CFEE Guidebook

14 BUILDING FINANCIAL CAPABILITY THROUGH FINANCIAL COACHING work full-time or part-time, and have a host of economic and cultural circumstances that make it more challenging for them to obtain a college degree. 8 About 34% of college undergraduates in the US in 2017 attended community colleges. How- ever, a disproportionately higher percentage of first-time students enrolled were Hispanic (51%) and African American (49%). 9 First-time community college students are also more likely to come from low-income backgrounds, to be non-native English speakers, or to require one or more remedial courses, which statistical- ly indicates they will be less likely to persist and graduate. 10 Nontraditional Students Are More Vulnerable A research study done by the Federal Reserve Bank of Boston in 2015 examined the reasons why nontraditional students at community colleges are so vulnerable in terms of their financial lives. It points out that nontraditional students may be facing economic hardship, family obligations, shifting work schedules, and emotional issues. These all affect their ability to success- fully manage their academic work. The report concludes that a student’s decision to remain in or drop out of college most frequently boils down to financial circum- stances rather than academic issues. 11 This research is validated by the US Depart- ment of Education, which states that “non- traditional students are more likely to leave post-secondary education without a degree and are at greater risk of dropping out during their first year than traditional students.” 12 Because so many community college students work to support themselves or their families, their college studies are more likely to be negatively affected by the demands of their jobs. A report for the Bill & Melinda Gates Foundation concluded that the main reasons why nontradi- tional students are forced to drop out of college are the need to focus on work and an inability to manage both work and school. 13 Many studies of higher education point to the fact that dropping out before graduation can have a devastating effect on the finances of students with student loan debt. In various case studies, non-completion of college has been identified as one of the leading factors in student loan defaults across the nation. 14 Other research studies indicate that loan defaults and high amounts of student loan debt across the population have an adverse effect on the financial health of student borrowers, including a large percentage of the adult population in the US. These social and economic consequenc- es are significant, leading to higher amounts of financial stress, deferred decisions to marry or have children, and delayed home ownership. 15 A coaching program can therefore go a long way toward helping to remediate some of these outcomes and guide students toward financial behaviors and economic decisions that will enable them to persist in college. Completing a credential—whether a certificate, associate degree, or bachelor’s degree—also leads to opportunities for higher-income jobs. Financial Challenges Are More Complex The typical student at Westchester Commu- nity College is in their mid-twenties, working part-time or full-time, has a bank account, but no savings and no credit. The typical student may also have a spouse or partner and one or more children. Students may also be sup- porting parents or other family members, and immigrant students are often supporting family Thanks to my coach, I’m grateful that I no longer live paycheck to paycheck. Money Smart Forum student