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Group of students of different ethnicities walking in the street with school books in summer

Community colleges are often limited in the ways they can fund student support services, according to a new survey.

Samuel Perales Carrasco/iStock/Getty Images

Today’s college students face a variety of challenges in their pursuit of a credential or degree, including basic needs insecurity, mental health concerns, financial instability and a lack of academic preparation.

To address these needs, more institutions are investing in wraparound supports that address threats to student retention and completion and meet students’ needs holistically.

Recent survey data from the Federal Reserve Bank of Richmond finds community colleges in the Fifth District (the Carolinas; Maryland; Virginia; Washington, D.C.; and part of West Virginia) have had to make strategic resource allocation decisions and work with diverse funding sources to provide these services.

Methodology

The Richmond Fed’s Survey of Community College Outcomes was created in 2022 to survey institutions across the district and gauge outcomes of community college students. The full 2024 survey will be released later this month.

What’s the need: In conversations with leaders of community colleges, researchers found that the barriers to academic success were primarily nonacademic.

An April working paper from the Community College Research Center at Columbia University’s Teachers College identified mental health conditions as the greatest predictor of persistence among students enrolled at public two-year colleges. EdSights identified a similar trend in its fall 2023 data, with students at two-year institutions more likely to report financial distress and stress.

CCRC found most student success interventions for community college students address financial and academic needs.

Providing aid: Wraparound supports, as defined the report, include academic advising, mental health counseling, childcare assistance, financial literacy programs and career services.

Many community colleges operate on limited budgets, relying heavily on local, state and federal funds, which do not cover wraparound supports, according to the report. Grants can be competitive and some policy restrictions can limit how funds can be allocated, as well. Some decision-makers also lack clarity on the importance of these services, which can result in a preference for funding direct educational costs versus support services.

The Richmond Fed’s survey found many colleges established their own foundations to provide financial assistance for students and fundraise. Among respondents, five funding streams emerged as trends:

  1. State and federal grants. Government funding through targeted grants like the Strengthening Institutions Program, the Student Support Services Program and the Postsecondary Student Success Grant can enhance services at two-year institutions.
  2. Private donations and foundations. Alumni and local foundations can help fund scholarships and mental health interventions. Community engagement in fundraising can also foster a sense of ownership and investment in the college beyond the allocated dollars.
  3. Partnerships. Nonprofits, local business and social services agencies work alongside community colleges to provide support for students. One area in which students often need support is transportation, and having a collaboration with the public transportation authorities can provide free or low-cost options.
  4. Revenues. To fund student supports, oftentimes colleges will create specific fees, similar to a student activity fee or technology fee.
  5. Operational funding. Another common strategy is dedicating a portion of operational budgets for staffing, programming or other initiatives to deliver support services. State funding formulas can make this challenging, however, because community colleges often have a higher head count than full-time enrollment, which stretches dollars.

How does your college or university fund student success initiatives? Tell us more here.

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