For the second year in a row, fewer students earned college degrees, a trend fueled by rising costs and student debt. Despite this decline, more students than ever earned certificates. This suggests a shift towards shorter-term and vocational programs, as students prioritize job training over traditional four-year degrees. The decline in degrees is also attributed to the ongoing pandemic, a problematic FAFSA process, and state funding cuts for higher education.
More students are dropping out of college, with 40 million currently unenrolled. Financial concerns are a major factor, especially for first-generation, minority, and low-income students. Over 26% of current undergrads consider leaving or face dismissal. Experts highlight the importance of financial planning and support for these vulnerable students.
Several universities are expanding their financial aid programs, providing more students with the opportunity to graduate debt-free. Vanderbilt University will offer full-tuition scholarships to families earning up to $150,000 annually, while Dartmouth has increased its income threshold for zero parent contributions to $125,000. These changes come amid concerns that rising college costs may deter enrollment, especially among lower-income families.
The US Department of Education is facing criticism over ongoing issues with the Free Application for Federal Student Aid (FAFSA). Former student loan official Wayne Johnson has accused the department of "malicious negligence" for technical problems preventing students from accessing and completing forms. This has delayed award letters, leaving applicants in limbo and potentially reducing college enrollment as happened during the COVID-19 pandemic. Republican lawmakers and financial aid administrators are also expressing concerns, highlighting a need for quick resolutions.
