Community Colleges rising in prominence

By 2031, 72 percent of jobs in the US will require postsecondary education and/or training, according to a 2023 report by Georgetown University. The authors contend, “Postsecondary education is no longer just the preferred pathway to middle-class jobs—it is, increasingly, the only pathway.”

But the average cost of college tuition and fees at public four-year institutions has risen 179.2% over the last two decades, according to the Education Data Initiative  and a public seemingly less convinced about the worth of higher education,—two-year colleges, also referred to as community colleges or technical schools, are seen as a reliable alternative for a quality postsecondary education, and are valued for their affordability and accessibility to obtaining the degrees or credentials needed to ensure a dynamic and skilled national workforce.

Two-year colleges have long played a pivotal role in American education by offering an accessible alternative to higher education and serving as a bridge to four-year institutions. At their inception, community colleges were a “distinctively American creation,” with the concept of two-year colleges dating back to the Morrill Act of 1862, which expanded access to public higher education, and were further developed with the establishment of the first junior college in 1901, evolving into what is known today as community colleges or technical schools.

Early iterations of these institutions were designed to provide a comprehensive education or vocational training to those who might not have the opportunity to attend a university: from persons of modest means—those who did not or could not afford to leave their families to pursue greater educational attainment—to Black Americans and women who wanted to go to college but were unable to do so.

During the Great Depression, community colleges began to provide job training programs to ease widespread unemployment. This trend toward job training continued through the 1940s and 1950s. In the 1960s, as baby boomers began reaching college age, the number of community colleges and enrollments soared, and many new public two-year colleges and trade schools were built over the decade.

During the 1970s, community colleges became a major part of the American educational system and were recognized as an integral part of the nation’s educational framework. These two-year colleges and their associated degrees or credentials enabled an even broader demographic to receive a college education and training. These institutions structured accessible and affordable pathways for students seeking skill development, job training, certification, licensure, or degree completion, and the pursuit of greater educational attainments, including future enrollment at four-year universities or colleges.

Today, two-year colleges are located throughout the country in urban, exurban, and rural settings and enroll nearly half of all undergraduates in the United States. They are considered particularly important for first-generation college students, students of color, and adult learners seeking to improve their skills or change careers. They also play a significant role in local communities and economies by providing talent into the workforce pipeline through partnerships with employers and making facilities available for vocational training.

There are more than 1,000 community colleges in the U.S. More than 90% of these are public institutions, according to the American Association of Community Colleges.

While many students use community colleges as a stepping stone to four-year universities with credits earned being transferred, thereby allowing students to continue and complete their bachelor’s degrees at four-year schools at a reduced cost, other students can earn their bachelor’s degrees in specific fields from these two-year colleges. For example, all 34 community and technical colleges in the state of Washington are authorized to offer applied bachelor's degrees involving 165 programs, including nursing and teaching. Read more about Community College Bachelor's (CCB’s) in “The State of Two-Year Colleges is Evolving,” found here.

To further enhance their value, community colleges are ever-evolving to better align with students’ needs, build partnerships with local businesses and industries to grow economies, and to innovate in areas like online education and competency-based learning.

Tuition costs and funding of two-year colleges

While the costs of college vary by state and educational institution, on average, tuition and fees at community colleges were slightly under $4,000 ($3,990) in 2023-24, as compared to the average cost of attending a 4-year, in-state public college at $28,840, and $60,420 at a private institution. Vermont, New Hampshire, Massachusetts, and Pennsylvania have some of the highest tuition rates and fees among public two-year and four-year schools, while California, North Carolina, and Texas have among the least expensive tuition and fees at public institutions.

Overall, public community colleges are mainly funded by state governments through budget appropriations; however, there is a wide variation in how states support community colleges and tuition prices dramatically differ because of these differences. State funding of community colleges is also often based on a hybrid model, with the colleges typically receiving some local funding (the amount determined by the wealth of neighborhoods, localities, or districts). Thus, some states appropriate four or five times tuition support, while in other states, tuition support is two to four times the appropriations.

Public and policymaker perceptions of two-year colleges

The Truman Commission Report coalesced a shift in the perception of community colleges. In 1946 President Harry Truman appointed a special commission to chart a new course for higher education in America. Published in 1947, this six-volume report called for several key changes in postsecondary education. These changes included the establishment of a network of public community colleges, which helped to popularize the phrase "community college." The report also helped shape the future of two-year degree institutions in the U.S. by recommending expanding them to provide universal access to postsecondary education.

Nonetheless, the public’s perception of community colleges has varied—from undervaluing them in comparison to four-year universities to seeing them as vital options or alternatives to four-year universities. This dichotomy has become more pronounced in recent years as the costs of postsecondary education and student debt continue to rise.

Even as Americans increasingly question the value of higher education—particularly as a path to high-paying jobs—and express unhappiness and concerns with the state of higher education, a majority still see the value in obtaining a postsecondary credential. According to a 2024 study (the New America Survey) three-quarters of Americans believe higher education offers a good return on investment for the student. More than 70% of these respondents want their children or family members to earn at least some postsecondary education, even if students need to borrow to attend. Within this context, two-year colleges are much more favorably viewed. A recent survey by Gallup and the Lumina Foundation found that about 48% of Americans have a great deal or quite a lot of confidence in community colleges, compared to 33% for four-year institutions. This confidence is largely attributed to the affordability and value of community colleges. In the same survey, 58% of participants rated community colleges highly for affordability, compared to just 11% for four-year institutions.

The 2023 New America survey found that Americans are much more comfortable with their tax dollars going to support community colleges than any other higher education sector, and felt that states and the federal government underfund these two-year colleges. Per the study, more than eight in 10 Americans (82%) were comfortable with their taxpayer dollars going to community colleges, compared to 69% to public four-year universities; nearly six in 10 Americans (58%) agreed that states and the federal government underfund public two-year colleges, compared to 50% who say the same about public funding for public four-year institutions. The surveyed participants expressed greater support for community colleges than for public four-year institutions. They also believed community colleges better spend their funding and are managed more efficiently than other higher education sectors.

Additionally, in the Best Colleges survey conducted in 2021, a majority of Americans reported having connections with community colleges through family or friends. Almost two-thirds (65%) of the respondents had family members or friends who attended, transferred from, or graduated from a community college; while over one-third (35%) of those surveyed had themselves attended, transferred, or graduated from a two-year institution. Thirty-nine percent of the respondents indicated that they had no connections to community colleges but believed in the educational value and affordability of them; 69% of all respondents favored free community college for either all or most first-time students; and 34% percent of those participating in the survey also reported having a community or technical college in their locality.

Policymakers also view community colleges, technical schools, and vocational training as essential to the education landscape, particularly for their role in providing accessible, affordable, and career-focused education, while elected officials continue to place greater importance on two-year colleges to provide current and future workforce-oriented programs that aligns with business or local labor market needs, fills skills gaps, supports economic growth and provides graduates with economic mobility potentials.

In general, Americans may be having doubts about four-year degrees, and increasingly the public and/or prospective students feel that one does not need a four-college degree to get a good job. Expanding the opportunities of two-year colleges, trade or vocational schools in providing a viable alternative to postsecondary education and a path towards good-paying jobs will be increasingly important.

This article was prepared by SSTI using Federal funds under award ED22HDQ3070129 from the Economic Development Administration, U.S. Department of Commerce. The statements, findings, conclusions, and recommendations are those of the author(s) and do not necessarily reflect the views of the Economic Development Administration or the U.S. Department of Commerce.