BRIDGING FINANCIAL WELLNESS

AND STUDENT SUCCESS:

EFFECTIVE MODELS FOR COMMUNITY COLLEGES
TABLE OF CONTENTS
ACKNOWLEDGEMENTS....................................................................................................................................................................... 1

FOREWORD FROM ACCT PRESIDENT AND CEO............................................................................................................................ 2

EXECUTIVE SUMMARY........................................................................................................................................................................ 3

INTRODUCTION...................................................................................................................................................................................... 4

STUDENTS’ FINANCIAL NEEDS AND CHALLENGES.................................................................................................................... 5

FINANCIAL AID INTERVENTIONS..................................................................................................................................................... 7

FRAMEWORKS FOR FINANCIAL EDUCATION................................................................................................................................ 8

STUDENTS’ FINANCIAL KNOWLEDGE........................................................................................................................................... 10

COLLEGES’ ROLE IN BRIDGING FINANCIAL WELLNESS AND STUDENT SUCCESS............................................................ 13

CONCLUSION........................................................................................................................................................................................ 19

ENDNOTES............................................................................................................................................................................................ 20
ACKNOWLEDGEMENTS
This report was researched and written by Association of Community College Trustees (ACCT) Senior Policy Analyst
Allison Beer and Associate Writer Jacob B. Bray.

The authors are grateful for the coordination and guidance provided by ACCT Senior Vice President Jee Hang Lee.
We also thank the community college faculty and leaders who contributed to the profiles and data analysis included
in this paper. The insights and experiences they shared were critically valuable to this work.

Finally, we would like to thank the Guardian Life Insurance Company of America (Guardian) for their generous
support for this project. We especially appreciate the support from Guardian’s Director of Corporate Social
Responsibility, Veena Jayadeva. We also thank Michael Carren for his guidance on this paper.

ACCT is a non-profit educational organization of governing boards representing more than 6,500 elected and
appointed trustees who govern over 1,100 community, technical, and junior colleges in the United States and beyond.
These community professionals, business officials, public policy leaders, and leading citizens offer their time and
talent to serve on the governing boards of this century’s most innovative higher education institutions and make
decisions that affect more than 13 million students annually. For more information about ACCT, visit www.acct.org.

May 2020
Suggested citation: Beer, A. and Bray, J.B. (2020). Bridging Financial Wellness and Student Success: Effective Models
for Community Colleges. Washington, D.C. Association of Community College Trustees.

This report may only be reproduced or disseminated, in whole or in part, with proper attribution and within terms
of this Creative Commons license for noncommercial use: https://creativecommons.org/licenses/by-nc/3.0/us/

BRIDGING FINANCIAL WELLNESS AND STUDENT SUCCESS: EFFECTIVE MODELS FOR COMMUNITY COLLEGES 1
FOREWORD FROM ACCT PRESIDENT AND CEO
A student’s financial wellness and literacy are key to their success while enrolled, and after graduation. Students need
to be aware of the short- and long-term impacts of the financial decisions they make, and it is in an institution’s best
interests to give students easy, digestible access to this information to equip them with the skills for sound financial and
educational planning.

We began work on this project in 2019. The release of the final report has coincided with the international coronavirus
pandemic, which has placed unforeseen health and financial strains on America’s college students. The crisis has
elevated the importance of ensuring students’ financial well-being as current and former students struggle to navigate
the turbulent financial waters before them. Now and in the coming months, students will be faced with myriad financial
challenges. Community colleges have an opportunity to ensure that students are prepared to make informed decisions,
and that students have access to the resources they need to continue their educations and pay for living essentials.

Strong supports from the federal and state levels will greatly affect how well community colleges are able to support
students in this time of need. We hope those who influence these supports as well as community college leaders will
benefit from the information and analysis in this report. The highlighted strategies and programs are of tremendous
value, and we look forward to a proliferation of similar and new, innovative programs to guide students to long-term
financial success and wellbeing.

J. Noah Brown

2 BRIDGING FINANCIAL WELLNESS AND STUDENT SUCCESS: EFFECTIVE MODELS FOR COMMUNITY COLLEGES
EXECUTIVE SUMMARY
Community college students face a number of financial decisions and obligations along the path to degree completion.
Students must secure resources to pay for college expenses, including their tuition, fees, and basic living necessities.
Central to this is students’ abilities to access financial aid resources including federal, state, and institutional aid.
Colleges also play a role in providing clear and timely financial education to ensure students are aware of available
resources and have a strong foundation in personal financial management. Existing research on students’ financial
wellness typically separates financial aid and financial education approaches. For this report, our aim is to address both
categories to offer community colleges strategies for holistic supports. Key takeaways from the report include:

1) Community college students’ expenses often exceed available grant aid. Community college tuition is
known for being relatively affordable; however, the cost of tuition and living expenses is typically greater than the
amount of grant aid students receive and their available resources for paying out of pocket. According to College
Board researchers, on average, community college students spend approximately $14,700 per year on room and
board, books and supplies, transportation, and other living expenses.1 However, other research suggests that many
community college students likely spend more than this amount on living expenses, especially those who are
independent and those who are financially responsible for a family. According to data from the U.S. Department
of Education 2016 National Postsecondary Student Aid Study (NPSAS), nearly three-quarters have unmet financial
need to pay for expenses, or the difference between their expected family contribution as calculated by the federal
Free Applicational for Student Aid (FAFSA) and their awarded grant aid.2 Sufficient federal and state financial aid
resources are necessary to meet students’ financial needs. Colleges can also support students with financial aid
interventions such as emergency grant aid, institutional balance forgiveness, and improved information.

