Allstate is launching a new education programme, which is aimed at ensuring that students who are on a scholarship or whose parents’ income is above a certain threshold are offered financial education.
Allstate’s new “National Financial Education Fund” is a $2bn (£1.5bn) investment to give financial aid to disadvantaged students.
It is the latest of a series of moves by the education company that have been launched to help it better serve its clients.
The National Financial Education fund is the biggest single programme Allstate has ever launched, according to Allstate chief executive, Mark Rippon.
The fund is designed to help students who have financial barriers to access education and to enable them to secure financial aid in their first year.
“We have a massive amount of students that need assistance, that need help,” he said.
“This is our first step.
But we’ve got some big challenges ahead of us.”
The National Fund will provide grants to up to 40,000 students across the US, and will help them to: pay for school materials, pay for books and fees, get financial support for living expenses and for the cost of their exams, and access financial literacy training.
All state schools are to be eligible for the fund.
Mr Rippons plan is to launch the fund by 2020.
He said the fund would help disadvantaged students because they are the ones with the most barriers to accessing the education system.
“It’s a significant opportunity for students to be able to get financial aid and then be able access that financial aid,” he told the BBC.
The aim of the National Fund is to ensure students who need financial assistance can access financial aid without having to worry about their parents’ or teachers’ financial situation.
But the funding will also be targeted at students from poor backgrounds and those who have struggled financially in the past.
The announcement comes after Allstate was criticised for a controversial announcement last year that the firm was introducing a financial literacy program for its US clients.
At the time, Allstate said the program would help students “underperforming in a classroom setting”.
Mr Riddon said the decision was taken after the company had “remedied” its funding of students who had struggled to get their finances in order.
He added: “Our investment in financial literacy will help these students to build financial independence and, ultimately, improve their academic performance.”
But many students have been critical of the decision, arguing that the funding is not enough and that there are more important things to be doing.
“These are students that have not had the opportunity to receive financial support,” said Mark DeBrick, from the National Alliance for the Academic Success of Black and Latino Students, in a statement.
“They are not students of color, they are students of need, and yet they are denied the opportunity and the financial aid that would allow them to go to school.”
In a letter to the US Senate, students from New York City, a predominantly black community, expressed their concern about the decision.
“The National Financial Literacy Program will help our students succeed academically in their school districts, but it is not a panacea for students of colour, who face the same barriers that we do,” they said.
The letter went on to say that students of Color are underrepresented in colleges and that “the financial literacy initiative will help students of all backgrounds to succeed academially.”