Rethinking Financial Need Assessment: Lessons from Washington State’s Bold Move
Washington State recently announced an innovative approach to determining income eligibility for financial aid: using receipt of Supplemental Nutrition Assistance Program (SNAP) benefits as a proxy for information provided on the Free Application for Federal Student Aid (FAFSA). By recognizing public benefit programs as reliable indicators of financial need, the state is streamlining access to its guaranteed free-tuition initiatives and reducing barriers for low-income students.
This bold decision is a game-changer—and it raises an inspiring question for scholarship providers: If it’s good enough for Washington, why can’t it be good enough for your scholarship program?
Beyond the innovation, many in Washington appreciate this move as a way to sidestep the complexities and inconsistencies associated with students and families completing FAFSA (especially in recent years). The traditional FAFSA process can be cumbersome, with common hurdles including technical errors, confusing requirements, and delays in processing. By relying on SNAP and similar programs, Washington simplifies income verification while focusing on the ultimate goal: helping students in need.
Why Public Benefits Make Sense as Proxies
Public benefit programs are designed with rigorous eligibility criteria to ensure they serve individuals and families in financial need. By leveraging participation in these programs, scholarship providers can:
Simplify application processes for students.
Reduce administrative burdens on staff.
Broaden access to scholarships by reaching underserved populations.
Using public benefits as proxies aligns perfectly with a student-centric approach, focusing on reducing barriers rather than adding complexity.
Public Benefits That Can Serve as Proxies for Income and Need
Here are some public benefit programs that can serve as reliable indicators of financial need:
Federal Pell Grant: Already a staple for identifying low-income students.
Low-Income Internet Programs: Examples include the Affordable Connectivity Program.
Free and Reduced-Price School Lunch Program: A widely used measure of household income.
Supplemental Nutrition Assistance Program (SNAP): Covers food assistance for low-income families.
Special Supplemental Nutrition Program for Women, Infants, and Children (WIC): Supports nutrition needs for mothers and young children.
Medicaid: Provides healthcare coverage for low-income individuals and families.
Temporary Assistance for Needy Families (TANF) or Work First (WF): Offers cash assistance to low-income households.
Housing Choice Voucher (HCV) Program (Section 8 Vouchers): Assists with housing costs.
Project-Based Rental Assistance (PBRA)/Section 202/Section 811: Includes affordable housing options for seniors and individuals with disabilities.
Public Housing: Federally funded housing for low-income families.
Affordable Housing Programs for American Indians, Alaska Natives, or Native Hawaiians: Tailored to Indigenous communities.
Supplemental Security Income (SSI): Provides support for low-income individuals with disabilities or seniors.
Veterans Pension or Survivor Benefits: Assists veterans and their families with financial needs.
Bureau of Indian Affairs General Assistance: Supports low-income individuals in Indigenous communities.
Tribal TANF: Tailored cash assistance for Indigenous families.
Food Distribution Program on Indian Reservations (FDPIR): Provides food assistance in Indigenous communities.
Tribal Head Start: Early childhood education for low-income Indigenous families.
Benefits for Scholarship Providers
Incorporating public benefits as proxies for income eligibility can transform your scholarship program. Here’s how:
Use a gold-standard assessment, created (and regularly updated) by experts in means testing.
Shift the burden from your team’s development of complicated, often inconsistent approaches.
Eliminate complicated forms and create a smoother experience for applicants.
Reach more students who need support but may face challenges completing traditional income documentation.
Ensure that students from diverse backgrounds can access opportunities.
Making the Shift
If you’re ready to explore this approach, we suggest starting small:
Identify public benefit indicators that align with your goals. Focus on those most relevant to your target student population.
Also consider how easy it would be for students to access documentation for verification, if needed.
Pilot with a subset of opportunities or awards. Test this approach with one or two scholarship programs to refine the process.
Communicate with stakeholders. Share your reasoning with donors, staff, and students, emphasizing the benefits of reducing barriers.
Celebrate success stories! Highlight how students have benefited from simplified eligibility and processes to inspire further buy-in.
Inspiration from Washington
Washington State’s decision to use SNAP benefits as an alternative to FAFSA demonstrates the power of thinking creatively about creating increased opportunity for students. By following their lead, scholarship providers can break down barriers, simplify processes, and ensure their programs truly serve those in need.
More Support for You and Your Team
Looking for other ideas on how you can determine a student’s financial circumstances and their fit with your need-based opportunities? Check out our free tools, including our guide, Assessing Students’ Financial Need.
Need a custom solution for your program or organization? Schedule time to talk with Students First Consulting about crafting strategies that make sense for your approach and the students you serve.