2) F
 inancial literacy can be a critical topic for students seeking to navigate the complex nature of college
financing and personal expenses; but is not a replacement for financial aid resources. Financial education
combined with sufficient aid can help empower students to make complex financial decisions associated with
attending college. Recommendations by the U.S. Financial Literacy and Education Commission (FLEC) and the U.S.
Consumer Financial Protection Bureau emphasize that financial education must provide students with clear, timely,
and targeted information. 3 To provide relevant financial education, community colleges must consider the varied
skill sets and knowledge among their students. While recent high school graduates may benefit from financial
education on foundational skills such as budgeting and saving, older students who have gained basic skills through
life experiences are more likely to benefit from courses that address complex financial situations, such as managing
family finances while attending college. Overall, community college students’ self-reported knowledge of financial
management demonstrates opportunity for improvement, especially in comparison to their peers in the four-year
university sectors. 4

3) T
 his report highlights the Guardian Money Management for Life (MMFL) Program as an example of
a personal finance course that has expanded to a financial empowerment model to provide students
with holistic support services. The program began as a free, credit-bearing personal finance course, focusing
on basic financial management topics such as budgeting, tax filing, and setting financial goals. Among students
who participated in the course from 2015 to 2019, 75% report having a better understanding of personal financial
management. Recognizing that when students’ basic financial needs are met, they are more likely to succeed
academically, several MMFL partner colleges have expanded to a holistic financial wellness model. We include
profiles of three such colleges: The University of the District of Columbia Community College in Washington, D.C.;
Berkshire Community College in Massachusetts; and Capital Community College in Connecticut. These colleges have
expanded services to include personal financial and career coaching, referrals to community-based organizations,
and financial aid interventions, and these colleges are moving towards developing or expanding one-stop financial
empowerment centers where students receive resources for financial education, aid, and career development.

BRIDGING FINANCIAL WELLNESS AND STUDENT SUCCESS: EFFECTIVE MODELS FOR COMMUNITY COLLEGES 3
INTRODUCTION
For many community college students, navigating financial resources and obligations can be a critical component of
their academic success. Starting with the basics, students must secure financial resources to pay for their direct academic
expenses, such as tuition, institutional fees, books, and supplies. Beyond direct academic expenses, non-academic
expenses such as housing, food, transportation, and childcare are often students’ greatest financial obligations.

Existing research on how students pay for academic and non-academic expenses typically falls within two categories.
The first category of research looks at the impacts of students’ access to financial aid, including grants and loans, and
what portion of their expenses must be paid out of pocket. A second category of research focuses on students’ financial
literacy and how their individual financial knowledge impacts their decision making, spending, and borrowing. In this
white paper, our goal is to bridge these two categories of research and demonstrate how community colleges use both
financial aid and financial education strategies to support students succeed academically.

In the first part of this paper, we examine the existing literature and data on community college students’ academic
and non-academic expenses, their access to financial aid, and their unmet needs. We provide examples of financial
aid interventions to demonstrate how colleges can support students’ financial needs when they lack resources to pay
for college expenses. Furthermore, we examine the research on students’ financial knowledge and frameworks for
financial education.

In the second part of this paper, we present data on students participating in the Guardian Money Management for Life
(MMFL) program, a financial empowerment program offered at several community colleges that provides students with
both financial management education and expanded access to financial aid and services. We include profiles of three
community colleges participating in the MMFL program: The University of the District of Columbia Community College
in Washington, DC; Berkshire Community College in Massachusetts; and Capital Community College in Connecticut.
These colleges were chosen because of their successes in expanding the MMFL personal finance course into a broader
student success initiative that connects students to campus and community resources.

4 BRIDGING FINANCIAL WELLNESS AND STUDENT SUCCESS: EFFECTIVE MODELS FOR COMMUNITY COLLEGES
STUDENTS’ FINANCIAL NEEDS AND CHALLENGES
For many community college students, academic success and completion can hinge on meeting financial needs.
Community colleges are known for their relatively low tuition and fees, yet these expenses can be a burden for students
who receive insufficient financial aid. In addition to tuition and fees, community college students face several large
expenses, such as housing and living expenses, that make up the bulk of their total cost of attendance. According to
a 2019 study conducted by researchers at North Carolina State University, paying for expenses is a top concern among
community college students.5

When students’ financial needs go unmet, they are more likely to face challenges to completing their degrees and
are at greater risk of stopping out—temporarily suspending their studies, usually because of life obstacles—or
dropping out entirely.6 However, programs that address students’ holistic financial and academic needs are known
to lead to greater student success—such as the City University of New York Accelerated Study in Associate Programs
(CUNY ASAP), which has been found to increase credit completion and double graduation rates for participating
students, in comparison to non-participating students.7 The following provide a closer look at students’ full costs of
attending college and the prevalence of unmet need, which colleges must consider to develop or improve their own
support programs.

College Costs
According to researchers from the College Board, for the 2019 – 20 academic year, the average price of tuition at public
two-year colleges was approximately $3,700. Over the past 10 years, community college tuition has risen beyond the
rate of inflation. Furthermore, the cost of tuition varies widely from state to state. For example, California has the lowest
average community college tuition in the country ($1,400) while Vermont has the highest ($8,200).8 The steady increase
in tuition and variability from state to state can largely be attributed to state divestment in higher education. According
to researchers from the State Higher Education Executives Officers Association (SHEEO), on average, state higher
education appropriations per full-time student remain lower than levels prior to the Great Recession of 2008 and vary
greatly among states.9

In addition to tuition, community college students face many high expenses—such as food, housing, childcare, and
transportation. According to College Board researchers, on average, community college students spend approximately
$14,700 per year on room and board, books and supplies, transportation, and other living expenses.10 However, other
research suggests that many community college students likely spend more than this amount on living expenses,
especially those who are independent and those who are financially responsible for a family. According to researchers
from the National Low-Income Housing Coalition, in 2019 the average fair market rent was $970 per month ($11,600
per year) for a one-bedroom apartment and $1,200 per month ($14,400 per year) for a two-bedroom apartment.11
Furthermore, for students with young children, the cost of childcare can far exceed other monthly expenses. According
to an analysis by researchers at the Center for American Progress, the average cost of center-based childcare for an
infant is over $1,200 per month.12
cost of rent?

