The state of two-year colleges is evolving

Two-year colleges have gone through various changes in recent decades. The following are highlights of some of them.

College enrollment

Encouraging more people to attend or go back to college is a vital part of ensuring individual and national economic success, but with rising costs of attending traditional four-year colleges 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.

The landscape of two-year college enrollment has seen significant shifts over the past decade. Although enrollment in such colleges has declined yearly since 2010—community and technical colleges lost 2.5 million students between 2010 and 2022, according to the National Student Clearinghouse Research Center—recent data indicates that two-year colleges are seeing an uptick in enrollment. They gained 118,000 students in the fall of 2023—a 2.6% increase representing the highest growth of any sector in higher education. (The college enrollment rate for 18- to 24-year-olds was 39% in 2022, a decrease from 41% in 2012, while enrollment in two-year institutions declined from 13% to 9%.) As overall undergraduate enrollment grew by 2.5% in the spring of 2024, community colleges experienced the majority of this increase.

The American Association of Community Colleges reports that roughly 6.2 million students are enrolled in community colleges: 2.2 million full-time and 4 million part-time. Sixty-two percent of full-time community college students and 72% of part-time students are working. Demographically, 32% percent of two-year college students are first-generation students. Black, Hispanic or Latinx, and Asian enrollment stands at 12, 28, and 6%, respectively, while white student enrollment, which has been declining, currently stands at 44%. Women represent 60% of enrolled students. Veteran students are slightly more likely to attend public two-year institutions than the national average—38.3% attended public two-year institutions, compared to 35.3% of all students.

A deeper dive into two-year college enrollment data released from the National Student Clearinghouse Research Center’s Fall 2023 report and Spring 2024 Preliminary report found:

• Black, Latinx and Asian students accounted for most undergraduate and graduate growth. Enrollment at public two-year institutions in fall 2023 grew for Hispanic (5.5%) and Asian (6.3%) students, continuing a trend from 2022. Black student enrollment at these institutions also grew (2.1%) after a small decline in 2022. Meanwhile, white student enrollment trended down -2.1% at community colleges (as well as at public four-year institutions and private, nonprofit four-year institutions). Enrollment for older students (age 30+) at community colleges grew by 2.2%.
• There is a continuing trend of students electing to pursue shorter-term programs, so associates are doing better than bachelor’s, and certificates are doing better than associates: enrollment in associate-degree programs saw a 2.2% increase among undergraduates, adding about 96,000 students (but is still well below fall 2019 levels at-14.2%). In comparison, bachelor’s-degree programs grew by 0.7%, or 63,000 students) and certificate program enrollment also grew, gaining 18,000 students (1.8%). This is the third consecutive year of growth—though the rate of growth has slowed—and certificate enrollment is now 15.6% above 2019 levels.
• Fields like health and computer or information sciences are experiencing significant growth. Enrollment in healthcare programs has rebounded after declines during the pandemic, noting increases in undergraduate certificates (5.7%) and associate degrees (4.4%). Computer and information sciences continued to grow significantly, especially for associate (10.4%) and master’s (13.7%) programs. Some associate programs experienced significant drops, especially biological and biomedical science (-13.1%) and education (-4.1%).
• Enrollment grew 16% at community colleges with a “high vocational program focus,” according to the report, 3.7% above fall 2019 levels.

Going forward, enrollment projections for fall 2024 indicate a stable or slightly increasing trend, as community colleges will continue to attract the diverse group of high school graduates, returning students, working adults, and part-time students seeking career pathways and credentials that can be attained with shorter and more affordable educational training or programs.

The rise of the “toolbelt” generation and evolving vocational education

The term "toolbelt generation" has emerged to describe a trend among Generation Z (Gen Z) for its open-mindedness in embracing the trades over the traditional college pipeline and who are increasingly choosing vocational training and skilled trades over traditional four-year college degrees. About 55% of Gen Z feels pressure to gain professional experience in high school, and 61% want to know their career path before going to college. This shift is driven by various factors, including the rising costs and affordability of a traditional four-year college education, a growing recognition of the value of hands-on skills in the job market and a faster path to competitive salaries and financial stability.

