The COVID-19 pandemic increased barriers to college access for low-income and historically underserved students. In addition, many students lack financial literacy skills to navigate the complex landscape of financial aid options, particularly students whose families lack college-going experience. President Biden’s recent decision to forgive student loan debt and proposals to increase the Pell Grant reflect concern around the rising overall cost of attendance and the financial burdens facing students and their families when paying for college.

Understanding changing federal policies and placing potential debt in context of lifetime earnings requires sophisticated financial literacy skills. Low-income and first-generation students in particular are unlikely to learn these skills in high school or from their family members. The Pell Grant only covers a fraction of the cost of attendance – most low-income students must take out loans in order to enroll in college and earn a four-year degree, yet many are ill-equipped with information about which type of loan is best, how to budget, and how to pay off loans.

The 16 APLU “Powered by Publics” (PxP) clusters, organized by region or topic, have been meeting since 2018 to identify high-impact practices for increasing student success and closing equity gaps. Two PxP clusters (3 and 11) chose to focus on financial wellness, a holistic umbrella that expands on financial literacy for students (see below for a list of institutions). The clusters also focused on completion grants, emergency aid, and affordable learning materials as part of their broader student financial wellness efforts.

Online financial literacy courses are required for students who take out federal loans. However, the holistic financial wellness framework these Clusters focused on also considers students’ personal and mental well-being and academic success. The Clusters have served primarily as platforms for sharing practices between institutions. Cluster 3 developed a position paper demonstrating the need for institutions to provide financial wellness programming as key to students’ successful outcomes.

Cluster 11 distributed a survey to its institutions to assess their financial wellness program components and structures. Survey respondents recommended incorporating financial literacy into an overarching student wellness framework using a culturally competent lens that recognizes the diverse life experiences of students and their families.

Below are examples of effective financial wellness models from institutions in both clusters:

• Mississippi State University requires “Maroon U,” a holistic online course, for all freshmen and transfer students. The course consists of 6 modules that provide information and resources for financial wellness, health and wellness, sexual violence, academic success, and resilience. Students can also make appointments with Maroon Money Mentors, peer mentors who have been trained in financial aid and budgeting topics.
• Auburn University offers an iGrad online leaning center provided by Regions Bank, which features podcasts on topics such as FAFSA. Auburn tested student knowledge before and after participation in different courses, and found that scores increased by 24 percent on a budget lesson taken by 3,900 students.
• Rutgers University – Newark engages the community in financial literacy early on, to help families consider and prepare for college, particularly those who are socially disadvantaged. The “Road to College” and “Debunking the Myths of Applying for Financial Aid” workshops engage students and families from middle and high schools about the financial aid process, to help them understand the options available and make informed decisions about college applications.
• The University of North Texas Student Money Management Center offers educational programs, one-on-one coaching sessions, and emergency loans to help students budget, plan, and make financial decisions.

Cluster 11 noted the importance of assessing the effectiveness of financial wellness programming and potential impacts on student success. Areas for further exploration the Cluster will engage in include ensuring that financial wellness programming reaches all students, particularly those with diverse backgrounds, through effective communication and integration into existing content, and coordinating these programs with other student supports to ensure a holistic approach.

Participating Institutions

Cluster 3:

• Alabama A&M University
• Alcorn State University
• Auburn University
• Mississippi State University
• Southern Mississippi University
• University of Kentucky
• University of Tennessee
• University of Louisiana at Lafayette
• West Virginia State University
• West Virginia University

Cluster 11:

• Northern Arizona University
• Northern Illinois University
• Rutgers University-Newark
• Texas State University
• University of Texas at El Paso
• University of Texas at San Antonio
• University of California-Merced
• University of North Texas