BRIDGING FINANCIAL WELLNESS AND STUDENT SUCCESS: EFFECTIVE MODELS FOR COMMUNITY COLLEGES 5
Unmet Financial Need
Insufficient financial aid and high cost-of-living expenses contribute to the prevalence of unmet financial need among
community college students. For this report, we define unmet need as the difference between a student’s calculated
expected family contribution determined by the federal Free Applicational for Student Aid (FAFSA) and their awarded
grant aid. While over one-third of community college students receive a federal Pell Grant, according to data from
the U.S. Department of Education 2016 National Postsecondary Student Aid Study (NPSAS), the maximum award of
approximately $6,500 often is not enough to pay for students’ full cost of attendance. NPSAS data reveal that nearly
three-quarters of community college students have unmet financial need to pay for college expenses—on average
$7,000 per year. Black, Hispanic, first-generation, and independent students are most likely to have unmet financial
need, demonstrating the need for colleges to provide additional resources to these groups of students. The following
graph demonstrates the difference in the prevalence of unmet need between student groups.

Community College Students with

Unmet Financial Need
100

90
82
76 77 76
80
72
66
70
Percent of Students

60

50

40

30

20

10

0
All White Black or Hispanic or First Independent
African Latino Generation
American

Source: Authors’ analysis of NPSAS ‘16

6 BRIDGING FINANCIAL WELLNESS AND STUDENT SUCCESS: EFFECTIVE MODELS FOR COMMUNITY COLLEGES
FINANCIAL AID INTERVENTIONS
Community college students rely on federal and state financial aid programs to pay for their college expenses; however,
colleges also play a role in implementing campus-based financial aid interventions to support students, especially in
times of emergencies. Here, we present three different financial aid interventions that colleges can implement to support
students ability to pay for college and better understand available resources—and ultimately support their persistence
through college toward earning their degree.

Emergency Aid
Emergency aid is comprised of resources that colleges provide to students in times of emergency or unexpected need.
According to the National Association of Student Personnel Administrators, colleges typically offer emergency aid in the
form of grants, loans, vouchers for campus services, and access to food pantries.13 By providing emergency aid, colleges
can act quickly to support students facing financial challenges—such as a medical bill, housing costs, or transportation
needs—that is standing in their way of paying for tuition or being able to continue attending courses.

Institutional Balance Forgiveness

Paying off institutional balances, or institutional debts, is a common barrier faced by students as they attempt to persist
through college. Community colleges across the country have implemented balance-forgiveness programs to support
students who are in good academic standing, but who owe money to the college, such as for a past-due tuition or fee
payment, that prevents them from enrolling in future courses. By forgiving balances, colleges can help students remain
enrolled in college or support re-enrollment after students stop out.14

Improved Financial Aid Information

College financial aid is a complex system of grant, scholarship, and loan programs provided by the federal and state
governments, colleges, and private organizations. In addition to being a complex system, students frequently face
challenges to finding clear and consistent information about the financial resources available to them. Researchers
from New America, a think tank and advocacy organization, and uAspire, a national nonprofit seeking to improve
financial aid information for students, conducted a study to examine one way that many students first receive financial
aid information: award letters. Their national study found that award letters often contained confusing jargon, failed to
differentiate between grants and loans, and omitted a clear calculation of students’ costs of attendance.15 These findings
demonstrate the need for colleges to provide students with clear information about available resources and increase
access to financial counseling services that support students decisions about their financial responsibilities and goals.

BRIDGING FINANCIAL WELLNESS AND STUDENT SUCCESS: EFFECTIVE MODELS FOR COMMUNITY COLLEGES 7
FRAMEWORKS FOR FINANCIAL EDUCATION
Financial literacy can be a critical topic for students seeking to navigate the complex nature of college financing and
personal expenses. To be sure, financial literacy skills are not a replacement for financial aid resources that improve
college affordability. However, combined with sufficient aid, financial literacy skills can empower students to make
complex financial decisions associated with attending college. For most students, these decisions include how to pay
for tuition, fees, and living expenses—such as through the combination of aid and money earned from work. For many
adult learners attending community college, these decisions also include how to pay for necessities such as childcare
and other family expenses.

To support colleges in preparing students for financial decision -making, the U.S. Financial Literacy and Education
Commission (FLEC) has developed best practices for teaching financial literacy and providing financial aid information.
This commission was established in 2003 and is led by the U.S. Treasury Department and includes representatives from
federal agencies, including the U.S. Department of Education and the White House Domestic Policy Council. In 2019,
FLEC issued a report16 that details five financial literacy best practices for higher education institutions, including to:

1. Provide clear, timely, and customized information to inform student borrowing;

2. Effectively engage students in financial literacy and education;

3. Use data to target different student populations;

4. Communicate the importance of graduation and major on the repayment of student loans; and

5. Prepare students for financial obligations upon graduation.

A central theme of FLEC’s recommendations is the connection between students’ financial and academic successes.
While pursuing their educations, students’ abilities to access and clearly understand their financial aid can improve
their abilities to complete their degrees in a timely manner. Ultimately, timely completion positively impacts a student’s
ability to earn higher wages and successfully repay student loans.17 FLEC’s recommendation is supported by prior
ACCT research, which has found that students who do not complete their degrees are most likely to default on
loan repayment.18

