Journal of Research in Higher Education

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Does Financial Aid Play a Factor in the Retention of African American Summer Programs?

Pamela Flowers-Magee, Ph.D.

Hinds Community College

Jackson, Mississippi

Abstract

This study examined the overall influence that financial aid has on college retention rates. It also examines whether there was an impact on retention in higher education while considering a critical factor such as financial aid. The findings of this study included students whose families do not have a high income; many are first-generation, without college-graduate parents, and these students are often unable to navigate the complicated financial aid system successfully. With the assistance and services these students need to prevail against the challenge of college, their survival rate is positively affected. Thus, such students drop out to work full-time and return to college later on a part-time basis; both features accelerate minority retention. The results from the Minority Retention Survey revealed that the students are mostly satisfied with the financial packages; however, much improvement is needed within the system to improve the method of measuring the type of need for financial aid.

Keywords: Financial Aid, Retention, Graduation Rates

INTRODUCTION

The focus of retention in colleges and universities between the first and second years has been the focus of research for a very long time. However, it has become increasingly significant for colleges and universities. There are several reasons that minority students leave colleges and universities without completion. These causes can range from a lack of financial aid to disability issues and a lack of academic support to family issues. These problems can be the main reason for the difference between retention and attrition. In this study, the factors that affect minority students' retention were researched to determine whether or not higher education institutions can positively impact retention. Retention refers to maintaining attendance or being active within an institution. In the case of this article, retention means maintaining attendance beyond the first academic year.

Colleges and universities must pinpoint and fulfill the expectations of potential and current students. Because of exceedingly high retention rates for part-time students at fewer than two-year for-profit institutions, for-profit schools could claim the highest retention rates among part-time students. These institutions should meet aspects of a student's educational experience which are more creative ways to fulfill student satisfaction than getting students to attend their university or college.

Financial aid refers to the governmental or institutional funds given to students with the intent of funding post-secondary education. These funds are in the form of grants, scholarships, or loans. With the proper mentoring, students are beginning to understand the inner workings, policies, and

 deadlines of financial aid and, eventually, take on the responsibility for their financial future. Students are also becoming more involved in communication with programs and services that will help them succeed.

Financial aid significantly impacts student access to college and success in degree attainment. Institutions focus on the best resources to promote student success as financial aid resources decline. Intended outcomes and how programs are administered have become central to developing effective financial aid policies (Hashmi, J., 2012). There are several reasons that minority students leave colleges and universities without completion. These reasons can range from a lack of financial aid to disability issues and from lack of academic support to family issues. These issues can make a difference between retention and attrition. 

Higher education is the one chance for a new lease on life by helping them advance in their careers. Once a person decides to attend a college or university, there are many things they consider prior to admission, and financial aid is undoubtedly one of them. The effect of rising costs to attend college has increased so much that it may create obstacles for young adults, deterring them from attending college, acquiring jobs in the fields, and making a high-paying salary. However, many students who begin college in this country only graduate within the anticipated time it takes to obtain a degree in the major being pursued. As the tuition cost continues to rise, this is why college is further out of reach for the families that need it most to become a part of the middle class. The apparent challenge is to hold down the costs of higher education. It may be obvious, but more complex. It would be almost impractical to lower costs without compromising the product. This effort has placed strains on increasing revenues and not having to increase tuition costs. 

Colleges and universities should develop ways to assist students with financing tuition costs. Here are a few ways that can be of assistance to the student: keeping students notified about jobs both on campus and off-campus, making students aware of scholarships and grant opportunities in the institution's news feed or through student emails, and assisting with connecting students with professional opportunities both on campus and off campus. 

Carol Couvillion Landry (2002–2003) observes that administrators at historically black colleges and universities (HBCUs) list finances as a primary reason for student departure from such institutions. Such families do not possess high income; many are first-generation, without the experience of college-graduate parents, and such students are often unable to navigate the cumbersome and complicated financial aid system successfully. Without targeted assistance and services such students need to surmount the challenge of college, their survival rate may be adversely affected. Therefore, such students may drop out to work full-time and return to college later on a part-time basis; both features accelerate minority retention.

