Running head: FIRST GENERATION STUDENTS AND FINANCES

First Generation Students and Finances

Lindsay Gove and Beth Brandon
Western Michigan University
October 21, 2016

FIRST GENERATION STUDENTS AND FINANCES

Introduction
With the rising cost of tuition, financial difficulties impact students of
all kinds, but understanding the resources available, and having a support
system at home can create all the difference in navigating those difficulties.
First-generation students may not always have knowledge of financial
resources, and they may not have a support system with resources either.
This can be detrimental in various ways. From not being able to be involved
with certain student organizations or being unable to live on campus, to
having to find an off-campus job and balance work and school. Any of these
can impact a student's college experience. With the rising cost of education,
the need to use financial aid has grown significantly.
Departure Based on Financial Aid
Both first-generation and continuing-generation students feel that they
dont have the knowledge needed to properly manage and utilize student
loans (Lee & Mueller, 2014). For many students, these loans, grants, or
scholarships are the financial aid pieces that allow students to persist. While
both first-generation and continuing-generation students have indicated
struggles with financial aid, first-generation students are at a higher risk for
departure from higher education (Ishanti, 2006).
Other factors play into these higher rates of attrition; however, with
the rising costs associated with higher education the impact of financial aid
should not be overlooked. Lee and Mueller (2014) discuss how firstgeneration students rely more on student loans than the various grants that

FIRST GENERATION STUDENTS AND FINANCES

are available to them. Loans are often met with feelings of anxiety or
misunderstanding. First-generation students are often at a disadvantage,
because they may not know anyone who has navigated the muddy waters of
financial aid before. In fact, Ishitani (2006) described how loans were thought
to be a negative aspect of higher education by first-generation students.
Constantly grappling with the want to attend an institution of higher
education, but also feeling frustrated about a financial situation can cause a
lot of emotional stress in a students life. Ishitani (2006) found some
positives in the form of financial aid, as grants, scholarships, and work-study
were more likely to lead to persistence in first-generation students.
Unfortunately, first-generation students often do not have support in
applying to these forms of financial aid and may never utilize them.
Some studies on the impact student loans have on first-generation
attrition contradict each other (Ishitani, 2006). Certain studies have shown
that student loans have been a correlation with first-generation student
attrition, while others have not shown this to be true. At any rate, the fact
that some form of financial aid is usually necessary for a student to complete
a degree cannot be ignored. Whether it is the type of aid, or the amount of
aid, student persistence and departure can be greatly influenced by their
ability to pay tuition. With a lack of prior knowledge of how to successfully
navigate financial aid in higher education, first-generation students are at a
disadvantage.
Price of Engagement

FIRST GENERATION STUDENTS AND FINANCES

Astin (1991) approached student involvement with more of a holistic

lens, and that included: living in the residence halls, attending class, joining
student organizations, and working on campus, as just a few. Astin (1991)
believed that student involvement plays a big role in student success. Of
course involvement in the classroom is important, but what happens outside
can have just as much of an impact (Astin, 1991). Astin (1991) discusses how
on-campus jobs, living on campus, and involvement with honors societies are
some positive pieces of involvement that lead to retention. Through these
pieces of involvement, students will have a greater chance of making
connections with staff and faculty, who can become mentors, and other
students, who may act as a support group (Astin, 1991). Having support from
peers, faculty, and staff can create a tremendous impact on the success of a
student, particularly a first-generation student who may not support back
home.
Two of those pieces cost money. The average cost to live on campus in
a residence hall at a public institution is around $9,000 and it can be around
$10,000 at a private institution (Robert, 2016). These costs do not include
the meal plans, which are often required. For a first-generation student,
those costs may not be feasible. While grants, work-study, and loans exist,
balancing the cost of living with the cost of tuition can be challenging. At
Western Michigan University, the Lee Honors College offers smaller class
sizes with better faculty interaction and resources like peer success mentors,
advisors, study space, and more. The Lee Honors College also costs an