In addition to the FLEC recommendations, the U.S. Consumer Financial Protection Bureau (CFPB) has developed
principles for effective financial education.19 These principles are not specific to higher education institutions, yet they
can help inform how colleges work to ensure students’ financial well-being. The five CFPB principles are as follows:

1. Know the individuals and families to be served;

2. Provide actionable, relevant, and timely information;

3. Improve key financial skills;

4. Build on motivation; and

5. Make it easy to make good decisions and follow through.

8 BRIDGING FINANCIAL WELLNESS AND STUDENT SUCCESS: EFFECTIVE MODELS FOR COMMUNITY COLLEGES
According the CFPB, the goal of adhering to these principles is to support people’s financial well-being in such a
way that they can enjoy both “financial security and financial freedom” in the present and future. Unfortunately,
many college students are unable to achieve this level of financial well-being. As described in the previous
sections, many community college students face large unmet need to pay for academic and living expenses and
have not been exposed to basic financial literacy knowledge.

Researchers from the Center for Community College Student Engagement (CCCSE) at the University of Texas used
national data on students’ financial needs and their comfortability with financial management to develop a guide
for community colleges to implement financial education on campus. According to the data from the center’s
2016 student financial health survey, over 80% felt they had the skills and knowledge to manage their personal
finances; however, students’ budgeting and financial planning practices varied widely. Furthermore, over a quarter
of respondents felt they need more information from their colleges about financial assistance.20 The difference
between students’ assessments of their financial knowledge and their actual practices could be an indicator
that students do not have enough financial resources and highlights the needs for colleges to thoroughly assess
students’ knowledge and practices in order to design successful financial interventions. Based on the survey,
CCCSE researchers recommend that colleges develop financial education programs using data on students’ financial
needs and understanding of financial management; training faculty and staff to provide supports; partnering with
community organizations; connecting with students through outreach efforts; and incorporating financial education
in academic course curriculum.21

BRIDGING FINANCIAL WELLNESS AND STUDENT SUCCESS: EFFECTIVE MODELS FOR COMMUNITY COLLEGES 9
STUDENTS’ FINANCIAL KNOWLEDGE
For colleges to implement successful financial education programs, it is important to understand students’ existing levels
of financial knowledge. For example, students who enter college directly from high school without prior exposure
to financial education may need to learn financial management basics, such as budgeting and saving. Most students
who enter college directly from high school are unlikely to have participated in a formal financial education course.
According to a survey by the Council for Economic Education, as of 2020, only 21 states require students to take a
personal finance course.22 Despite the lack of financial education in high schools, older students are likely to gain
financial management skills through personal life experiences and are more likely to benefit from supports that address
complex financial situations, such as managing family finances while attending college.

Nationally, college students demonstrate relatively low levels of financial literacy, highlighting the need for additional
education and resources to be made available on campuses. The need is especially high for community college
students, who demonstrate lower levels of financial literacy than peers from other higher education sectors. As part of
the 2016 NPSAS survey, students were asked three questions on financial literacy concepts of inflation, savings, and risk
diversification. Only 25% of community college students answered all three questions correctly, compared to 32% of
students attending public four-year colleges and 33% of students attending private four-year colleges. Students attending
for-profit colleges were the only group of students to answer fewer questions correctly.23

Students’ Understanding of Financial Literacy

Concepts: Sector Comparison
100

90 19
25
32 33
80

70
Percent of Students

60

50

40 81
75
68 67
30

20

10

0
Public 4-year Public 2-year Private nonprofit Private for profit
4-year 4-year

Sector

Did not answer all correctly Answered all correctly

Source: Authors’ analysis of NPSAS ‘16

10 BRIDGING FINANCIAL WELLNESS AND STUDENT SUCCESS: EFFECTIVE MODELS FOR COMMUNITY COLLEGES
Data from the same survey also indicate varying levels of financial literacy among different demographic groups of
community college students, notably by income and dependency status. Only 21% of low-income community college
students answered all three questions correctly, compared to 34% of high-income students. One explanation for this
difference may be students’ financial constraints to participate in financial education courses prior to attending college,
especially if not offered through the K-12 education system. According to NPSAS data, independent community college
students (29% answered correctly) demonstrate higher levels of financial literacy compared to their dependent peers
(19% answered correctly), likely because they have gained financial literacy skills through life experiences. These
differences highlight the need for colleges to tailor financial education based on their student populations.

Students’ Understanding of Financial Literacy

Concepts: Community College Students
100
90 21 21 25
34
Percent of Students

80
70
60
50
40 79 79
75 66
30
20
10
0
Bottom quartile Lower-middle quartile Upper-middle quartile Top quartile

Income
Did not answer all correctly Answered all correctly
Source: Authors’ analysis of NPSAS ‘16

Students’ Understanding of Financial Literacy

Concepts: Community College Students
100
Percent of Students

19 29
80
60
40 81 71
20
0
Dependent Independent
Dependency Status

Did not answer all correctly Answered all correctly

Source: Authors’ analysis of NPSAS ‘16

BRIDGING FINANCIAL WELLNESS AND STUDENT SUCCESS: EFFECTIVE MODELS FOR COMMUNITY COLLEGES 11
In addition to general financial literacy concepts, students participating in the 2016 NPSAS survey were also asked
questions to assess their respective levels of student loan literacy. The questions assessed students’ knowledge of
the consequences of unpaid debt, including negative credit history reporting, wage garnishment, and tax and Social
Security benefit garnishment. Students demonstrated higher levels of loan literacy compared to general financial literacy.
Across most higher education sectors, including public 2-year colleges, approximately 40% of students answered all
three questions correctly.24