The economic condition for some minorities in the United States was not favorable. Students look for and depend on different types of financial aid, which helps them acquire the education that they are seeking while, at the same time, not putting them in debt. Some support came from grants, assistantships, work-study programs, and scholarships (DeNavas-Walt, Proctor, and Mills 2004, v. 18 n2). Regrettably, this same economic condition made it hard to make ends meet while enhancing salaries, marketability, and quality of life.

 As a rule, many in higher education suggest that students not take out more in student loans than anticipated salary in the first year of employment. For example, students in a particular major who expect a starting salary of $30,000 should not take out more than $30,000 in education loans. Taking out too much in student loans may contribute to long-term financial hardship and force borrowers to delay making significant purchases, getting married, having children, and investing for future needs such as retirement or saving for their children's education. In contrast, taking out too little in loans may contribute to an overreliance on part-time employment, which could affect classroom performance depending on the type of employment.

According to Beeson and Wessel (2002), students working on campus have better retention rates than those working off campus. It is difficult to determine the appropriate amount to borrow is difficult, especially for first-year students. Freshmen students often change their majors one or more times and may have unrealistic expectations about their future opportunities of the income that they will be making.

The study considered whether adequate financial aid among African American students improves retention rates. According to Wilcox (2008, v. 18 n2, 47-60), "the academic programs need sufficient finances to fund the supplemental resources for the students assuring the success of students in a chosen academic career. Some issues exist that should be addressed by financial aid officials, such as the federal and state financial aid programs failing to keep pace with college costs. There is a gap between family income and college and university costs, and the declined ability to balance institutional budgets for the availability of more funds to meet the increasing needs. As a result, several groups of interest, organizations, and individual families believe this concept. Consequently, it should be researched organizations, and individual families believe this particular concept. Accordingly, there is a need for it, should be investigated to find if it is true.

Progressively, there are examples in which the tuition and fees college students pay, as well as the costs of enrollment, are not reasonable by the inadequate return expressed experienced by students, especially those who leave higher education before completing their respective programs. Additionally, for taxpayers, investments in students through institutional subsidies and financial aid sometimes do not translate into higher educational attainment and the expected increases in tax revenue, reductions in government dependency, and other social benefits. The non-college completion is a significant problem and has serious repercussions for many aspects of our society and country (Long, 2018). The type and mix of financial aid provided to students can positively or negatively affect students' decisions to continue in college. It may depend on their circumstances, background factors, tuition, room and board costs, and fees.

The Role of Financial Aid on Minority Student Persistence

Economic equality occurs when everyone has equal wealth, opportunity, and results; nevertheless, the United States has the most significant gap between the rich and poor (Fowler, 2014). The need for higher education was identified when there were more opportunities for advancement towards a position on a job, becoming a role model, and setting the tone for children to attend college and ultimately make a better life for themselves. 

 As demographics and economic developments adversely impact enrollments, colleges, and universities began to acknowledge the importance of financial aid concerning these trends. The necessity of financial assistance was reasonable among minorities, and students could not remain enrolled in higher education institutions. During precarious periods the students who have to withdraw from school do not have sufficient funds (DeNavas-Walt, Proctor, and Mills 2004, v. 18 n2). 

People see an advertisement for continuing education or distance learning programs, many things cross their minds, such as what the college or university has to offer, would a particular significant help build a specific career, how that person could advance at their present job, how much was tuition, and can they afford it. Education is essential to the economic stability of families. Those people seek to enhance their salaries, make themselves more marketable, and have a good quality of life. When minorities were deprived of a good education and the necessities that were required to survive, their future was unsure, and this had many consequences that were passed down to the children, and this could, in turn, make their lives more complex than they had to be (DeNavas-Walt, Proctor, and Mills 2004, v. 18 n2).

Since the mid-90s, students' graduation rates from the bottom forty percent of United States households had remained under twelve percent of new college graduates. Education regarding financial aid, including how to apply for it and where to appropriately use it when assistance is received, could impede retention rates (Dulabaum, 2016, p. 6). Government-funded programs often require students to be enrolled in many credit hours to be eligible for housing rates and insurance (Dulabaum, 2016, p. 6). Higher education systems may be hindering economic and racial advancements by emphasizing student deficits and remedial education, even when interventions to address financial burdens were addressed. 

