Unlocking the Secrets of Enrollment and Retention Through Your Scholarship Programs

With both 2-year and 4-year college and university enrollment continuing to decline, everyone is asking, post-pandemic, what can we do?

You can start by recognizing what motivates students to choose a college or university, what factors contribute to their success, and what they expect from their college experience. Knowing that there are a high volume of variables that go into this major decision for students, we’ll focus on the financial component while still acknowledging the other factors that weigh on their minds in order to give some guidance on driving improved enrollment and retention.

Factors that Influence College Choice

There have been multiple studies over the years to help families and administrators alike better understand the decision-making process for choosing a college. Both a Higher Education Research Institute (HERI) study and a National Association for College Admissions Counseling (NACAC) study in the last decade found total cost to rank 3rd only behind reputation (1st) and available programs of study (2nd). Additionally, a Sallie Mae study from 2020 found that 73% of students will eliminate schools from consideration solely based on cost.

These aren’t shocking findings. Our customers, along with the US higher education industry as a whole, have known this for years (either anecdotally or through their own industry or campus-wide research). Furthermore, higher education and its costs (and perceived ROI) have become polarizing topics in America, creating even more public pressure to either find affordable college options or skip higher education altogether to start career earnings sooner. And of course, besides the factors already listed, many students consider attributes like location, support/campus services, culture, clubs and activities, and a broader (and tougher to define) “personal fit”, in making their final decision.

It's worth noting that the relative importance of these factors may vary across different demographic groups. For example, low-income students may place a higher emphasis on cost and financial aid, while first-generation college students may place a higher emphasis on support services and a sense of community.

Retaining Students with Increased Expectations 

In addition to the factors that influence college choice, it's important to understand the expectations and preferences that today's college students have for their college experience. According to a 2022 survey by the consulting firm Ruffalo Noel Levitz, the top factors that contributed to students' satisfaction with their college experience were campus culture, support services, academic programs, and extracurricular activities. Of course, ongoing costs continue to weigh heavily on the minds of students, but we’ll leave that aside for now.

In terms of campus culture, students are looking for a sense of community and belonging. This can be fostered through social events, clubs and organizations, and other activities that bring students together.

Support services are also critical to student success and satisfaction. Students may need help with a range of issues, from mental health and wellness to financial aid and career readiness. By providing robust support services, colleges and universities can help students overcome these challenges and stay on track to graduation.

Finally, today's college students are looking for academic programs that are relevant and engaging. They also place a high value on experiential learning opportunities, such as internships, study abroad programs, and undergraduate research.

Using your Scholarship Program(s) to Attract and Retain Students

We’ve all heard the broad concept of “use it or lose it”. It can be applied across individual talents, capital expenditures, budget plans, mental acuity and much more. Our advice here is similar but more targeted to helping you attract and retain students in today’s world: “Use it or lose them.”

If you have some of the scholarship programs outlined below: USE THEM! And spend every last dollar you can from these programs each year. If they’re endowed awards, being able to show your donor base that you’re effectively using their gifts only encourages more gifts from more people. If you have a merit-based program, thinking creatively about what’s important to your campus will encourage students who meet that profile to come your way.

Be sure to get Admissions, Retention, Financial Aid and Advancement (or your corresponding foundation office, if applicable) all working together (or at least sharing information). It’s likely that portions of these groups work well together already (e.g., Financial Aid + Advancement, Admissions + Financial Aid, etc.). Build on those successes and loop more people into the recruitment and retention programs within your school. The best way to get these groups working well together is to share results. When scholarships drive improved Financial Aid packaging - let the Advancement team in on the celebration! When better packaging delivers improved enrollment - share those victories!

We’re sure you’ve thought of all of these, but here are a bunch of scholarship programs to consider to help with both recruitment and retention:

• Merit-Based Scholarships: Offering merit-based scholarships can attract high-achieving students who may have multiple college options OR these programs allow you to hone in on the very specific type of student profile that’s interesting to your school. By providing financial incentives to the types of talented individuals you’re most interested in, you can increase your chances of enrolling these students and improving overall enrollment statistics.
• Need-Based Scholarships: As we’ve mentioned, cost is critical. Many students face financial barriers that prevent them from pursuing higher education or who might unnecessarily whittle down their selection of potential schools without understanding the average net price of that institution. By offering need-based scholarships, you can attract students who might otherwise be unable to afford the cost of tuition. This can lead to increased enrollment and greater diversity within the student body.
• Scholarships for Underrepresented Groups: To promote diversity and inclusion, you can establish scholarships specifically aimed at underrepresented groups, such as students from low-income backgrounds, ethnic minorities, or individuals with disabilities. By actively recruiting and supporting these students through financial aid, you can enhance your enrollment and retention rates among these populations.
• Transfer Student Scholarships: To attract transfer students from other institutions, colleges and universities can offer scholarships specifically designed for them. This can help create a seamless pathway for students seeking to further their education, thereby improving both enrollment and retention. We’re huge believers in 2-year schools at AwardSpring, and we believe 2-year and 4-year schools that serve similar students or operate in nearby regions should partner not only on transfer credits but on similar scholarship opportunities when possible.
• Retention Scholarships: Scholarships can also be used as a retention strategy. By identifying students who may be at risk of dropping out due to financial difficulties, you can provide them with ongoing financial support through scholarships. These retention scholarships can alleviate their financial burden, helping students stay enrolled and complete their degrees.
• Performance-Based Scholarships: Create incentives for academic achievement and progress. For example, offer scholarships to students who maintain a certain GPA or make significant progress towards their degree requirements. These scholarships not only reward students for their hard work but also encourage them to stay focused and engaged in their studies, leading to improved retention rates.

Our focus here was mainly on affordability. That’s our area of expertise and how we go about helping our customers. By leveraging your merit-based and endowed awards creatively across multiple program types, you can help alleviate the risks associated with the “cost” component of a student’s decision to attend (or stay at) your institution. Be mindful of the other thought processes and considerations of a student so that you can tackle recruitment and retention strategies. Inevitably, when you couple these cost-management strategies with the unique benefits offered by your institution, you will end up reversing the recent downward trends with enrollment and retention and supporting your institution and your students' success.