Students’ Understanding of Loan Literacy

Concepts: Sector Comparison
100

90

80 39 38 40
53
70
Percent of Students

60

50

40

30 61 62 60
47
20

10

0
Public 4-year Public 2-year Private nonprofit Private for profit
4-year 4-year

Sector

Did not answer all correctly Answered all correctly

Source: Authors’ analysis of NPSAS ‘16

12 BRIDGING FINANCIAL WELLNESS AND STUDENT SUCCESS: EFFECTIVE MODELS FOR COMMUNITY COLLEGES
COLLEGES’ ROLE IN BRIDGING FINANCIAL WELLNESS AND
STUDENT SUCCESS
Colleges play a significant role in helping students access and manage financial resources. As described in the prior sections
of this report, access to adequate financial aid is a determinant of students’ abilities to persist through college and complete
their degrees. Financial education is important to help students better understand financial resources; however, education
alone is not enough to support students’ academic successes. One initiative designed to provide both financial education and
resources is the Guardian Money Management for Life (MMFL) program.

Guardian started the MMFL program in 2013 by partnering with community colleges across the country to offer a free, credit-
bearing personal finance course. The course focuses on introducing students to basic financial management topics such as
budgeting, tax filing, and setting financial goals. Since its creation, the MMFL program has expanded to encompass a holistic
financial wellness model. Partner colleges have expanded services to include personal financial and career coaching, referrals
to community-based organizations, and financial aid interventions—in particular, balance forgiveness. As next steps, several
colleges are planning or expanding one-stop financial empowerment services, where students receive resources for financial
education, aid, and career development.25

Students in the MMFL course complete a self-assessment survey of their understanding of personal finances before and after
participating. We analyzed the survey data of community college students who participated in the course from 2015 through
2019.26 We found that approximately 75% of students who completed a post-survey indicated they were much better prepared
to manage their personal finances as a result of taking the course. Students rated their understandings of financial management
on a scale of 0 – 10, with 0 indicating no understanding and 10 indicating full understanding. We found that, on average,
students rated their personal understanding 2.7 points higher after completing the course. This trend was seen consistently
among each cohort of participating students. The following graph provides data for each year of participating students.

Money Management for Life Students’

Understanding of Personal Finance
10.0
9.0 8.3 8.1 8.0 7.8 7.9
8.0
7.0
Self-Score (0-10)

5.9 5.7
6.0 5.2
5.1
4.7
5.0
4.0
3.0
2.0
1.0
0.0
2015 2016 2017 2018 2019

Average Score by Cohort Year

Pre Post

Source: Authors’ analysis of MMFL Cumulative Survey Data

BRIDGING FINANCIAL WELLNESS AND STUDENT SUCCESS: EFFECTIVE MODELS FOR COMMUNITY COLLEGES 13
Educating students on personal finances is one tool colleges can use to support students in managing the complex
financial obligations associated with attending and succeeding in college. Beyond education, colleges also serve a
critical role in providing students with financial resources and support services. We interviewed representatives from
three community colleges that implement the MMFL program to find out how each institution can bridge students’
financial wellness to academic success. The following section includes profiles of MMFL programs at the University of
the District of Columbia Community College, Berkshire Community College, and Capital Community College. These
colleges were chosen because of their success in expanding the MMFL personal finance course into a broader student
success initiative that connects students to campus and community resources.

University of the District of Columbia

For the University of the District of Columbia Community College (UDC-CC) in Washington, D.C., the issue of financial
literacy became a priority in a response to research showing the widening income and wealth gaps between White and
Black Americans. For example, research by the National Urban League shows that Black Americans are approximately
50% economically less well-off than White Americans.27 Racial economic inequality is particularly stark in Washington,
D.C., where the median wealth among White households is 80 times higher than it is among Black households.28
Recognizing the need to support the financial well-being of UDC-CC’s predominately Black student population, college
leaders sought to partner with Guardian and bring the MMFL program to campus in 2015. To learn more about the
MMFL program at UDC-CC, we spoke with Scott King, associate professor and director of the division of business and
education, and Albert Pearsall, assistant professor of business.29

The MMFL program at UDC-CC focuses on financial goal setting, saving, investing, managing debt, and retirement,
among other topics. As part of the course, students create their own financial plans and have opportunities to meet
visiting speakers from nearby federal government agencies that deal with the economy, such as the U.S. Securities and
Exchange Commission. King and Pearsall have integrated other experiential learning opportunities into the course.
These opportunities have included trips to the Federal Reserve in Richmond, Virginia, to Guardian headquarters in
New York City, and to historic sites related to Black Americans’ roles in finances, including the home of businesswoman
Maggie Walker. Based on initial success of the program, starting in 2017, the college began to require the class for all
business students and expanded the course as an elective available to all other UDC-CC students.

Through teaching the course, Pearsall witnessed that many students had limited backgrounds in financial education.
This challenge promoted King and Pearsall to seek partnerships with local D.C. financial agencies and K-12 schools to
improve financial knowledge among UDC’s pipeline of students and to support more individuals throughout the city.
As of 2019, UDC-CC partners with five high schools and has plans to expand to 30 schools within the next three years.
Furthermore, Pearsall serves as co-chair of the student committee of the D.C. Financial Literacy Council, which seeks to
improve financial literacy among all D.C. residents.

King and Pearsall expressed how the UDC financial education course can be a foundation of academic and career
success for participating students. We analyzed institutional data of participating students and found that the cohorts
from 2015 through 2019 had an average GPA of 2.7 and had completed 80% of their attempted credits. For the UDC-
CC cohort of MMFL students, outcomes were similar for those who received financial aid compared to those who did
not. One explanation for this may be that a large share of the participating students at UDC-CC are dually enrolled
through their high schools, and therefore do not face the same financial circumstances as adult college students who
link their abilities to access aid to their academic successes. Beyond quantitative metrics, King and Pearsall explain that
many students in the course demonstrate academic engagement through their interest in pursuing further education
by transferring to a four-year university and pursing graduate education. Many participating students also demonstrate
engagement by taking early steps to plan for their future careers.