Whereas financial assistance was necessary for the lower income students to complete a college degree, many underrepresented students would receive Pell Grants. They had limited job opportunities because they did not earn a degree. Obtaining a loan was a significant problem as many students took out loans and consequently were responsible for repayment. This large percentage of these students consisted of African American students from homes with a net worth of ten percent of the average of White households. 

Financial aid assists students enabling them to pursue post-secondary education (U.S. Department of Education, 2010). The primary purpose of financial assistance is to act as a bridge to assist students and parents in filling the gap between what they can provide financially and the total cost of attendance. Need-based aid is determined by what students can show they need as a bridge in their finances to attend college. Merit-based aid is accessible to students who perform at a particular academic level. Loans are also provided to students at low-interest rates, and this funding source includes a restitution element in that loans must be repaid. Grants and scholarships are funds that do not require repayment. Participation qualifications for these sources of financial assistance are merit-based or need-based (U.S. Department of Education, 2010).

Pell grants and Stafford loans are analysts of retention at all academic levels for these students. However, each type of financial aid affects student retention differently. Pell grants are deemed more instrumental for students who take more than six years to graduate due to their flexibility of   

eligibility requirements. Stafford loans can fill in gaps in financial aid for students committed to earning a college degree and willing to acquire financial debt.

The Financial Aid Programs that Influence Minority Enrollment in Higher Education

The Educational Opportunity Grant Program developed in the 1960s was to assist disadvantaged students with aid in the form of the first federal grant program and also offered students aid that does not have to be paid back. The federal government program ultimately developed the Federal Supplemental Education Opportunity Grant or FSEOG. This program afforded entrance to higher education for many minorities across the United States by filling in the financial gap caused by the deplorable endured by many minorities (Department of Education, Student Aid, 2005).

Financial Aid Programs that Need to be Strengthened

The Federal Pell Grant Program has guidelines for students and families to abide by to receive assistance. To receive any Pell Grant funds, the families must show that there was a need for financial aid, and the amount will depend on how much funding was allotted by the entire Federal Pell Grant Program. The maximum award given to a student for the 2004 – 2005 academic year is $4,050. The amount the student received depended on the costs to attend a particular college or university, part-time or full-time status, and whether or not they planned to participate in the institution for the entire academic year or less (Department of Education, Student Aid, 2005).

Financial Aid Policy Developments

Students were affected by a change from grants given on a need basis to loans that must be repaid. The amount of grant aid usually distributed to students decreased from fifty percent to forty percent of tuition costs from 1990-1991 and 2000-2001 (Swail, 2003). Due to the reduction in need-based grants, loans were used to make the difference. While college and university costs continually rose, there were nominal increases in federal grant aid (Swail, 2003). The use of tax credits and student loans were options that were available for families. Thus, even though low-income minority families usually receive tax credits, attending a higher education college or university may not be enough. In the 1990s, higher education institutions began to use their need-based aid as merit-based aid to attract students of middle and upper-income families who had the academic resources to effectively prepare them for college (McPhearson & Shapiro, 2002).

There is a significant concern about federal and state need-based grants to lower-income students. This concern may have encouraged colleges to shift institutional grants toward non-need-based grants to upper-middle and higher-income students. Research shows that institutional grants or discounts to less needy students have increased more rapidly than institutional grants to students from lower-income families as colleges compete for "desirable" students (Mundel, 2005; McPherson & Schapiro 2006, pp. 3-15). However, there needs to be more evidence that this shifting importance on the part of colleges has resulted from increases in external grant aid to lower-income students. Colleges that provide most institutional grants or discounts usually only enroll small numbers of students who qualify for federal and state grants. As a result, these institutions see little effect on their students when federal grant awards increase. 

The issue of financial aid depends on the college and university and the political environment in which they find themselves. State aid is the most important source of financial aid and is subject to differ according to the state's financial health. Legislators support higher education, so money is put into financial aid programs, or legislators may not support education as much as many would like. All states have a percentage of their budgets allocated to education, but these percentages can vary from state to state.

