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Dr. Laura Hamilton
The research, which focuses on students from families that are both low-income and low-wealth—dubbed "dually-disadvantaged students"—reveals a critical blind spot in how states allocate financial aid. While income has long been the primary metric for determining need-based aid, the report argues that wealth is an equally important but largely overlooked factor in determining college access and success.
"Students who come from low-income and low-wealth families face unique barriers that current financial aid systems aren't adequately addressing," the researchers found. These dually-disadvantaged students are far less likely to attend or complete college than peers who may have low incomes but access to some family wealth. When they do enroll, they borrow substantially more than other students.
The report, supported by The Institute for College Access & Success and the Partnership for College Completion, examined how California, Illinois, and New York—three states that have committed to sustaining higher education funding as federal support wanes—could better serve these students.
"When we see how much states stand to benefit by providing greater support, it's a win-win," said Dr. Laura Hamilton, a professor of Sociology at the University of California, Merced and co-founder of the HERE Lab.
The researchers modeled the impact of a $5,000 need-based state grant specifically targeting students in the bottom third of income distribution with zero family wealth. The results demonstrate substantial returns on investment across all three states.
In California, such a grant would produce approximately 4,590 additional graduates per cohort of first-time students. While the program would cost $208.6 million per cohort, it would generate $966 million in economic benefits—a return of more than four dollars for every dollar invested.
