Free College and Scholarship Programs: Adapting to the Shifting Landscape
State-level tuition-free college programs, such as those in Minnesota, Texas, Washington, and other states, offer a significant step towards expanding access to higher education, particularly for low-income students.
However, these initiatives also present challenges for organizations providing scholarships. As tuition costs decrease or are eliminated, the traditional model of scholarship funding may no longer be as effective. This is especially true for scholarship providers that offer support only for tuition and related costs, not for all Cost of Attendance-related expenses.
Many scholarship providers are facing questions such as:
How will free-college or no-tuition programs impact our community and students?
How can we continue to make a meaningful impact when tuition is covered?
Scholarship providers must adapt to stay relevant and effective. We recommend a few strategies to consider if you serve students whose tuition is or may soon be free.
Understand the Circumstances Relevant to Your Program and the Students You Serve
There are numerous types of programs that are described as “free college” efforts. They vary greatly, as do eligibility and implementation. Not only that, but for many, implementation has just begun, so there are still unknowns about how they will operate–and how they’ll interact with outside or institutional scholarships.
We recommend that you begin by evaluating how new policies and tuition-free programs impact your scholarship funding strategies and the students you aim to support. Research the specific details of these initiatives in your region, including who benefits and who may still face financial gaps.
Here are questions to ask or research of programs covering students in your community.
Which students are eligible? Which are excluded?
Are they guaranteed the opportunity, must they apply, and/or must they be selected?
Which specific aid is provided?
When is it allocated to student aid packages and students’ accounts?
Are there program elements such as required student or family contributions or other expected out-of-pocket expenses?
If tuition (and/or additional costs) are reduced, eliminated, or waived, how will the financial aid or other departments handle outside scholarships that are earmarked for such expenses?
Gather this data from policymakers and legislative documentation, public communications, colleges and universities, as well as students that have been impacted. If those you talk to haven’t yet considered guidelines for any of these program components, encourage them to do so. Offer to work with them to identify the most student-centric approach of their and your scaffolded supports.
Focus on Alternate Target Student Populations
Many of these programs are restricted to specific student populations, leaving some students without access to this valuable financial support. Consider shifting your award’s focus to those who may not be fully covered. This could include groups such as the following:
Students at private institutions
Middle-income students
Non-traditional students
International students
Undocumented students
Students in graduate-level programs
…or any other you discover to have uncovered need.
Pay for Additional College Costs
Another option is to adapt award parameters to address costs beyond tuition, such as housing, food, and transportation–critical to access and persistence, yet frequently unsupported.
One important example comes from Minnesota’s “North Star Promise” program, which offers free tuition at public colleges and universities for students with family incomes under $80,000. While this initiative removes a significant financial hurdle, a recent MinnPost article (“Minnesota Promised Free College Tuition, But Housing and Living Costs Still Loom Large”) highlights the ongoing challenges students face. As tuition becomes less of a concern, the burden of housing, food, and other living expenses becomes even more prominent.
Consider other types of non-financial support as well, which has been proven to be equally important to success and persistence.
Mentoring, coaching, academic planning, career counseling, and personal development are all integral to college and career success.
Funding professional development opportunities, such as internships, conferences, and workshops, can enhance students’ career prospects.
Offering resources to help students address mental health challenges, including counseling services, stress management techniques, and access to mental health professionals, is also crucial.
Use Alternative Award Disbursement Mechanisms
Instead of status-quo scholarship payments to institutions, offer other ways to get resources to them.
Provide flexible emergency or hardship grants to help students navigate unexpected expenses, such as medical emergencies or housing crises, preventing disruptions to their education.
Create a student loan repayment program that fosters long-term financial stability, particularly for those entering public service or underserved fields.
Consider one of our favorite approaches, awarding scholarships through 529 educational savings accounts. This method allows providers to cover a broad range of qualified educational expenses while avoiding issues like displacement or overpayment that can occur with direct payments to institutions. One of our clients, a Texas-based scholarship provider, is effectively using 529s to still fund their deserving selected recipients, but do so without risk of overawarding those students receiving tuition waivers. (Learn more about using 529s in our 529 FAQs blog post.)
Create Grant Opportunities
If you have the flexibility to do so, consider making grants to other entities that directly support the students you serve.
Offer resources to college access nonprofits that offer financial and other support programs to students and families seeking higher education.
Fund programs at the colleges and universities most often attended by your applicants and recipients. You might invest in student success programs, mental health services, or academic support centers.
Make the Case
Many of these approaches may require review and approval by board, leadership, and donors. It’s important to come prepared for these conversations. By highlighting the specific needs of students and the potential benefits of adapting scholarship programs, organizations can build support for innovative approaches and ensure their continued relevance in the years to come.
Provide data and stories that illustrate the evolving landscape of higher education, particularly local impacts.
Sharing insights from students, including quotes or even inviting a student representative to participate in the discussion, can help to humanize the impact of these changes.
To remain relevant, scholarship organizations must adapt to this changing landscape. By taking stock and shifting gears, organizations can continue to make a meaningful difference in the lives of students.
To help you navigate this changing landscape, Students First Consulting can provide expert guidance and support. Our team can assist with updating your program strategy, conducting research and analysis on specific local situations and student populations, and developing innovative solutions to address emerging challenges. Schedule your free consultation today.
