It’s Time to Remove Barriers for College Students on their Journey Toward Graduation

More than half of Americans are struggling with their financial health according to statistics released by the Center for Financial Services Innovation (CFSI) in support of #FinHealthMatters Day. And college students, in particular, face unique challenges as they juggle the costs of tuition with their everyday needs.

As CFSI shares, 63 percent of community college students are living paycheck to paycheck, and about 32 percent of students admit that their money woes sometimes get in the way of their studies. Money troubles appear to impact graduation rates as well as 71 percent of community college students who drop out do so to work or make money, as reported by the Gates Foundation.

To a student, financial challenges, such as unforeseen expenses like medical bills or car repairs, can mean the difference between graduating and leaving a program only a few credits short of a degree, which can have longstanding financial impacts. Research shows that degree completion is correlated with higher income over someone’s lifetime and increased financial resilience in times of economic downturn (U.S. Bureau of Labor Statistics).

At BECU, we believe that someone who would like to pursue a postsecondary degree should not have to choose between paying for tuition and paying rent or healthcare bills. Their potential for earning more income in the future should not be limited by their current financial situation. By providing financial support to students working toward a degree, we hope to move the needle to improve the overall financial health of the communities we serve.

As a not-for-profit community credit union, our focus is on building the financial health of our 1 million members and our communities through the products, services and programs that we offer. As part of that work, this year we committed $250,000 to partner with colleges and universities across Washington to fund programs that help students complete their postsecondary degrees or certification programs. Examples include grants to partners like Eastern Washington University and Seattle Central Community College Foundation for scholarships to assist students who may be at risk for not completing their degree due to financial hardship.

I encourage you to hear more from students from Seattle Central College and Eastern Washington University about the unique barriers that they face. Helping students with the “last financial mile” toward their degree completion brings our “People Helping People” philosophy to life in a very tangible way. By partnering together and providing the right support at the right moment we are helping students achieve their financial dreams, and start rewarding careers.

For students currently on their college or university journey, the BECU Foundation, the philanthropic arm of the credit union, awards scholarships each year to qualified student members. We’re proud that the Foundation has awarded more than $2.2 million in scholarships since 1995, allocating $240,000 in funds to 80 students in 2017 alone. This year, the Foundation further extended its commitment by awarding two-year renewable scholarships that reward demonstrated community service, as well as academic and leadership potential. The Foundation has learned that renewability is essential because it can be hard for students to find scholarships or grant funding after their first year of a degree program.

Continuing education after high school can help establish a strong foundation for someone’s financial future. Unfortunately, many students are dropping out too soon because of financial barriers. Our goal is to remove some of these barriers for students across Washington so they can focus on this important step, because improving the financial health of our members and communities is not just an area of focus for us – it’s the core of who we are as a credit union.