A survey of community colleges finds, across five states, Pell Grant recipients have lower success rates compared to their peers.
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Low-income students can experience a variety of barriers to success in college, and new data from the Richmond Federal Reserve points to gaps in success and completion among Pell Grant recipients at community colleges, compared to their peers.
An analysis of a 2024 survey of two-year public institutions in Maryland, North Carolina, South Carolina, Virginia and West Virginia identified a 13-percentage-point gap in success rates between Pell Grant recipients and those who do not receive the Pell Grant. Forty percent of Pell Grant students achieved at least one metric of success, versus 53 percent of non-Pell recipients.
Methodology
The 2024 Survey of Community College Outcomes includes data from five states—Maryland, North Carolina, South Carolina, Virginia and West Virginia—and 121 colleges. Data includes all degree- or certificate-seeking students enrolled during the 2019–20 academic year, including dual-enrollment students.
Around 34 percent of students included in the study received a Pell Grant while enrolled at a community college, (compared to the national average of 32 percent). Dual-enrollment students are not eligible for the Pell Grant.
The background: Pell Grant recipients, who are low-income students enrolled in a college or university in the U.S., are more often to be enrolled at public institutions, and the greatest share are from families who earn less than $20,000 annually.
Success, as defined by the Richmond Fed, means a degree- or certificate-seeking student at a community college completed one of the following over a four-year period following enrollment:
- Earned an associate degree
- Earned a diploma or credit-bearing certificate
- Earned an industry- or employer- recognized licensure or credential
- Transferred to a four-year institution prior to degree or award attainment
- Persisted by completing at least 30 credit hours
Over all, Pell and non-Pell students completed an associate degree at similar rates (19 percent), but Pell students were less likely to transfer (10 percent of Pell versus 20 percent of non-Pell) or complete a credential (6 percent versus 7 percent).
Digging into the data: Researchers qualify that while there is a correlation between receiving a Pell Grant and graduation, that does not imply causation, or that receiving Pell Grant funding leads to lower outcomes.
“Students who qualify for and receive Pell Grant funding may have substantively different characteristics than non-Pell students—differences that could be driving the differences in outcomes,” wrote Laura Dawson Ullrich, director of the Community College Initiative at the Richmond Fed, in a blog post.
North Carolina was the only state with higher associate degree completion rates among Pell students, but this could be due to how the state classifies dual-enrollment students as degree-seeking and their ineligibility for the Pell Grant.
South Carolina had the highest transfer rate among Pell (19.3 percent) and non-Pell recipients (27 percent), which could be a result of Clemson University and the University of South Carolina’s bridge programs with community colleges, Ullrich wrote.
Low-income students are more likely to experience basic needs insecurity, which can hinder persistence and completion. The Richmond Fed plans to conduct more surveys focusing on wraparound student supports and how the existence of these resources may contribute to Pell Grant recipients’ success.
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