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Policy Framework
Many community college students face unexpected financial emergencies. They may be caused by the loss of a job; a health crisis; an unexpected increase in rent, utilities, or child care costs; or even a fire or natural disaster. Many Americans have been hit hard by the spike in gas prices. For students who have few resources to fall back on and live in areas where public transportation is scarce, not having the money to fill up the gas tank, repair a broken clutch, or replace a stolen bicycle can mean the difference between getting to class and dropping out. Research and common sense suggest that financial crises contribute to high rates of attrition among community college students. Short-term setbacks can impact college completion rates and, ultimately, a more secure financial future for individuals and families.
Agenda, Scope, and Goals
The Dreamkeepers and Angel Fund programs, funded by Lumina Foundation for Education, provide emergency financial aid to community college students at risk of dropping out because of financial emergencies. The programs are multiyear pilot projects administered, respectively, by Scholarship America and the American Indian College Fund. These intermediary organizations also provide technical and fundraising assistance to the colleges. The two programs have three overarching goals: (1) to develop infrastructures at participating colleges for delivering emergency financial aid; (2) to learn whether the students who receive such aid stay enrolled in college; and (3) to promote long-term sustainability of the emergency aid programs. Lumina asked MDRC to evaluate the design and implementation of both programs, the role of the two intermediary organizations, and the sustainability of each program over the long term, and to describe the recipients of the awards and their outcomes.
Design, Sites, and Data Sources
The programs are operating at a total of 37 community colleges. The 11 Dreamkeepers institutions are a subset of colleges in Lumina’s Achieving the Dream initiative; the 26 Angel Fund colleges are comprised of Tribal Colleges and Universities (TCUs). Each participating college determined how to design and administer their program, including guidelines for eligibility and award levels. In order to help institutionalize these programs after Lumina’s funding ends, each college is also expected to raise funds during a given program year to secure funding in the subsequent year.
The Achieving the Dream colleges were originally chosen because they enroll large numbers of low-income students and students of color — groups with high rates of attrition who have been traditionally underserved in the education system. American Indian students, at TCUs in particular, are also more prone to experience financial hardships and could likely benefit from short-term financial aid.
MDRC’s report covers the first two years of each program. The evaluation relied largely on qualitative methods, including surveys, interviews, and focus groups with program administrators and staff from the participating colleges, to learn about program implementation. MDRC also interviewed staff from the two intermediary organizations, as well as Dreamkeepers aid recipients. In addition, the research team analyzed student record data to better describe the characteristics and educational outcomes (such as persistence) of aid recipients.
What's Next
The project published a final report in May 2008.
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