GPA and retention: The connection between scholarships and dropout

Students on GPA scholarships often cite financial issues as the reason for dropping out, but research suggests this isn't the root cause. Here we explore how Student Success can help avoid this negative outcome and proactively prevent dropout to boost retention.

Clock 3 min read Calendar Published: 10 Feb 2025
Author Jacob Goodwin
GPA and retention: The connection between scholarships and dropout

 

Dropout, retention, persistence… however you look at it, ensuring students stay in college, hit their grades and achieve success is of paramount importance for institutions and learners alike.

But sometimes things don’t go to plan. And for those college students on GPA reliant scholarships, the narrative surrounding dropout often centers on finances. Affordability is regularly cited as the primary reason for a failure to complete, which makes sense given the rising costs of higher education which have tripled over the past three decades.

While financial pressures certainly play a role, a deeper look reveals a more complex and often overlooked factor - mental health.

For many students, the struggle to maintain the grades necessary for scholarship retention isn't simply a matter of academic ability; it's a battle against anxiety, depression, and a lack of adequate support systems, ultimately leading to a cycle of disengagement that forces them to leave college.

Academic pressure and performance

The pressure to perform academically, from both the institution and the student themselves, is part and parcel of the college experience. But for students on GPA dependent scholarships, the stakes can be significantly higher.

These scholarships, critical for affording tuition, become a double-edged sword. They provide access to education but can also create an environment where the fear of losing financial aid exacerbates existing mental health challenges or triggers new ones.

Research consistently demonstrates this strong correlation with students experiencing mental health difficulties more likely to have lower GPAs, take longer to graduate, or drop out entirely.

The National Student Clearinghouse Research Center also highlighted the impact of mental health on student retention, noting that students struggling with their mental wellbeing are at higher risk of academic setbacks and ultimately, leaving college.

The reasons behind this are multifaceted. Social adjustment to college life, often away from established support systems, can contribute to feelings of isolation and overwhelm. Furthermore, mental health conditions are proven to be prevalent among college students, with academic conditions significantly impairing overall performance.

Issues arise at scale when the cycle becomes self-perpetuating as the student is caught in a downward spiral of disengagement. The consequences of falling below the required GPA can be devastating.

Students may be placed on scholarship probation, a period during which they must raise their grades to meet the required average. If the student fails to meet the requirements within the probationary period, they risk losing their scholarship entirely.

In this situation, financial reasons will be cited as the cause of dropout even though the root cause can be traced back to a lack of preparedness for college.

Understanding dropout causes to find a solution

Addressing this issue requires a multi-pronged approach. Colleges and universities must prioritize support services, ensuring that all students have easy access to counseling, therapy, and other forms of advice.

Furthermore, faculty and staff should be trained to recognize the signs of mental health struggles and know how to direct students to appropriate resources. Creating a campus culture that destigmatizes the experiencing of challenges is also crucial.

Students need to feel comfortable seeking help without fear of judgment or negative repercussions.

Finally, open conversations about the interconnectedness of mental health, academic performance, and financial aid are essential. Students need to understand that their struggles are not unique and that help is available.

By acknowledging the silent struggle behind scholarship related dropouts, institutions can begin to provide the necessary support to help students thrive, both academically and personally.

Retention and the three learner challenges

Learners with barriers

Students with disabilities, neurodiverse conditions or experience of language barriers may struggle to access and process information.

Without the right support systems in place, these students may find it difficult to take notes, keep up with coursework and perform well in examinations leading to a lower GPA and the potential loss of their scholarships.

Time poor learner

Students juggling multiple responsibilities, such as work or family care, may have limited time for studies. The constant struggle to balance work, school, and other commitments can create significant stress and anxiety, which can negatively impact academic performance and mental wellbeing.

This stress can make it difficult to focus on studies, leading to lower grades, jeopardizing GPA reliant scholarships.

Underprepared learners

Learners who lack the necessary foundational skills or knowledge, such as veterans or first-generation students, may struggle to keep up with the demands of college through a lack of preparation. This can lead to feelings of frustration and inadequacy, which can further exacerbate challenges, making it difficult to succeed academically.

The fear of failing and potentially losing the scholarship can create additional stress and anxiety, further hindering academic performance.


For all learners, college is an experience that can open doors and provide countless opportunities. Yet it can also create a number of challenges that foster additional stress, putting huge amounts of pressure on students, potentially exacerbating existing difficulties.

By acknowledging and addressing these challenges, colleges and universities can provide the necessary support to help students succeed.

As a result, persistence remains high and dropout low, as learners are able to continue meeting the GPA requirements of their scholarship, ensuring they have the financial foundations to fulfil their potential.

Learn more about the fundamental learning challenges
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