5 Things to Know About Impactful Emergency Aid 

Nearly ¾ of college students balance their education with part-time or full-time work—but all too often, that’s not enough to make ends meet. Three million students leave college because of unmet financial needs each year. That means three million dreams deferred; three million degrees unearned; three million steps toward a better career not taken.  

Fortunately, we can act right now to start reversing that trend. As seen in our new short film, “One Scholarship Away,” a small investment at the right time can make all the difference for students facing financial struggles. And that means the difference between pursuing their educational and career goals, or getting stuck. 

1. The crises that force students to drop out can often be resolved with $1,000 or less. 

For Maria, Will, Bella and Alana, sudden financial setbacks ranging from $150 to $1,000 almost derailed their college and career dreams. And that is true for many of the three million students whose college careers are put on hold for financial reasons—at Scholarship America, our average emergency grant is $785, a small amount that goes a long way for students struggling to put food on the table or keep a roof over their head.   

As we have reported, the 2023 National Postsecondary Student Aid Study revealed that “22.6% of undergraduate students and 12.2% of graduate students are food insecure, and 8% of undergraduate students and 4.6% of graduate students experience homelessness. These rates were even higher at Historically Black Colleges and Universities (HBCUs) and Tribal Colleges and Universities (TCUs), as well as for-profit institutions.” 

In other words, even students who have managed to start their higher education and who are paying for tuition still find themselves struggling. And those struggles are compounded if they have children, serve as caregivers, or need to live far from campus. 

2. Emergency aid scholarships have a proven effect. 

The students featured in “One Scholarship Away” are just four examples of the proven success of emergency aid scholarships in keeping students on track—and other examples abound. 

During the COVID-19 pandemic, federal funding for emergency aid ramped up thanks to 2020’s Higher Education Emergency Relief Fund (HEERF) legislation, which earmarked more than $35 billion for emergency aid across three separate bills. Across the board, that funding was a lifeline for millions of students, with 82% of students reporting to the Hope Center that emergency aid directly improved their chances of graduating. 

What’s more, small award amounts often made the difference. In a study conducted by Edquity at Compton College in 2020, students who applied for emergency aid grants of just $250 saw a significant increase in their ability to stay in school and persist toward completion; those who received grants were twice as likely to complete their degree or certificate within a year (22%, versus an 11% completion rate for non-recipients).  

At Western Governors University, HEERF emergency aid recipients lowered their student loan balances and graduated at 11% higher rates. And, anecdotally, students at institutions with donor-funded emergency aid have reported staying in school thanks to grants covering a $300 license fee required for a job, or avoiding eviction with an extra $345. 

Finally, the impacts aren’t just financial: according to a Hope Center survey, 82% of students receiving emergency aid reported an improvement in personal well-being, and 76% felt their college cared more about their needs. 

3. Emergency aid is especially important for non-traditional and two-year students. 

While financial setbacks can strike all kinds of students, they are most widespread and potentially devastating among two-year and community college students, first-generation students, and students who are also parents or caregivers—the very cohort that stands to see the largest benefit from earning a degree.  

As Scholarship America has written, “While four out of five students who begin at a community college say they plan to go on to get a bachelor’s degree, only about one in six of them actually manages to do it. … [M]ore than half of community college students are receiving Pell Grant or other federal, state or institutional financial aid; half of all Hispanic college students and 40% of all Black undergraduates are community college enrollees; nearly 30% are the first generation in their family to attend college. 

And as the Hope Center has documented, low-income, first-generation, and parenting students are among the most positively impacted by emergency aid, with measurable reductions in unmet financial needs. In short, supporting emergency aid means supporting single parents; adults going back to school; first-generation college students and those from traditionally underserved communities, as they seek a more secure future through education. 

4. When disasters strike, emergency aid is vital. 

Wildfires, floods, storms, disease outbreaks—all of these potential disasters can have an immediate and devastating effect on students, especially those already struggling. To keep from dropping out, those who are impacted need help right away. And emergency aid scholarships, flexible in the face of crisis, can step in with crucial support when it’s needed most.  

At Scholarship America, we have worked with community and foundation partners to provide emergency funding to students impacted by disasters, including those who lost work during COVID shutdowns and who lost homes and belongings in hurricanes. Thanks to a combination of local knowledge and administrative expertise, we have been able to ensure students get the funds they need when they need them, giving them one less thing to worry about. 

5. Private-sector scholarship funds are uniquely suited to provide the right funds, right now. 

Whether it’s for natural disasters or unexpected personal setbacks, speed is of the essence—programs with disbursement timelines under 48 hours show significantly higher retention rates and improved mental health outcomes than those taking longer. 

As the nation’s leading provider of private scholarships, Scholarship America is able to mobilize fast, and to administer emergency aid funding according to four best-practice pillars:  

• Eligibility guidelines that are clear, broad and easily accessed from any device, even by those with little experience in the financial aid system. 

• Funding earmarked for non-recurring, unexpected living expenses, not tuition or fees. (This ensures they won’t have a negative impact on other financial aid calculations.) 

• A dedication to fast support: students applying for emergency grants typically need money as quickly as possible, meaning simple applications, fast turnaround and efficient disbursement are crucial. 

• Recognition that small amounts make a difference. Just $500 can mean the difference between a degree and dropping out.  

Establishing an emergency aid program or contributing to an existing fund, in partnership with an administrator like Scholarship America, means making a tangible, immediate impact on a student’s life. For less than $1,000, a student can avoid an unimaginable fork in the road, and instead continue on the path to a brighter future.