Industry Insights
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Student Financial Stress and the Impact on Community College Enrollment
Community colleges play a vital role in helping learners access affordable education and career-ready training. Students can earn credentials that lead to meaningful jobs quickly, especially in healthcare. Yet for many, financial stress and unmet basic needs make it difficult to enroll or stay enrolled. These barriers often weigh heaviest on part-time, nontraditional, first-generation, and low-income learners — the very students community colleges aim to serve.
Understanding these financial barriers is key to addressing them. Maslow’s hierarchy of needs reminds us that if students are worried about food, housing, or safety, their capacity for learning and achievement suffers. When those foundational needs are met, students are far more likely to stay motivated, persist, and succeed.
1. The Scope of Financial Stress among Community College Students
Basic Needs Insecurity
- Many community college students struggle with food, housing, transportation, and technology insecurity. (Goodman, Weiss, & Partridge, 2025)
- Basic needs insecurity, whether it is food or housing, has been reported by 59% of students. (Goodman, Weiss, & Partridge, 2025)
- Non-tuition expenses, such as housing, food, transportation, and childcare, often outweigh the cost of tuition. (Goodman, Weiss, & Partridge, 2025)
- Additional costs — textbooks, uniforms, certification fees, or access to software — can make completing a program even harder.
Impact on Academic and Mental Health Outcomes
- 59% percent of students cite financial stress as a reason they’ve considered dropping out. (Ellucian Health, 2024)
- 61% say it hurts their academic performance, and 78% link it to mental health challenges. (Ellucian Health, 2024)
- In one study, nearly half of Texas community college students said personal finances affected their ability to concentrate on coursework. (Mowreader, 2024)
2. How Financial Stress Affects Enrollment and Persistence
Financial strain forces students to make trade-offs that often delay or derail their goals, such as:
- Reduced course loads: Students may take fewer credits to save money, which lengthens time to completion and may affect financial aid eligibility.
- Higher dropout/stopout (pausing attendance) rates: Recurring financial shocks or resource gaps can lead students to pause their studies or drop out entirely.
- Lower re-enrollment: Once students leave, debt, job demands, and lost momentum often keep them from returning.
- Equity gaps: These challenges disproportionately affect first-generation, low-income, and minority students — compounding disparities in obtaining an education.
For continuing education and program leaders, these patterns translate directly to enrollment instability and lower program completion rates, which are key drivers of institutional funding and reputation.
3. Strategies to Reduce Financial Stress and Support Student Success
Below are practical strategies community colleges can do to reduce financial barriers and improve retention — especially in costly, high-demand fields like healthcare.
|
Strategy |
Description / Examples |
Implementation Considerations |
|---|---|---|
| Emergency funds | Provide small, flexible cash grants to address short-term crises (car repairs, rent, technology, medical costs). | Keep criteria simple and promote awareness broadly. |
| Basic needs hubs | Create centralized offices or “one-stop” centers connecting students to food pantries, childcare, housing aid, and transportation support. | Coordinate partnerships across campus and community organizations. |
| Predictive analytics & early alerts | Use LMS engagement, attendance, and payment data to identify students at risk and proactively intervene. | Protect privacy while promoting trust and transparency. |
| Flexible scheduling | Offer evening, weekend, hybrid, and online courses to reduce conflicts with work and family obligations. | Especially critical for healthcare and HIM programs where students often balance caregiving with education. |
| Course material assistance | Adopt open educational resources (OER), course reserves, or textbook lending programs to reduce material costs. | Faculty buy-in, library coordination, and funding are needed. |
| Childcare support | Provide on-site or subsidized childcare, or partner with trusted community providers to reduce a significant barrier for parenting students. | Navigate licensing, scheduling, and staffing logistics early. |
| Paid internships & work-study programs | Expand campus employment, workstudy, paid internships, or microjobs to help students earn while enrolled. | Ensure positions are flexible, relevant, and don’t conflict with academic goals. |
| Streamlined financial aid & advising | Streamline FAFSA and offer “just-in-time” financial aid advising, or auto-award small institutional grants to simplify the process. | Use clear, student-friendly communication. |
| Tuition guarantee programs | Lock in tuition rates to offer cost predictability. | Advertise early to influence enrollment decisions. |
| Re-enrollment outreach | Contact stop-outs and offer re-enrollment incentives (fee waivers, financial counseling, etc.). | Maintain an alums/dropout database, and ensure the messaging is empathetic. |
4. Key Metrics to Monitor
Tracking results helps institutions measure what’s working and where to focus resources:
- Rates of food, housing, and technology insecurity
- Frequency and amount of emergency fund disbursements
- Enrollment trends (new, returning, and dropouts)
- Retention from semester to semester
- Average credit load per student
- Time taken to complete a credential or degree
- Utilization rate of support services
5. Conclusion and Recommendations
Supporting students through financial hardship isn’t just the right thing to do — it’s essential to institutional success and workforce development. By stabilizing students’ financial and basic needs, community colleges strengthen retention, boost completion rates, and expand the local talent pipeline.
Recommendations at a glance:
- Launch emergency funding and wraparound basic needs support.
- Simplify financial aid processes and provide proactive advising.
- Offer flexible delivery modalities (online, hybrid, evening) for more options.
- Partner with local service organizations to expand resources.
- Monitor outcomes and scale initiatives that drive retention and completion.
For continuing education and healthcare program leaders, these efforts strengthen both student success and the skilled workforce your community depends on.
How AAPC Can Help
AAPC partners with community colleges and universities to support student success through affordable, job-ready education. From curriculum alignment and faculty resources to certification pathways and employer connections, AAPC helps institutions bridge the gap between education and employment — to prepare students for in-demand healthcare careers.
About AAPC
As the gold standard for medical coding and billing, an AAPC certification is the healthcare industry’s official recognition of expertise and achievement. Our education solutions facilitate high pass rates by providing learning materials that prepare students for their certification exams and equip them for their future roles. With offerings like curriculum licensing, bootcamps, instructor certification, and classroom software and materials, we support institutions in preparing their students for successful careers in healthcare. Learn more by visiting aapc.com/partner.
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