14 BRIDGING FINANCIAL WELLNESS AND STUDENT SUCCESS: EFFECTIVE MODELS FOR COMMUNITY COLLEGES
Going forward, King and Pearsall are working on expanding supports to students by bringing a financial
empowerment center on campus which will leverage partnerships with D.C. government agencies, non-profit
organizations, and the private sector. The financial empowerment center would go beyond the current financial
education course by supporting students with personal finance, development of entrepreneurship, and career
education. They are also working with the college’s student success office to implement new financial interventions
to support students’ degree completion, such as balance forgiveness for students at risk of stopping out. With these
new programs, King and Pearsall hope to make financial wellness a greater part of UDC-CC’s overall student
support culture.

Outcomes for UDC-CC MMFL Students

ALL PARTICIPATING STUDENTS RECEIVED ANY FINANCIAL AID

Average GPA 2.7 2.7

Average Percent of Credits

80% 81%
Completed vs. Attempted

Berkshire Community College

At Berkshire Community College (BCC), located in Berkshire County, Massachusetts, nearly 70% of students receive
federal Pell Grants. Among those students, about half have a zero expected family contribution, which means a
student and their family has no ability to pay for college expenses based on the FAFSA needs assessment. For these
students, access to financial aid and other financial resources can be the difference between their academic success
and stopping out or dropping out. Furthermore, BCC serves a key role in providing community services as the only
community college in Berkshire County, a predominately low-income area. Recognizing the great financial need
among their student body and the broader community led BCC to expand their financial education and support
services on campus, including by partnering with Guardian and starting an MMFL program. To learn about the
MMFL program at BCC, we spoke with Nancy Stoll, special program coordinator for financial literacy, and Adam
Klepetar, vice president for student affairs and enrollment management.30

Through their partnership with Guardian, BCC offers academic supports through a personal finance class and
finance forums that are free and open to students and members of the community. The course and the forums
focus on financial topics that include basics of setting financial goals and budgeting; investing and building savings;
and maintaining good credit. The course is offered in a traditional on-campus format as well as online, in local high
schools, and at a BCC satellite campus. Approximately 40 students take the course each semester and enrollment
is diverse, including recent high school graduates who are being exposed to many of these topics for the first time
and older students seeking to build their financial capabilities.

BRIDGING FINANCIAL WELLNESS AND STUDENT SUCCESS: EFFECTIVE MODELS FOR COMMUNITY COLLEGES 15
Over time, the MMLF program has expanded to offer several non-academic supports to help meet students’ financial
needs. One new initiative is a balance forgiveness program that provides scholarships to students who are at risk of
not completing their degrees due to challenges that prevent them from paying off an outstanding bill to the college.
All students who receive balance forgiveness are also strongly recommended to enroll in the personal finance course
and one-on-one coaching. At the outset of the balance forgiveness program, Stoll and Klepetar were surprised to
learn that students’ interest in receiving balance forgiveness was lower than expected. In response, they re-evaluated
requirements of the scholarship that were possibly restricting students from participating, such as enrolling full-time
and paying half of the debt out of pocket. Since relaxing these requirements, the college has been able to attract
more students to participate and better meet their financial needs. Other non-academic supports that BCC is offering
as part of their MMFL program include paid internships and financial wellness coaching to provide individualized
support to students to set financial and academic goals leading to degree completion.

Stoll and Klepetar recognize that students are more likely to succeed academically when they have few financial worries
and their basic needs are met. We analyzed institutional data of credit-seeking students who participated in the course
from 2014 through 2019. We found that those who took the course and received a form of financial aid experienced
the greatest levels of academic success. Notably, students who received aid had a 75% retention rate in comparison to
51% among all participating students. Though only a small number of students received balance forgiveness in this
timeframe, these students experienced the highest rate among the cohort, at 92%. Below is further comparison of
academic success indicators for participating students.

Moving forward, BCC is expanding their efforts to offer holistic financial empowerment services. One step is by
partnering with nearby colleges and non-profit organizations to collectively address students’ financial needs at the
community college, the four-year universities, and within their place in the community. Furthermore, BCC is in the
early stages of developing an on-campus financial empowerment center. Ultimately, the goal is for the center to serve
as a one-stop center for meeting students’ financial needs. Stoll and Klepetar describe these services as both financial
crisis prevention and proactive planning, both of which are key to supporting students’ financial wellness and their
academic success.

Outcomes for BCC MMFL Students

ALL PARTICIPATING RECEIVED ANY RECEIVED BALANCE
STUDENTS FINANCIAL AID FORGIVENESS

Average GPA 2.8 2.8 3.0

Retention Rate 51% 75% 92%

Average Percent of
Credits Completed 80% 81% 80%
vs. Attempted

16 BRIDGING FINANCIAL WELLNESS AND STUDENT SUCCESS: EFFECTIVE MODELS FOR COMMUNITY COLLEGES
Capital Community College
Capital Community College (CCC), in Hartford, Connecticut, serves a large population of non-traditional students
with financial needs beyond their tuition and individual living expenses. Many of these students face challenges
to paying for expenses such as childcare, transportation, and food and housing for their families. These student
challenges led CCC to expand their financial supports and education programs, including by starting a MMFL
personal finance course in 2013, which has since evolved to offer holistic financial supports. To learn about the
MMFL program at CCC, we spoke with Hannah Gregory, program coordinator for the FIRST Center.31

The three-credit personal finance course is free of charge for students. The course teaches fundamentals of financial
literacy including budgeting, filing taxes, building credit, and banking. Beyond the fundamentals, the course teaches
topics of relevance for older, non-traditional students, such as long-term savings and investing. Students enrolled in
the course also have an opportunity to learn from financial professionals, including representatives from Guardian.
Though the course is not required for students, it can count toward degree completion. One challenge that CCC is
addressing is how to better incorporate the course into a guided-pathways model so students are encouraged to take
the personal finance course without accumulating unnecessary credits.