In addition to hands-on experience, vocational schools or programs can offer paid on-the-job training, making them an attractive alternative to traditional higher education. Data from the National Student Clearinghouse Research Center found that the number of students enrolled in vocational-focused community colleges increased 16% from 2022 to 2023. According to the Utah System of Higher Education (USHE) data, enrollment in the state’s eight public technical colleges increased 4.82%, while its degree-granting public colleges and universities, enrollment grew by 1.8% for the same period.

The trend towards vocational education is a response to the evolving demands of the workforce and the need for a more adaptable education system that can provide practical skills and employment opportunities without the significant financial investment of a traditional college education. As such, community colleges/technical/vocational schools are practical alternatives, providing on-the-job training and the potential for well-paying careers without the burden of student debt.

Gen Z is in the process of further redefining traditional postsecondary education, showing that a fulfilling and well-paying career may not require a college diploma but can be built on the mastery of a trade.

Free College

During the last two years of the Obama administration, the idea of the federal government funding a free college option in partnership with states gained traction and support. Over the years, Congress has also explored the idea of free college, coming close to passing legislation that would do so as part of President Joe Biden’s Build Back Better agenda. In the 2024 New America Survey, Americans showed broad support for federal and state government to provide funding to make public two-year colleges free (respondents were more divided about having the government do so for four-year public colleges and universities). Survey respondents also felt that the federal government should provide funding to states to make public two-year colleges tuition-free.

 Nationwide, there are roughly 400 free college programs, and programs exist in all 50 states. According to the National Conference of State Legislatures (NCSL), to address workforce shortages, economic disruptions, and shifting demographics, state policymakers have either expanded or created new financial aid programs to help students pursue a postsecondary degree or credential of value. Among these initiatives are College Promise programs, also known as free-college or free-tuition programs, that offer eligible students the chance to attend college tuition-free.

In general, Promise programs are place-based scholarship programs that make college tuition free for at least one college. While all require residency and a high school diploma, some have additional eligibility criteria—such as a minimum GPA. Other Promise programs may not provide initial funding but will cover remaining costs for students after other funding sources have been denied or exhausted. They range from state-level programs like New Mexico’s Opportunity program, which is a first-dollar program, meaning all expenses are covered for eligible students (and can be used at either four-year or two-year schools), to last-dollar programs, like New York’s Excelsior Scholarship, that only helps students if other financial aid fails to cover their tuition and fees. There are also local place-based programs like the Kalamazoo Promise. Other recent state programs include Michigan’s Community College Guarantee program and Massachusetts’ newly authorized MassEducate program (which will make community college free to all Bay State residents).

All of these programs continue to gain popularity. For example, Massachusetts’ 2023 initiative, MassReconnect made the state’s community college free for students 25 and older. The program drove a 45% increase in state enrollment for this age group and 8% growth across Massachusetts’ community colleges. More than 4,500 community college students across the state’s 15 schools received MassReconnect awards covering tuition, fees, and books. Because of the success, lawmakers expanded the program into the newly created MassEducate, which is open to all residents seeking to attend a two-year college.

In South Carolina, concerns with declines in the state’s technical colleges have resulted in the creation of programs like the South Carolina Workforce Industry Needs Scholarship, which seeks to attract more students into the schools to meet workforce needs. (More than $94 million in recurring funds has been set aside in the state budget for these scholarships this year.) The scholarship covers tuition, fees, and other course-related expenses up to $5,000 per year for in-state students pursuing a certification or degree in an eligible program. With this program, South Carolinian education officials and lawmakers expect a steady enrollment in the coming years, if not growth, in the state’s technical colleges.

The goal of these Promise or tuition-free programs is not just about the price of college but changing the narrative that college is not worth the price. By providing a means to allow potential students to not incur debt for a postsecondary education degree or credential is vital, as research shows that higher education is one of the best paths to economic security. Tuition-free colleges also contribute to diversity and accessibility in higher education, providing a more dynamic workforce.

A study published by the American Education Research Association in 2020 analyzed 33 Promise programs that provided tuition benefits to local two-year colleges. According to the study, colleges with Promise programs saw the greatest enrollment increases in Black and other minority groups, with first-time, initial enrollment increasing 47% for Black men and 51% for Black women, while enrollment of Hispanic males and females jumped 40% and 52%, respectively.

