More students are forgoing four-year college, new reports show
Years of rising college costs and concerns about student loan debt are pushing some high school students to turn to shorter, less expensive alternatives to four-year education.
It is now clear that students are placing greater emphasis on career education and post-university employment, more often opting for two-year degrees or even shorter-term degrees.
The overall rate of high school graduates choosing to enroll in community colleges and short-term certificate programs is rising, according to a new report National Student Clearinghouse Research Center.
Enrollment in undergraduate certificate and associate degree programs increased by approximately 2% in fall 2025, while enrollment in bachelor’s degree programs increased by less than 1%, the report said. Community colleges now enroll 752,000 students in undergraduate certificate programs; this is a 28% increase from just four years ago.
The report found that the increase in undergraduate enrollment overall was due to more students choosing to attend community college. “Community colleges led with a 3% increase this year, driven by increased interest in shorter-term certificate programs for work,” said Matthew Holsapple, senior research director for the National Student Clearinghouse Research Center.
First of all, community college is significantly cheaper. Tuition and fees at two-year public schools averaged $4,150 for the 2025-2026 academic year. University Board. Alternatively, in-state tuition and fees at four-year public colleges averaged $11,950, and at private four-year schools these costs averaged $45,000.
To help cover this cost, many students take out loans to cover college costs, causing student loan balances to balloon. This debt burden has become even more difficult to manage: Nearly 9 million education loan holders are currently in default, according to one study. last prediction from the advocacy group Protect Debtors.
Of those with student loan debt, 77 percent say it is a “huge burden,” and 63 percent say their education is not worth the impact of student loan debt on their overall well-being. EdAssist from Bright Horizons.
“Community colleges are accessible, affordable and accredited, offering traditional transfer programs and related workforce training without undue debt burdens,” DeRionne Pollard, president and CEO of the American Association of Community Colleges, said in an email.
The ‘safety premium’ of a university degree is decreasing
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College experts say the worst-case scenario is taking on student debt and graduating unemployed.
At the same time, the job market for new graduates is shakier than it has been in recent years.
While the boom in artificial intelligence is rapidly reshaping the workforce, eliminating some entry-level jobs for college graduates altogether, employers are projecting just a 1.6% increase in hiring for the Class of 2026 compared to the Class of 2025. National Association of Colleges and Employers. Some experts say this is the beginning of an AI-induced white-collar recession.
An analysis by Goldman Sachs in 2025 found that the “safety premium” of a college degree is decreasing. The firm found that although college graduates are still less likely to be unemployed than their counterparts without a degree, the advantage is smaller than it has been for decades.
Pollard said the benefits of a two-year degree, professional program or other type of certification “are magnified in an environment of economic uncertainty, making community college not only a smart option but also a necessary option for many students.”
Meanwhile, other research shows that a shortage of skilled tradespeople is increasing the number of job opportunities and wages in industries such as nursing, manufacturing and construction. Average salaries for some in-demand trade jobs are well above this $100,000 per yearIndeed, according to the job site.
Workforce Pell Grants create ‘new opportunities’
There is even more incentive to continue short-term training programs from July.
Education Undersecretary Nicholas Kent said in a statement that the program “will strengthen connections between higher education, states and employers to ensure more students graduate from high-quality, short-term programs with the skills needed to succeed in our economy.” The Department of Education has also stepped up efforts to warn students about the “benefits and risks” of borrowing money for a college education.
For students worried about the cost of education, the new workforce Pell Grant program is “super valuable funding,” said Jill Desjean, director of policy analysis for the National Association of Student Financial Aid Administrators.
“I can imagine this will open up new opportunities for students who couldn’t afford these programs in the past and don’t have other ways to pay for them,” Desjean said — especially “if the field they want to go into doesn’t require a two- or four-year degree.”
