What States Can do to Help College Students Get Child Care Support

Child care in the United States is failing families. It’s too expensive for parents and pays too little to caregivers. In 45 states, the average monthly cost of child care for two children exceeds the average mortgage payment. In all 50 states, it’s higher than the average rent. Even more shocking, in 39 states, the yearly cost of infant care in a center is higher than in-state college tuition.

Now imagine paying for both college tuition and child care at the same time. That’s the daily reality for many student parents.

The Child Care and Development Fund (CCDF) is currently the country’s best answer to this child care crisis. The federal program helps make child care more affordable for low-income families, including student parents. It provides federal funding to states, which they use to offer child care subsidies for families with children under 13, focusing on children under five. States design their subsidy programs within federal guidelines, determining eligibility based on income (below 85 percent of the state median), family size, and work status. Usually, families apply through a state agency and can use a voucher to choose from participating child care providers. Occasionally, states provide funds directly to child care providers. Because of this design, many changes that can better support student parents are in the power of states to implement.

Unfortunately, CCDF’s funding level only allows it to help a small minority of eligible families. Less than 2 million families received CCDF assistance in fiscal year 2021—just 15 percent of children who met federal eligibility criteria and 22 percent of those who met their state’s criteria. Inadequate funding also forces states to cut costs in other ways, like adjusting income eligibility limits to much lower levels than the federal level for the program and offering low reimbursement rates to providers.

The mismatch between families who need help and CCDF funding hits college students hard. In 2018, around 110,000 student-parent families received child care assistance—only around 13 percent of the students were estimated to be eligible.

Parents paying for child care and tuition are in particular need of these subsidies, but several barriers limit student parents’ access to these subsidies:

1. Complex and Burdensome Application Processes

Research shows that decreasing administrative burden increases the usage of CCDF funds. But often, applications are burdensome. Application processes vary widely across states —and are often overly complicated. A review by New America’s New Practice Lab found that of the applications they reviewed (37), 15 were available only in PDF and many were long and complex. For example, in Wisconsin, parents must:

• Create an account
• Submit all eligibility documentation, such as a Driver’s license, the child’s Social Security Number, a certified copy of the child’s birth certificate, proof of citizenship for children who need the subsidy, proof of address, the last 30 days of dated paycheck stubs, and cooperating with the Child Support Agency to name and document a non-custodial parent.
• Schedule and complete an eligibility verification interview. The website does not indicate whether the interview is in person or on the phone or how long it will last.
• Find and choose a provider who accepts subsidies. This is a real challenge in many states and even college campuses where many centers don’t take these vouchers.
• Do the whole thing over again each year.

This complex process creates delays that often don’t align with class enrollment timelines. To help prevent fraud, there are limits on how much a college can support parents in accessing the benefit. Students have to apply themselves with a college advisor only giving them guidance. Even after they apply, in a state with no waitlist, there is a delay in determining eligibility, making it difficult for students to find a provider and enroll in classes.

2. Long Wait Lists and Low-Income Thresholds

Around one in five states need waitlists to manage CCDF subsidy demand, especially those with higher income limits. States without waitlists tend to manage the demand for child care subsidies by setting their income thresholds much lower, leaving out many people who need subsidies. This reality is evident in the numbers: Nearly two-thirds of states with waitlists set income limits at or above 175 percent of the federal poverty level.

State agencies face challenges maintaining accurate waitlists. For example, in Massachusetts, 65,000 children receive subsidy assistance, but over 20,000 income-eligible children remain on the waitlist. One Massachusetts community college shared that the state waitlist is nearly a year, making it hard for students to access this resource in time to enroll in classes. To speed up access, the college encourages students to regularly call and check their status, which expedites receiving a voucher.

3. Restrictive Eligibility Requirements for Students

Some states impose additional requirements on student parents, making qualifying for child care assistance harder. According to a review of states’ CCDF plans by the Hope Center:

• Eight states (Arizona, Kansas, Nevada, New York, Oregon, Pennsylvania, Utah, and Wisconsin) require students also to meet a work requirement. In Arizona, for instance, a student taking a full-time class load, equivalent to 40 hours of work hours a week, would also have to work 20 hours a week to be eligible for CCDF. Students working 20 or more hours a week are twice as likely to drop out of school.
• Some states limit parents' time in college to remain eligible for benefits. Particularly notable are the five states that limit college enrollment to two years. Given that many parents need longer to complete their studies, this timeline may not even allow them to complete an associate's degree, much less a bachelor's degree.

These rules create unnecessary hurdles for student parents to access affordable child care.

How States Can Help Student Parents Access Subsidies

While CCDF is federally funded, states have wide latitude in how the program is designed, implemented, and accessed, making state policy a key lever for reform. The federal government should add more funding to CCDF, and colleges can play a role in better-connecting students to this benefit. However, because the program flows through the states it makes sense for states to lead in addressing these problems. To improve access to child care subsidies for student parents, states should:

Allocate child care subsidies through state college systems.

New York State offers a model by allocating part of its child care subsidy through an agreement with its public college systems (SUNY and CUNY). These funds support on-campus child care centers and provide direct subsidies to eligible student parents. In 2023, New York allocated $2.2 million in subsidies for low-income families at SUNY and CUNY.

Prioritize student parents for child care subsidies.

States should prioritize student parents as a designated population for child care subsidies, as Georgia has done.

Simplify and streamline the application process.

States should follow the US Digital Response recommendations to:

• Clearly answer common questions to help families decide whether to apply. Write clear answers to the most common questions on the program homepage in plain language. The top questions include:

● Am I eligible?

● How much can I expect to get?

● How long will it take to apply?

● When will I start receiving funds?

● What paperwork do I need to gather?

• Offer support throughout the application process. Through phone or chat, people should be able to get their questions answered and add a place to check their application status online. For instance, Georgia has a pilot program to help student parents complete the application on campus.
• If an application is denied, provide reasons and clear next steps. In the decline message to families, describe specific reasons why the application was declined in plain language. Share clear next steps the applicant can take, such as a URL to visit or phone number to call.

This would make it faster and easier for student parents to access the benefits they qualify for.

Eliminate work requirements and time limits for student parents.

Requiring student parents to work, particularly more than 20 hours a week, while attending school creates unnecessary barriers. Removing this requirement would help more student parents access much-needed child care assistance. At the same time, capping the time student parents can spend in college and be eligible for subsidies is a particular burden for student parents who may need to proceed through college at a slower pace because of competing demands.

Increase funding to help expand access and reduce wait lists.

States should supplement CCDF funding to increase access and address wait lists, particularly for student parents. For example, in 2022, New York Governor Hochul announced a $15.6 million expansion of child care funding for CUNY and SUNY campuses.

The Bottom Line

Child care plays a crucial role in helping student parents stay enrolled and complete their education. By ensuring access to affordable, reliable care, we can protect state and federal investments in higher education and support workforce development. When student parents can finish their degrees, they are better equipped for higher-paying jobs, strengthening both the economy and the workforce.

By reducing policy barriers and increasing funding, states can significantly expand access to child care subsidies for student parents. This would ease their financial burden, improve their chances of completing their education, and ultimately create a better future for their families.