Colleges and Universities in competition to keep student enrollment up and retention rates are significant mechanisms of academic rankings. These institutions must keep students enrolled because students and parents are visiting. Due to stakeholders such as U.S. News and World Report that use these rankings growing tremendously, this factor has been increasingly important. Additionally, public colleges and universities are up against legislatures that have begun to consider retention and graduation rates when determining the amount of funding that will be allocated with consideration to the performance in the area of retention and persistence. 

Methodology

The purpose of the study was to identify and examine the factors that affect minority student retention in higher education and to determine the cause for attrition at a Historical Black College and University (HBCU) in Mississippi. The study examined whether there is an impact on retention considering the factor of financial aid. The researcher determined the factor (s) to address freshmen retention at an HBCU. A Minority Retention Survey measured this study. The objective was addressed by examining the factors that caused retention in freshmen students at the targeted HBCU. The aspect under consideration was financial aid. The sampling population included students enrolled in the 2019 Summer Bridge Program at a Mississippi urban university, utilizing students approximately 17 years old and above. The ethnicity was primarily African American and included other ethnicities enrolled in the 2019 Summer Bridge Program. The survey consisted of two parts, the director/coordinator and the student participants. A Minority Retention survey developed by Angela Ellis (ProQuest, 2007)   was replicated using the Qualtrics method. Qualtrics is an online survey software that permits a researcher to construct surveys, distribute the surveys and examine the responses provided through a particular online location. The results are available in a report that can be downloaded for further use in the study. Due to the COVID-19 pandemic restrictions, physical contact with the designated population was prohibited; therefore, the researcher conducted the study using the Qualtrics survey platform. A Qualtrics data analysis was deemed more appropriate to survey the participants than SPSS. The Summer Bridge participants and director/coordinator were contacted via email since the participants could not complete the survey face-to-face. 

Quantitative research studied the effect of undergraduate African American student retention in higher education at a Mississippi urban university. The quantitative survey was emailed to the participant, and the quantitative data was collected through a survey entitled Minority Retention Survey. Permission was obtained from the university's Institutional Review Board (IRB), and the research began. The Institutional Research Planning and Assessment Department assisted by providing identification numbers for all of the 2019-2020 cohorts in the Summer Bridge program. Surveys were then distributed to the students. Initially, 50% of the surveys were returned. It was found that 100% of the cohorts had returned to the university for the ensuing academic year. Therefore, the researcher used that data to build the data analysis.

Participants

Participants of this study consisted of (N=23) undergraduate students at Jackson State University. These participants were randomly selected. Participants comprised seven males (30.1%) and 16 females (69.9). All participants were African American (100%). Participants were given a three-question survey, and their reflections were evaluated based on the 6 points Likert Scale. Background and personal details were asked in the Minority Retention Survey. 

Results/Findings 

Disagree;(1) Undecided; and (0) N.A. if the comment does not apply to you. Quantitative analysis was found for all these questions: for question number 9 students, (N=9, 39.13%) students reported Strongly Agree with their financial aid package. Additionally, eight students (N=8,34.78%) reported Somewhat Agreeing with their financial assistance package for question one. Furthermore, for question number one, six students (N=6, 26.09%) reported disagreeing with their financial aid package. Also, there was no reflection from question number one on Somewhat Disagree and Undecided. 

For question two, 5 students (N=5, 21.74%) reported Strongly Agree with their financial aidThe findings, revealed that financial aid was a significant concern. Some families did not have a high income; many were first-generation, without college-graduate parents, and these students were often unable to navigate the complicated financial aid system successfully. Without assistance and services, these students need to overcome the challenge of college later on a part-time basis; both features accelerate minority retention. The feedback from the Minority Retention Survey showed that students are mostly satisfied with the financial packages; however, much improvement is needed within the system concerning measuring the type of financial aid required.

This study was designed to explore financial aid's role in retaining African American students for summer programs. Participants were given a survey consisting of three questions, and their reflections were evaluated based on the 6 points Likert Scale(S) Strongly Agree; (A) Somewhat Agree; (3) Disagree; (2) Somewhat D package. Additionally, nine students (N=9, 39.3%) reported Somewhat Agree with their financial aid package for question two. 

