As new students are moving into dorms, purchasing textbooks, and signing up for classes at colleges and universities across the country, administrators are also preparing for some big changes this fall. Let’s talk about some of those changes and how they impact colleges’ bottom lines.
Enrollment shifts
While some analysts have warned of an upcoming demographic shift that could impact college enrollment (i.e., fewer 18-year-olds), high school students who are graduating appear to still be interested in attending college. However, some are skipping the traditional four-year institution and opting for alternative options. Enrollment in shorter programs, such as associate degree and certificate programs in particular, has been growing and was up 4.3% and 7.3%, respectively, last year.
Some high school students aren’t even waiting until graduation to earn college credit. While dual enrollment programs, where high school students can take classes for college credits, have been popular for a long time, many more students are not only enrolling but earning associate’s degrees alongside their high school diplomas. This year, 337 high school students in New Jersey graduated from vocational and technical programs across the state with both associate degrees and high school diplomas, an increase from 86 the previous year.
International students
International students make up a healthy portion of college students in the United States every year, and while that portion varies from school to school, studies clearly show that those students benefit the country. An estimated 1.1 million international students contributed $43.8 billion to the economy and supported more than 378,000 jobs during the 2023-2024 academic year. As noted by the New York Times, “many international students pay full tuition and are a revenue source that schools have come to rely on, including to help underwrite financial aid for other students. It’s part of the business model.”
However, the current political climate has made it even more difficult for international students to set foot on campus this fall. Student visa interviews were first suspended, then resumed with new social media vetting protocols. Many countries have since had limited or no visa appointments available for students, while others have been severely restricted or banned through executive orders.
A new study estimates a 40% drop in new international student college enrollment that could result in a $7 billion revenue loss for the United States. One way colleges are attempting to retain their international students is by steering them toward online degree and course offerings.
Online students
Online enrollment is expected to soon surpass in-person enrollment at many universities. For example, at Arizona State University, an estimated 80,000 students are expected to be taking classes online this fall, a 9% increase from 2024 and slightly more than the 78,000 expected to attend classes in-person.
It’s no surprise that colleges and universities have been leaning heavily into online education after the pandemic as a way to reach more students – and to subsidize their in-person programs. Public and private institutions have been spending heavily on marketing their online degrees, and as online higher education becomes more common, some students are confused as to why online tuition is still so high. According to an annual survey, “83% of online programs in higher education cost students as much as or more than the in-person versions” despite many Americans thinking it should cost less.
