Financial Vulnerability: A Latent Class Approach to Understanding the Relationship Between Student Success and Financial Situations at Community Colleges

Abstract

As institutions strive to enhance their interventions for students facing financial stress, additional research into who these students are and how their financial choices are associated with their persistence is critical. In this study, we focus on how student tuition financing is associated with student persistence. The data for this study come from a unique data set that combines the Community College Survey of Student Engagement and the Integrated Postsecondary Education Data System. We applied latent class analysis, focusing on eight sources of tuition financing as well as students’ self-declaration of the likelihood of course or college withdrawal and their intention to continue their studies in the coming semesters. The results of our study indicated that three latent classes of students were at greater risk of attrition, that is, employer-dependent, loan and grant reliant, and diversified-resilient, reflecting distinct configurations of financial strain and work–study balance that can co-occur with other well-documented drivers of dropout such as mental health challenges and academic underpreparedness. The odds of attrition increased when students belonged to the class of employer-dependent at low-support institutions. We concluded this study by providing implications for policymakers, including the need for more alignment between institutional costs and financial aid allocation.