Furthermore, two students (N=2, 8.70%) reported disagreeing with their financial aid package for question two. Also, for question 2, one student (N=1, 4.35%) reported Strongly Disagree. Moreover, for question number 2, four students (N=4, 17.39%) reported Undecided. For question number two, 2 students (N=2, 8.70) reported that the question does not apply. 

Discussion 

Due to the national pandemic beginning in 2020 and still going on to date, there was an impact on students responding to the Minority Retention Survey emailed to the students in the Summer Bridge Program at an urban university. After analyzing the data to examine the factors that affect minority student retention, it was evident from the survey results and the literature review that there must be changes within the socioeconomic conditions of minorities and the academic institutional environments. The conclusion supports the initial hypothesis at the beginning of this study with the present literature and this study's findings. 

Summary of the Study 

The researcher determined what factor(s) were used to address freshmen retention at an HBCU. A Minority Retention Survey measured it. This objective examined the factors that cause retention in freshmen students at an HBCU. The factors under consideration were financial aid, academic preparedness, and college environments (socialization). The researcher utilized an urban university's freshmen population to explore their attitudes about course curriculum, financial aid, academic preparedness, and college environments (socialization). The survey was administered to the urban university freshmen enrolled in a Summer Bridge Program. The survey data was collected and analyzed. 

The study surveyed 23 participants in a Summer Bridge Program at an urban university in Mississippi. This survey gathered students' opinions, needs, attitudes, and perceptions of their college experiences and financial aid. The university represented in the study was a four-year urban institution. Students were informed that their nationality and number would only be used to identify them to preserve their anonymity. 

The various financial aid programs available today can assist minority students in attaining an education; however, there is much improvement within the system concerning measuring the type of need for financial aid. Presently, the amount of aid that students receive is based on the family's net salary. The family is expected to pay the balance due. The Expected Family Contribution (EFC) measures the family's financial strength and is calculated according to a formula established by law. The EFC helps to determine the family's financial needs. That is calculated by subtracting the EFC from an institution's cost of attendance for one year, which includes the college's tuition. A family's needs can sometimes be bridged through federal grants, which do not have to be repaid, and student loans that do not have to be repaid (Kerr, 2019).

A strong focus on financial variables within one institution during a stable enrollment period characterizes the work and provides for policy implications. According to Olbrecht, Romano, and Teigen's (2016, p. 2 - 3) article How Money Helps Keep Students in College Economics, the theory would hypothesize that more outstanding contributions from the family, more institutional aid, and less unmet needs would all tend to support retention. From a competitive standpoint, once a particular student is admitted, colleges and universities compete for those students based partially on the ultimate cost of attendance to the individual student and the perceived value of the institution's education, which is a mixture of cost and quality. Furthermore, if financial variables are essential, higher education institutions can affect their retention rates and, ultimately, their rankings by adjusting the financial aid packages of prospective students. (Olbrecht, Romano, and Teigen's 2016, p. 2 – 3).

Students at colleges or universities receive federal and state need-based on Free Application for Federal Student Aid (FAFSA) information for federal aid and a combination of FAFSA and other tax information for state need-based aid. The institutions will follow the tables set forth by the federal government when making need-based aid offers. In the case of merit-based aid (hereafter "institutional aid"), the admissions office determines those dollar valuations. The awards are based primarily on SAT/GPA combinations. These criteria have been relatively consistent over the years (Olbrecht, Romano, and Teigen. 2016, p. 7.) 

Financial aid is often seen as a source of recruitment instruments, with little attention paid to its impact on student retention. However, the family's taxed and untaxed income, assets, and benefits (for example, unemployment or Social Security) are all considered in the calculation of the formula. The family size and the number of family members attending college during the year are also considered. 

Financial aid often does have a significant impact on students' ability to attend and complete college. For this reason, it is up to financial aid administrators to be more aggressively involved in the conversation about retention.

Adequate financial aid can enable access to higher education. However, this works based on the financial strength of the student and the institutional financial aid organization. The government should allocate more funding to financial aid and keep funds or grants created to assist students' success in meeting their educational goals. 

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