Access has increased. The challenge now is to maintain it.

In recent decades, Brazilian higher education has undergone a significant transformation. The expansion of institutions, the diversification of educational programs, and the strengthening of public policies have helped enable an increasing number of Brazilians to enroll in undergraduate programs.

However, ensuring access is only part of the journey.

The biggest challenge facing educational institutions today is ensuring that these students stay in school until they complete their program.

University dropout rates remain one of the main obstacles to higher education in Brazil. According to data from the Higher Education Census, released by Inep, millions of students drop out before completing their degree, for reasons that go far beyond academic performance.

Among these factors, the financial issue comes up time and again.

In many cases, students do not drop out of college because they have lost interest in their chosen field. They drop out because they can no longer afford the costs associated with staying in college.

More than just an economic issue, this is a social, educational, and strategic challenge for the entire education ecosystem.

The True Cost of Staying in College

When it comes to higher education, people often think of costs solely in terms of tuition. In reality, however, the college experience involves a number of expenses that directly impact students' budgets.

Among them are:

• Tuition;
• Transportation;
• Food;
• Teaching materials;
• Technological equipment;
• Connectivity;
• Housing, especially for students who need to travel to other cities.

In a challenging economic climate, these expenses can become obstacles to continuing one's education.

It is important to note that dropping out is not always related to a lack of academic interest or a poor career choice. In many cases, students remain engaged with their program but face difficulties in financially supporting their continued enrollment.

The situation is even more sensitive among first-generation college students—those who are the first in their families to enroll in a degree program—and students in situations of greater socioeconomic vulnerability.

For these people, dropping out of school is often a decision they are forced to make, rather than a choice.

The Impacts of Dropout Rates on Students and Institutions

Student absenteeism has consequences that extend beyond the academic environment.

For students, the impacts may include:

• Postponement of Career Goals

Putting one's undergraduate studies on hold often means postponing career opportunities, salary increases, and professional development.

In addition, returning to college after a period of absence tends to be more complicated, whether due to financial, family, or professional reasons.

• Frustration and loss of perspective

Abandonment can also have significant emotional impacts, leading to feelings of failure, insecurity, and frustration over life plans that have been cut short.

For educational institutions, the effects are also significant.

• Financial inclusion as a retention strategy

In light of this, financial inclusion emerges as one of the strategies that can help reduce tax evasion.

In practice, this means creating opportunities that allow students to better manage their finances throughout their undergraduate studies, reducing the impact of unforeseen financial setbacks and increasing their chances of staying in school until they graduate.

In recent years, various solutions have been gaining ground in the education market, combining technology, flexibility, and a broader perspective on the student's journey.

• Educational Payment Plans

Expanded installment payment plans allow students to spread the cost of their undergraduate education over time, reducing the immediate impact of tuition on the family budget and providing greater financial predictability.

By offering flexible payment options, these alternatives help students weather periods of greater instability without jeopardizing their academic progress.

• Financial Support Solutions

In addition to traditional financing models, the education sector has been incorporating more flexible alternatives that help students manage the costs of college without jeopardizing their academic progress.

These initiatives help ensure that temporary financial challenges do not become permanent barriers to continuing one's education.

• Scholarships and Incentives

Institutional scholarships, merit-based programs, and incentives tied to academic performance continue to play a significant role in student retention.

More than just reducing costs, these initiatives strengthen the bond between students and the institution and improve students’ chances of completing their degree.

Financial benefits that encourage retention

In addition to financial aid solutions, some institutions and organizations in the educational ecosystem have been investing in programs that provide financial benefits throughout students’ academic careers.

Among these initiatives are benefits tied to tuition payments, such as cashback programs that refund a portion of the amount paid to the student. Although the formats vary among institutions, the goal is to encourage financial planning and provide savings throughout the course of study.

In practice, these resources can help offset recurring expenses associated with college life—such as transportation, food, course materials, and technology—thereby contributing to a more sustainable academic experience.

For institutions, initiatives of this kind represent an opportunity to enhance the perceived value of the educational experience, strengthen relationships with students, and support retention strategies.

When Financial Support Becomes a Long-Term Arrangement

Although every student has a unique path, certain scenarios help illustrate how financial inclusion can positively influence retention in higher education.

Imagine a medical student who had to move to another city to fulfill her dream of attending college. In addition to tuition, she has to cover the costs of housing, food, transportation, and academic supplies.

After an unexpected change in household income, continuing one's studies becomes a constant concern. Without alternatives for financial support, dropping out of college becomes a real possibility.

With access to solutions that enable better financial planning and improved management of educational costs, this student is able to reorganize her budget and continue on her academic path.

In another scenario, an institution notices an increase in requests to defer studies due to financial difficulties. In response, it expands its installment payment options, strengthens incentive programs, and begins offering alternatives that help students manage their academic expenses.

As a result, there has been a decrease in dropout rates and an improvement in retention rates.

The movement has also spurred the development of initiatives aimed at financial inclusion in the educational setting. Companies, educational institutions, and specialized organizations have been creating solutions that help students better plan their academic journey and address financial challenges that may arise during their undergraduate studies.

The b.Uni is an example of an organization within this ecosystem, operating at the intersection of education, technology, and financial services. More than just offering specific solutions, initiatives of this kind reflect a growing trend in the sector: using innovation to create conditions that promote access to, retention in, and completion of higher education.

Nevertheless, reducing dropout rates requires an integrated approach that combines financial support, academic guidance, institutional support, and retention strategies tailored to students' needs.

The future of higher education depends on retention

The debate over the future of higher education needs to go beyond enrollment figures.

Expanding access to higher education will continue to be a key objective for the country's development. However, ensuring that students stay in school and complete their education will be one of the major challenges in the coming years.

University dropout rates represent a loss of human potential, a reduction in career opportunities, and a waste of investments made by students, families, institutions, and society itself.

In this context, financial inclusion is no longer merely an economic issue but plays a strategic role in building a more accessible, sustainable, and inclusive higher education system.

Institutions that succeed in integrating technology, innovation, student support, and financial aid will be better equipped to address the challenges related to student retention and the training of qualified professionals.

More than just making it easier to enroll in undergraduate programs, it will be necessary to create mechanisms that enable students to complete their entire academic journey and earn their degree.

Because democratizing education does not simply mean opening the doors to the university.

It means ensuring that those who are admitted have the actual ability to stay, learn, and complete their education.

How is your institution preparing to support students throughout their entire academic journey?

Rethinking strategies for student retention, financial inclusion, and student support can be an important step toward building a higher education system that is more sustainable, accessible, and aligned with the challenges facing future generations.

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