ipsen, President and CEO, Ellucian. "With 61% of students reporting financial stress negatively impacting their education, it's clear that academic success is directly linked to student financial success. At Ellucian, our mission is to power higher education so institutions can empower student success, and we deliver tools and technologies to streamline the financial aid process, helping to unlock learning for all."

Key survey findings:

Financial Instability is Creating Challenges with Retention
As higher education grapples with decreasing retention rates, financial uncertainty is one of the main challenges.

19% of surveyed students dropped out, with financial uncertainty cited as the leading cause.
59% of students considered dropping out due to financial stress.
Only 21% of students surveyed said they were incredibly confident they understood the details of their financial aid offer letter.
Students identified these impacts of financial stress and uncertainty that affected their college experience:
- 78% reported negative impacts on mental health due to financial stress.
- 61% said the stress of funding their education negatively impacted their academic performance.
- 57% said they had to choose between college expenses and basic needs like food and clothing.

The Influence Financial Aid Has on College Decisions is Staggering
Incoming college students are adamant that financial aid is key to their college decision.

Financial Aid Amounts

76% of students reported that the amount of financial aid awarded to them and the overall financial aid process impacted their college choice.
44% of students said they would switch their top choice school for just $5,000 more in scholarship aid.

Financial Aid Processing Time

22% of students would enroll elsewhere after waiting only two weeks for financial aid processing.
After one month, that attrition rate reaches 73%, and at the two-month mark, 92%.

Students Expect Technology to Manage Their Student Experiences
Students want and expect more from technology to maintain and access their student services.

Only 26% of students were completely satisfied with their institution's current digital tools for managing their student experience.
92% expected all student account services to be accessible from one place, with 88% expecting mobile access.

Read the full survey report here: https://lp.ellucian.com/whitepaper-student-voice-report.html

ABOUT ELLUCIAN
Ellucian powers innovation for higher education, partnering with more than 2,900 customers across 50 countries, serving 22 million students. Fueled by decades of experience with a singular focus on the unique needs of learning institutions, the Ellucian platform features best-in-class SaaS capabilities and delivers insights needed now and into the future. These solutions and services span the entire student lifecycle, including data-rich tools for student recruitment, enrollment, and retention to workforce analytics, fundraising, and alumni engagement. Ellucian's innovative solutions, vast ecosystem of partners and user community of more than 45,000 provides best practices leading to greater institutional success and achieving better student outcomes.

ABOUT THE SURVEY METHODOLOGY
Ellucian surveyed 1,500 college students across the U.S. in partnership with EMI Research Solutions between February 26, 2024, and March 12, 2024. The sample ensured representation across various demographics, including age, race, and first-generation status, to provide comprehensive insights into students' financial aid experiences. 42% of respondents were traditional age (17-24 years old), and 58% were working adult learners. 42% were also first-generation students. Of those first-generation students, 70% were working adult learners, while 30% were traditional age. 49% of respondents identified as Caucasian, 27% as Black/African American, 16% Hispanic/Latin American, and 8% identified as Other. The survey also collected information on household annual income; 39% of respondents said they were Pell Grant Eligible, 56% were Middle Class, 2% made over $200K per year, and 3% were unsure. 20% of respondents were from 2-year institutions, 26% from private 4-year institutions, 42% from public 4-year institutions, 10% from online institutions, and 2% from for-profit institutions.

Media Contacts
Jess Weston
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SOURCE Ellucian