To better ensure that students’ participation in the personal finance course is linked to their overall college success,
Gregory eventually would like to implement a system to track the outcomes of students who have enrolled and
completed the course. One challenge is that the course tends to attract students who are already high-achieving
and more likely to be persisting toward degree completion. CCC currently requires that MMFL students have an
approximately 2.8 GPA to participate. We analyzed institutional data of credit-seeking students who participated
in the course from 2013 through 2019. We found that the retention rate among this cohort was 73%. Students who
participated in the course and received financial aid had a much higher retention rate of 88%, which may be an
indicator of the benefits of a holistic services approach to financial education and aid.

Over time, Gregory has led the effort to evolve the MMFL program from the personal finance course to an integrated
services model to address students’ holistic financial needs. CCC created an on-campus financial literacy center,
known as the FIRST Center, which offers services and resources including financial literacy workshops, coaching, tax
filing assistance, and a library of financial literacy materials. The center helps connect students to community-based
services and offering workshops by partnering with organizations including through the United Way, the Village for
Families & Children, Center for Urban Research, Education & Training, the Connecticut Women’s Education and Legal
Fund, and Hartford Community Loan Fund. A major effort is the Volunteer Income Tax Assistance program which
serves about 300-400 households and results in $1 million in tax refunds for Hartford families per tax season.

BRIDGING FINANCIAL WELLNESS AND STUDENT SUCCESS: EFFECTIVE MODELS FOR COMMUNITY COLLEGES 17
The center has also placed an emphasis on workforce development and went through a restructuring to merge
with the college-wide career services department. Gregory explained that this shift allowed the center not only to
assess students for services such as budget coaching, but also to offer wrap-around services to improve students’
career readiness. One way the FIRST Center helps support students’ career successes is by connecting them to paid
internships and apprenticeships with several large national companies based in Hartford. A goal for Gregory is to
offer more “high-touch services,” such as one-on-one financial coaching, which are more likely to have a positive
impact for participating students, compared to group-based or passive interventions.

Outcomes for CCC MMFL Students

ALL PARTICIPATING STUDENTS RECEIVED ANY FINANCIAL AID

Average GPA 3.2 3.1

Retention Rate 73% 88%

Average Percent of Credits

90% 91%
Completed vs. Attempted

18 BRIDGING FINANCIAL WELLNESS AND STUDENT SUCCESS: EFFECTIVE MODELS FOR COMMUNITY COLLEGES
CONCLUSION
Students’ financial wellness and literacy is key to their ability to manage the complex financial obligations they face
on the way to degree completion. Students need sufficient resources to pay for tuition, living expenses, and family
obligations. Throughout this report, we highlight several challenges community college students across the country
face to achieving financial wellness, including unmet financial need, insufficient information on financial resources, and
limited knowledge of financial literacy concepts. These challenges demonstrate the opportunity for colleges to support
students’ financial well-being with a combination of both financial aid and financial education.

In this report, we analyzed the outcomes of students who participated in the Guardian MMFL program. The MMFL
program combines financial education and additional supports, such as financial aid and individual counseling. We
found that students who participated in the MMLF personal finance course reported improved levels of understanding
of personal financial management. In addition, we found that many students who participated in the course and
received additional financial supports demonstrated higher levels of persistence toward degree completion.

The data and strategies in this report are intended to help colleges improve their own financial supports for students.
We encourage colleges to consider a holistic approach to ensuring students’ financial wellness. Financial education must
be paired with financial aid resources to help students persist toward degree completion. Colleges play a critical role in
ensuring students have access to resources, are provided with clear and consistent information, and are given the tools
to manage their complex financial lives.

BRIDGING FINANCIAL WELLNESS AND STUDENT SUCCESS: EFFECTIVE MODELS FOR COMMUNITY COLLEGES 19
ENDNOTES
1  a, J., Baum, S., Pender, M., and Libassi, C. (2019). Trends in college pricing 2019. New York, NY: College Board.
M
Retrieved from https://research.collegeboard.org/trends/college-pricing

2 A
 uthors’ analysis of United States Department of Education, National Center for Education Statistics, Institute of
Education Sciences. National Postsecondary Student Aid Study 2016. Retrieved from https://nces.ed.gov/surveys/npsas/

3 United States Financial Literacy and Education Commission. (2019). Best practices for financial literacy and
education at institutions of higher education. Washington, DC: United States Financial Literacy and Education
Commission. Retrieved from https://home.treasury.gov/policy-issues/consumer-policy/financial-literacy-and-
education-commission; United States Consumer Financial Protection Bureau. (2017). Effective financial education:
Five principles and how to use them. Washington, DC: United States Consumer Financial Protection Bureau.
Retrieved from https://www.consumerfinance.gov/data-research/research-reports/effective-financial-education-
five-principles-and-how-use-them/

4 Authors’ analysis of United States Department of Education, National Center for Education Statistics, Institute of
Education Sciences. National Postsecondary Student Aid Study 2016. Retrieved from https://nces.ed.gov/surveys/npsas/

5 Porter, S.R. and Umbach, P.D. (2019). What challenges to success do community college students face? Raleigh, NC:
Perconter, LLC. Retrieved from https://www.risc.college/blog/new-report-community-college-student-success