FIRST GENERATION STUDENTS AND FINANCES

additional $200 a year. Students who have no one with previous knowledge
to help them look for scholarships or grants, or to even ask about them, will
be less likely to apply for them and gain financial assistance to join honors
societies or live on-campus in residence halls.
One piece of involvement that can help offset the cost of college and
help with retention is having an on-campus job. If a student is able to work
on-campus, specifically in a work-study position, the chance that they will
persist in the educational career is much greater (Ishitani, 2006). By holding
these on-campus jobs, students will have a greater chance of meeting
students with similar interests, and also connecting with faculty and staff.
Of course there are other ways to get involved on campus without
paying, but many groups require dues, like fraternity and sorority life or
honors societies. Those groups provide amazing opportunities for support
and professional development, but they may not be accessible to firstgeneration students due to cost. These can all be barriers to the success of
first-year students, and when trying to balance the price of tuition and living,
the importance of involvement may not be present.
Working While Going to School
Because of the constant increase of college tuition, more students are
working while going to school in order to keep up on finances. In 2014, over
80 percent of undergraduate students worked a job while attending classes
(Darolia, 2014). This statistic can be applied to first generation students who

FIRST GENERATION STUDENTS AND FINANCES

are more likely to be working a higher amount of hours off-campus than their
traditional student counterparts (Terenzini, 1996).
In his study, Darolia (2014) found that employment during college can
have a large effect on a students extracurricular activities. Students were
typically keeping their study time, but replacing their extracurricular time
with work. This replacement can impact the students social integration, and
also their engagement in the campus community. First generation students,
overall, are often less engaged to begin with, so adding work hours and
becoming less engaged can be detrimental to the students chance of
success (Pike & Kuh, 2005). Engagement on campus has a direct correlation
to success whether a student is first-generational, or multi-generational.
Having a job while going to school does have its advantages and
positive outcomes. Being required to balance work and school can give
students a higher sense of urgency to use their time more efficiently. It can
also give students skills that are not taught in the classroom, such as
communication, problem-solving, adaptability, responsibility, organization,
and working under pressure (Darolia, 2014, p. 40). It is critical for students
to find a balance that works for them and their families, while still allowing
them to find academic success.
Positive Financial Aid Outcomes/Work Study
As mentioned in the above section, a students financial situation can
have a drastic impact on their college experience. If the student needs to
work long hours off campus, their levels of engagement will drop due to lack

FIRST GENERATION STUDENTS AND FINANCES

of time for extracurricular activities. There are, however, other options for
many students that have been proven to have positive effects on first-year
retention. Students who received grants of work-study jobs were 37% or
41% less likely to depart in the first year than were students who received no
aid (Ishitani, 2006).
Work-studies allow students to stay on campus even though they are
working while taking classes. Participating in work-study typically ensures
that there is a maximum number of hours set that the student cannot
exceed. For example, at Western Michigan University students are not
allowed to work over 25 hours per week. This applies to undergraduate
students as well as graduate students. Many students who feel dependent on
their job may not be able to say no when asked to work extra hours, for fear
of losing their job. This rule protects students from being asked to work extra
hours in the first place, taking time away from studying and extracurricular
activities.
Participating in an on campus work-study has the potential to increase
campus engagement by keeping the student on campus for longer periods of
time. It also puts them in contact with peers that may or may not share their
major and/or interests. A common on campus job allows students to work a
job right in their specific college. Because of this, their co-workers are often
peers that share a common major. Relationships in college are key to
engagement and success, and it is much easier to connect with someone
who you feel you have a commonality with.

FIRST GENERATION STUDENTS AND FINANCES

Implications and Conclusion

Because of the increase in college tuition, every student has their own
journey through financial aid and potential financial struggles. First
generation students often go through this process without the help of
someone who has previous knowledge on this subject. Student affairs
professionals need to be ready to help such students through the process
and also through the emotions that may follow. Being aware of scholarships
and grants that are available to students can remove some of the burden
that comes with paying for college. Connecting students with work study
programs and free communities on campus will increase the students
engagement on campus, ultimately making them feel more connected. The
job of a student affairs professional is to teach the whole student, including
financial success, personal development and academic development.
Knowing the situation that many first generation students may come in with
will allow those working in student affairs to be more prepared with aid and
solutions. Though many students struggle to pay for college, first-generation
students have the added challenge of also having to learn about financial aid
and navigate paying for college on their own. This challenge is amplified by
the cost of on-campus living and involvement in student organizations. It is
important to remember that student affairs professionals can provide
resources and support to first-generation students as they navigate through
their college experiences.

FIRST GENERATION STUDENTS AND FINANCES

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Journal of College Student Development, 40(5), 518-

529. Retrieved from

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working on the academic performance of full-time and part-time

students.

Economics of Education Review, 38, 38-50.

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Lee, J. & Mueller, J. A. (2014). Student Loan Debt Literacy: A Comparison of
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does-

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