Finances, Lack of Trust Impact Student Re-Enrollment

The cost of higher education continues to pose a threat to student retention and success, with over half of learners with some college but no degree unable to re-enroll due to financial constraints.

New data from ed-tech group StraighterLine and UPCEA, the online and professional education association, found over half of stopped-out students (58 percent) disagree that their current financial situation will allow them to afford tuition and related experiences for their education; but among those previously enrolled in a degree program, the motivating factor to re-enroll would be to improve their salary (53 percent).

“The contrast reveals a critical issue: while many individuals seek higher education to boost their incomes, they are often unable to afford it due to skyrocketing tuition costs,” according to the report.

Survey respondents indicated they are academically and mentally prepped to handle college, but financial constraints keep them from going back to school. Students who left their institution were less likely to consider higher education trustworthy and important to their future goals.

The background: Across the U.S., 36.8 million Americans have started some postsecondary education but did not earn a credential or degree, growing by 2.3 million students from January 2021 to July 2022 alone, according to data from the National Student Clearinghouse Research Center.

As institutions scrounge for students to enroll and counter the looming demographic cliff, targeting stopped-out students is an opportunity to enroll highly motivated learners. For institutions focused on retention, the “some college but no degree” population paints a picture of challenges and barriers to student success.

During the 2022–23 academic year, students over all who re-enrolled were most likely to pursue an associate degree (52 percent), but those who had started a bachelor’s degree program were most likely to return to their four-year degree (57 percent).

Buck stops here: The survey asked students to consider their college readiness factors, including academic preparation, mental resilience, flexibility, learning environment, financial readiness and time management skills.

Eighty-eight percent of respondents agree they are proficient in essential academic skills (reading, writing, mathematics and critical thinking) and 86 percent agree that they are competent in using tech for research, coursework and other learning activities. Similarly, 81 percent say they are adaptable and can persevere when faced with obstacles, and 71 percent say they can cope with stress and challenges.

Stopped-out learners are also invested in their education, with 63 percent agreeing they would devote the time and effort needed to complete their program of study. The primary motivating factor for re-enrollment would be to improve their salary (53 percent). Forty-four percent want to complete as a personal goal, and 38 percent want a career change.

However, over half (58 percent) disagree that their current financial situation will allow them to afford tuition and related experiences for their education; only 22 percent agree.

Improving trust: Fewer than half of stopped-out students (42 percent) agree with the statement that colleges and universities are trustworthy, and just under one-quarter of those who were enrolled in a degree program believe earning a degree isn’t necessary anymore.

Those who did think colleges were trustworthy or communicative were more likely to re-enroll, showing how institutional efforts to build trust and support students while enrolled can impact their future decision-making.

But only about half of current students believe their administrators are trustworthy. A May Student Voice survey by Inside Higher Ed and Generation Lab found 52 percent of students say they have at least some trust in their president or executive-level officials to ensure students have a positive campus experience.

Colleges and universities should tailor their approach to address the interests and needs of prospective students to build trust and make learners feel seen and heard, according to the white paper. “With this understandable lack of trust and potential perception of a lack of value, it is essential that institutions are thoughtful in their attempt to build relationships.”

Administrators should also highlight postgraduation support services offered by the institution, such as career counseling, internships and professional development that can help graduates reach their goals. A September report from Tyton Partners found only one-third of stopped-out students were aware of career advising at their college.

Getting back to class: Over all, students who started a certificate program are slightly more likely to be ready to re-enroll, compared to their peers who were in a degree program, but both had a normal distribution, with most falling in the “somewhat ready” category.

The survey results demonstrate that students who were mentally prepared to handle challenges (including having a conducive learning environment, coping with stress, willingness to devote time and effort, and open to adaptation), who held positive opinions of higher education institutions and who saw the value of a degree or certificate were most likely to re-enroll.

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