AN EXAMINATION OF STUDENT FINANCIAL SECURITY AND STUDENT PERSISTENCE DECISION-MAKING IN COLLEGE

Abstract

The purpose of this study is to ascertain whether a student’s sense of financial security can increase the degree of predictability of retention over and above the more traditional predictors typically found in the literature, and to get a better sense for how student financial security impacts student persistence decision-making in college. To determine whether or not a student’s sense of financial security can increase the degree of predictability of retention over and above expected family contribution (EFC) and grade point average (GPA), data on these variables were collected from students at Mid-Atlantic University between the years of 2017 and 2019. Each variable was run separately at the univariate level through correlations (or chi square for race) to answer the question of whether the variables high school GPA, EFC and financial security (both as a percentile, and as a raw score) correlate with retention. What was found was that only high school GPA significantly predicts retention, with financial security having no effect. To obtain additional information on how students’ sense of financial security impacts student persistence decision-making in college, a series of interviews were conducted with students who made the decision to persist, despite identified financial insecurities. To better understand the decision-making of students from both a relatively high socioeconomic (SES) status, as well as the decision-making of students from a relatively low SES, students from both the 1st EFC quartile, as well as students from above the 3rd EFC quartile at Mid-Atlantic University were interviewed about whether financial security had impacted their persistence decision-making. A thematic analysis of the six student interviews revealed that students are: (1) Averse to risk and sometimes reluctant to take on debt; (2) Unmoored from traditional financial support systems; (3) Lacking general money management knowledge, (4) Employed on and off campus, and (5) Committed to reaching their educational goals. If institutions of higher education are going to help students better navigate persistence decision-making, they need to understand the nuances of how student financial concerns influence such decisions. This study provides valuable insights into the multi-dimensional nature of student persistence decision-making, especially as those decisions are impacted by student financial pressures and insecurities. Such insights can help institutions develop effective interventions and initiatives to promote greater financial confidence in students, encouraging student persistence and educational goal achievement.