Higher Education for Low-Income Students

There’s a big gap in college enrollment based on family income. A 2023 report from the Brookings Institute found that about 51% of low-income students go to college, compared to 64% of middle-income students and 89% of high-income students. Low-income students are also less likely to graduate once enrolled.

Low-income students face significant challenges that make it difficult for them to go to college, such as rising tuition costs, inadequate resources, health and stress risks, and having to work while studying. However, there are financial aid options and resources to help make the best accredited colleges more accessible, including scholarships for low-income students.

In this article, we will explore the challenges that low-income students face in higher education and highlight the support systems available to help them reach their goals.

A low-income student is one whose family income does not exceed 150% of the federal poverty level, according to the U.S. Department of Education. Factors like family size, assets, and the number of children in college are also considered.

The Free Application for Federal Student Aid (FAFSA) is the primary tool to determine a student’s financial need for federal aid programs, including Pell Grants and federal student loans, which help cover college costs. The FAFSA provides the maximum Pell Grant to students earning up to 175% of the federal poverty line (225% for students in single-parent households).

According to the Lumina Foundation, students from low-income backgrounds often face challenges that can hurt their ability to focus on schoolwork. Rising tuition costs, fees, and living expenses pose a major challenge. They also contend with limited access to resources and higher risk of health problems and stressful home lives, which hinder their academic progress.

Low-income students must often work while in school to put food on the table.

Financial barriers disproportionately affect low-income students, particularly when it comes to unmet need. Unmet need is the gap between what a student’s family can pay and the cost of college. For low-income students, the unmet need is often larger, making it more challenging for them to cover the cost of college. The average unmet need at four-year colleges is more than $10,000. Low-income students do not have the resources to cover this gap.

Low-income students have access to various forms of financial aid, including need-based grants and federal student loans, to help cover the cost of their education and minimize student debt. Work-study, scholarships, and state and institutional aid programs can also help make college affordable.

Grants are a type of financial aid that typically does not need to be repaid and usually helps with costs like tuition, books, supplies, transportation, and child care for people with dependents.

Federal Pell Grants help low-income students pay for education. To qualify, students must submit the FAFSA, which assesses their Student Aid Index (SAI), and may be eligible if their SAI is below a certain limit. The maximum Pell Grant award for the 2025-26 academic year is $7,395.

Federal Supplemental Educational Opportunity Grants (FSEOG) assist low-income undergraduates with exceptional financial need. FSEOG provides between $100-$4,000 annually and is available to students with exceptional financial need, including Pell Grant recipients. Each school gets a limited amount of FSEOG funds annually, so students should apply early.

There are three types of federal student loans: direct subsidized loans, direct unsubsidized loans, and the Direct PLUS Loan program. Direct subsidized loans, only available for undergraduate students with financial need, do not accrue interest while in school and award up to $5,500.

Direct unsubsidized loans are available to all students, regardless of financial need. They can award up to $12,500 to independent undergraduate students and offer a six-month grace period after graduation before payments start. The Direct PLUS Loan program covers the full cost of attendance and requires a credit check.

Many scholarships are available for low-income students from various backgrounds. Scholarships often look at financial need, academic success, community service, leadership, and personal essays when deciding eligibility. Three scholarships available are:

Many states offer scholarships to residents who graduate high school and plan to attend college in their state. For example, the Washington College Grant (WA Grant) is a statewide program that helps students from low- and middle-income families pay for college, career training, and apprenticeships. Eligible students are guaranteed funding.

States may provide these benefits based on academic performance or financial need. Some states have specific major requirements. High school guidance counselors are a great resource for asking about financial aid options.

Work-study programs provide students with part-time jobs to help cover educational expenses. These roles can include administrative support, library assistant, or cafeteria worker. Students can earn money while gaining valuable experience. To be eligible, students must complete the FAFSA, enroll at least part-time at an accredited school, and have financial need.

Many programs help low-income students earn a college degree. This includes everything from helping cover basic needs to services like academic tutoring, financial literacy education, and help with financial aid applications.

Felice Rollins, a college and career strategist, is familiar with the hurdles and successes of low-income students. In this Q&A, Rollins discusses the challenges these students face, from finding financial aid to seeking proper guidance.

“Besides money, the largest hurdle that low-income college students face is an overall lack of resources. Low-income students are unlikely to have personal or professional mentors to guide them through the challenges of higher education. They are also less likely to have family support for choosing the right college, completing financial aid forms, or even regular visits once they get to school.”

“To increase their chances of success, low-income students can actively seek out mentors among their professors, academic advisors, and dormitory staff. Finding someone who has experienced the same challenges can help students become more comfortable in the college environment.”

“The best resources for low-income students are college-based programs designed to increase persistence for underserved students. One example is Student Support Services, a U.S. Department of Education program that provides academic advising, tutoring, and financial assistance for low-income, first-generation, and homeless college students.”

“Many colleges are starting to use the ‘intrusive advising’ model that assumes that many students, especially those from low-income families, will need proactive strategies to solve issues instead of waiting for students to seek assistance.”

“Low-income students are often shy about sharing their challenges with others. Since they are unlikely to have family members or friends from home that can help guide them, it is crucial that they seek out guidance from others that can act as an extended family while they are in school.”