6 Goldrick-Rab, S. (2016). Paying the price: College costs, financial aid, and the betrayal of the American Dream. Chicago,
IL: University of Chicago Press; See also Holzer, H. and Baum, S. (2017). Making college work: Pathways to success
beyond high school. Washington, DC: Brookings Institution Press

7 Scrivener, S. et al. (2015). Doubling graduation rates: Three-year effects of CUNY’s Accelerated Study in
Associate Program (ASAP) for developmental education students. New York, NY: MDRC. Retrieved from
https://www.mdrc.org/publication/doubling-graduation-rates

8 Ma, J., Baum, S., Pender, M., and Libassi, C. (2019). Trends in college pricing 2019. New York, NY: College Board.
Retrieved from https://research.collegeboard.org/trends/college-pricing

9 Laderman, S. and Weeden, D. (2020). State higher education finance report 2019. Boulder, CO: State Higher Education
Executive Officers Association. Retrieved from https://sheeo.org/project/state-higher-education-finance/

 a, J., Baum, S., Pender, M., and Libassi, C. (2019). Trends in college pricing 2019. New York, NY: College Board.
10 M
Retrieved from https://research.collegeboard.org/trends/college-pricing

11 Aurand, A. et al. (2019). Out of reach. Washington, DC: National Low Income Housing Coalition. Retrieved from
https://reports.nlihc.org/oor

 orkman, S. and Steven, J.H.. (2018). Understanding the true cost of childcare for infants and toddlers. Washington,
12 W
DC: Center for American Progress. Retrieved from https://www.americanprogress.org/issues/early-childhood/
reports/2018/11/15/460970/understanding-true-cost-child-care-infants-toddlers/

13 Kruger, K., Parnell, A., and Wesaw, A. (2016). Landscape analysis of emergency aid programs. Washington, DC:
National Association of Student Personnel Administrators. Retrieved from https://www.naspa.org/report/landscape-
analysis-of-emergency-aid-programs

 embicki, M. (2019, June 20). Bringing students back through debt forgiveness. Community College Daily.
14 D
Retrieved from https://www.ccdaily.com/2019/06/bringing-students-back-debt-forgiveness/

15 h
 ttps://www.newamerica.org/education-policy/policy-papers/decoding-cost-college/

20 BRIDGING FINANCIAL WELLNESS AND STUDENT SUCCESS: EFFECTIVE MODELS FOR COMMUNITY COLLEGES
  nited States Financial Literacy and Education Commission. (2019). Best practices for financial literacy and education
16 U
at institutions of higher education. Washington, DC: United States Financial Literacy and Education Commission.
Retrieved from https://home.treasury.gov/policy-issues/consumer-policy/financial-literacy-and-education-commission

17 Ibid.

 ampbell, C. and Love, I. (2017). Lost in the trillion: A three-state comparison of community college borrowing
18 C
and default. Washington, DC: Association of Community College Trustees. Retrieved from https://www.acct.org/
product/lost-trillion-three-state-comparison-community-college-borrowing-and-default-2017; See also Campbell, C.
(2015). A closer look at the trillion: Borrowing, repayment, and default at Iowa’s community colleges. Washington,
DC: Association of Community College Trustees. Retrieved from https://www.acct.org/product/closer-look-trillion-
borrowing-repayment-and-default-iowas-community-colleges-2015

 nited States Consumer Financial Protection Bureau. (2017). Effective financial education: Five principles a
19 U
nd how to use them. Washington, DC: United States Consumer Financial Protection Bureau. Retrieved from
https://www.consumerfinance.gov/data-research/research-reports/effective-financial-education-five-principles-and-
how-use-them/

20 Center for Community College Student Engagement. (2017). Making ends meet: The role of community
colleges in student financial health. Austin, TX: The University of Texas at Austin. Retrieved from
https://www.ccsse.org/docs/Making_Ends_Meet.pdf

21 Ibid.

 ouncil for Economic Education. (2020). Survey of the states: Economic and personal finance education in our nation’s
22 C
schools. New York, NY: Council for Economic Education https://www.councilforeconed.org/survey-of-the-states-2020/

23 A
 uthors’ analysis of United States Department of Education, National Center for Education Statistics, Institute of
Education Sciences. National Postsecondary Student Aid Study 2016. Retrieved from https://nces.ed.gov/surveys/npsas/

24 Ibid.

25 Guardian Lifer Insurance Company of America. (2020). Helping communities thrive. Retrieved from https://www.
guardianlife.com/social-responsibility

26 G
 uardian Life Insurance Company of America. (2019). Money Management for Life cumulative survey data Fall 2015 to
Spring 2019. Unpublished raw data.

27 Wilson, V.R. (2017). Overview of 2017 National Urban League equality index. New York, NY: National Urban League.
Retrieved from http://soba.iamempowered.com/2017-equality-index

28 Gebriel, T. (2018). Economic inequality in DC reflects disparities in income, wages, wealth, and economic mobility.
Policy solutions should too. Washington, DC: DC Fiscal Policy Institute. Retrieved from
https://www.dcfpi.org/all/economic-inequality-in-dc-reflects-disparities-in-income-wages-wealth-and-economic-
mobility-policy-solutions-should-too/

29 A
 uthors’ interview with S. King, Associate Professor and Director of the Division of Business and Education, and
A. Pearsall, Assistant Professor of Business. The University of the District of Columbia Community College. 2019.

30 A
 uthors’ interview with N. Stoll, Special Program Coordinator for Financial Literacy, and A. Klepetar, Vice President for
Student Affairs and Enrollment Management. Berkshire Community College. 2019.

31 Authors’ interview with H. Gregory, Program Coordinator for the FIRST Center. Capital Community College. 2019.

BRIDGING FINANCIAL WELLNESS AND STUDENT SUCCESS: EFFECTIVE MODELS FOR COMMUNITY COLLEGES 21
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