Addressing rising barriers to higher education completion 

Higher education in the United States is entering a turbulent era. Financial pressures—driven by policy changes, tuition increases, and declining public investment—are colliding with growing student needs. As paying for college remains challenging—especially with the costs of essentials like food, housing, and transportation rising—financially vulnerable students increasingly struggle to stay enrolled and complete their degree. 

The new reality of higher education  

The higher education landscape is being reshaped by converging challenges. Proposed changes to federal student loan programs—such as lower borrowing limits and new repayment structures—are reducing aid options and raising barriers to higher education. At the same time, state budgets are shrinking as federal cuts to programs like Medicaid and SNAP force difficult trade-offs, often at the expense of higher education funding. Meanwhile, stricter visa policies have contributed to declining international student enrollment, eliminating a vital revenue source for many institutions. 

Today, 87% of first-time students rely on financial aid, and even small financial shocks—like a car repair or unexpected rent hike—can derail a student’s progress. Consider Maria, a Last Mile awardee. After earning a Jack Kent Cooke Foundation Transfer Scholarship, she was on track to graduate from Arizona State University with a degree in cybersecurity and a job offer in hand. But with just three months to go, a $400 rent increase threatened to force her to choose between school and housing her family. 

Maria’s story is far from unique. Many students balance jobs, caregiving, and academics without a financial safety net. A single setback can mean the difference between earning a degree and leaving college with debt but no credential. 

The cost of these disruptions is immense. Students lose career opportunities and income. Colleges lose tuition and return on earlier investments. Employers lose access to qualified talent. And society shoulders the burden of lower workforce participation and increased reliance on social services. Meanwhile, traditional scholarships and aid programs remain misaligned with the lived realities of students—59% of whom face at least one form of basic needs insecurity—and fail to address their urgent, real-time needs. 

Reducing barriers to higher education 

This misalignment raises critical questions: How can we modernize financial aid to reflect real student needs? How can institutions collaborate with nonprofits to deliver timely, equitable support? And how can data help us intervene before a bump in the road becomes an exit? 

Emerging models offer powerful insights for funders, policy makers, and educational institutions. First, the conversation must evolve beyond college access alone to include college completion. Second, nonprofits can be agile, high-impact partners where public systems fall short. Third, modest, well-timed interventions can produce significant returns—higher graduation rates, greater economic mobility, and lower societal costs. 

Emerging solutions from a growing nonprofit network 

A growing network of nonprofits and innovative programs are stepping in to bridge the gap between the systems in place and those needed for today’s students to succeed, overcoming  barriers to higher education. These efforts center speed, flexibility, and a deep understanding of today’s students. 

Rapid-response, low-barrier assistance 

Programs like the Last Mile Education Fund and the FAST Fund by Believe in Students are providing small cash infusions quickly and with minimal bureaucracy to help students weather crises and stay enrolled. Since 2020, Last Mile has supported over 11,000 students in STEM pathways, achieving a 74% graduation rate. 

Advocacy and awareness 

Organizations like the Student Basic Needs Coalition and Swipe Out Hunger are working to destigmatize student poverty and expand access to resources like SNAP benefits and campus food pantries. Their work ensures basic needs are recognized as essential to academic success. 

Data-informed targeting 

Nonprofits like the Fund for Wisconsin Scholars and institutional programs such as CUNY ASAP/ACE are using data to identify students who are academically capable but financially at risk. These programs provide not only financial aid but also wraparound support—ensuring that help reaches those most likely to benefit. 

Systems change 

Programs such as FirstGen Forward and Complete College America are working directly with institutions to build capacity and reform outdated systems. Meanwhile, research and policy work by the Hope Center for Student Basic Needs and Last Mile Education Fund offer actionable insights to transform higher education policy at the national level. 

 While their approaches vary, these initiatives share key traits: responsiveness, simplicity, and a student-centered ethos. They meet students where they are, provide help when it’s most needed, and reimagine what support should look like in today’s higher education environment. 

A hopeful future where nonprofit intervention can build success 

Despite these daunting barriers to higher education, there is reason for optimism. Maria received emergency funding, graduated, and launched into a life-changing career in tech. Across the country, innovative, student-centered nonprofits are proving that strategic, timely support can turn the tide for thousands of students like her. Their work shows that with compassion, flexibility, and the right investment at the right moment, we can not only help students stay in school—we can transform the system that serves them. If higher education is to remain a pathway to opportunity, these efforts must not remain an exception. They must become the norm. 

Photo credit: Greg Bianchi, Microsoft Philanthropies