Tuition-free and Promise programs’ successes are not without their criticisms. A study by the Community College Research Center at Columbia University found that 80% of incoming community college students intend to transfer and earn a bachelor’s degree, but only about 25% of students transfer to a four-year institution, and 17% go on to earn a bachelor’s degree.  Critics of Promise programs are concerned that these programs are diverting four-year eligible students into the community college pathway and will be less likely to complete a degree. The National Student Clearinghouse Research Center published a study that showed that 68% of students who started at a public four-year institution completed a degree, while about 43% of students who started at a community college completed a two-year or four-year degree.

Nonetheless, with the rise in costs of a four-year college education and growing skepticism about their return on investment, two-year colleges continue to offer a viable pathway for students seeking postsecondary degrees or credentials, continuing education, career development, or advancement, and the potential for well-paying jobs without the burden of student debt.

Community Colleges offering bachelor’s degrees

As of June 2024, 24 states authorize Community College Bachelor’s (CCB) degrees associated with 191 associates-dominant institutions in the U.S., according to CCB Data Points No. 3, published by the Community College Baccalaureate Association. Other states either limit or do not authorize CCB degrees.

A Georgetown University Center on Education and the Workforce (CEW) study showed that 42% of all U.S. jobs are expected to require at least a baccalaureate degree by 2031. This percentage rose from 19% in 1983 and to 36% in 2021. The CEW study also projects an increase in jobs that previously only required a high school diploma. These occupations include sales and office support, food and personal support, and health care support.

According to CCB Data Points No. 1, CCB degrees are designed to extend postsecondary education and training that prepares individuals for middle-skills credentials. As noted in the document, these degrees often meet labor market demands at the local level, focusing on regional workforce needs.

CCB graduate employment and earnings compared to associate and university graduates of similar programs are reported in CCB Data Points No. 5. This paper focused on emerging research in Florida, Washington, Texas, and California, which the authors note are the four states awarding over 80% of all community college baccalaureate (CCB) degrees in the U.S. The paper reveals that “(t)hese studies … find sizeable increases in salary from before the time students enter CCB programs to after they complete their degrees and enter or progress in employment.” The researchers also investigated the earnings of CCB graduates compared to graduates of associate degree graduates in similar programs of study. They report, “earnings show a more mixed picture, with variation by program and longevity in the workforce.”

Community College consolidation

Community colleges do have their challenges with a number of consolidations occuring in recent years. For example,

• Rich Mountain Community College (RMCC) merged into the University of Arkansas System in 2017 and was renamed the University of Arkansas Community College Rich Mountain.
• Wichita Area Technical College, a two-year public college, became part of Wichita State University in 2018.
• Clinton Community College plans to relocate to nearby SUNY Plattsburgh by the 2025–26 academic year.

Some mergers involve a significant number of institutions. From 2017 to 2018, The University of Wisconsin System merged 13 community colleges into nearby four-year universities. In 2022, The Board of Trustees of the Minnesota State Colleges and Universities voted to approve the merger of the five colleges of the Northeast Higher Education District, including Hibbing Community College, Itasca Community College, Mesabi Range College, Rainy River Community College, and Vermilion Community College, into a single accredited institution with six campuses. The new institution, Minnesota North College, opened on May 23, 2022. And on July 1, 2023, all 12 community colleges in Connecticut became one institution: Connecticut State Community College.

Declining enrollments is a primary reason cited for many recent community college mergers. Another reason is to increase efficiency. And decreasing support from the state can cause difficulties for state-funded institutions.

According to an article in Inside Higher Ed, “John Kowal, president of Clinton Community College, wrote in a statement that the plan to move Clinton Community College to SUNY Plattsburgh was prompted by years of enrollment declines and other financial pressures at the college.” However, he also emphasized that the move is not a merger. “We’ll have our own buildings, our own signs … We are our own entity … We have our own funding structure, governance structure, programs. Everything from that perspective stays the same. It’s just that we’re doing it in another location.”

A press release explained the anticipated positive outcomes for creating Minnesota North College, emphasizing improved operational efficiency as a prime motivator: “Under a one-college model, students will have access to a more robust selection of courses and career programs, which will be accessible across six campuses with a single application and one transcript. Essential student services, such as registration and financial aid, will be simplified while still providing local, on-campus support. A single college will lead to more clear and consistent collaborative efforts with regional K-12 and industry partners as well. The single-college model will lead to improved operational efficiency allowing resources to be better focused on mission-centric functions and improving long-term financial sustainability.”

Note: Michele Hujber, senior writer/editor at SSTI, contributed to this article.

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.