- Recent reports indicate that college enrollment is struggling and six-year completion rates are stagnant.
- Rising tuition costs and ballooning student debt balances are causing more students to question their return on investment.
- Although large-scale loan forgiveness is off the table, “the debate about the value of college continues,” said Sallie Mae spokesman Rick Castellano.
Even before the Supreme Court blocked President Joe Biden’s pardon plan student loanfewer students enrolled in college.
Nationwide, Registration The effort has been delayed since the start of the Covid-19 pandemic, when many students opted not to pursue a four-year degree and instead took jobs or completed certificate programs. is taking.
However, this fall, the number of new students enrolling continued to decline. 3.6% subsidence, according to the National Student Clearinghouse Research Center. The decline was most pronounced in bachelor’s programs at public and private four-year colleges.
“The debate about the value of college continues,” said Rick Castellano, a spokesman for education finance company Sallie Mae.
Completion rate is stagnant
Completion rates at six-year universities are also declining. After many years of steady growth, National Student Clearinghouse Research Center Report found. only about 62% The proportion of students who started college in 2017 graduated, which is roughly unchanged from 2015. Nearly a third, or 29%, of all students who started college that year graduated. Stoppedor put your education on hold.
“This is even worse news for four-year colleges,” said Doug Shapiro, executive director of the National Student Clearinghouse Research Center.
“As of 2023, data shows that not only are there fewer starting pitchers from 2017, but fewer players are still enrolled, and this is not simply a matter of slow progress during the pandemic. That suggests no,” Shapiro said.
How student loans affect admission
Shapiro said higher education as a whole is under pressure. Rising college costs and ballooning student debt balances are causing more students to question the system. return on investment.
Most recent “dropouts” said they put their education on hold for reasons such as: economic obstaclesincluding program costs, inflation and labor requirements, a separate report from Lumina and Gallup found.
As such, low-income students are most likely to opt out.
The study suggests that Biden’s promise to forgive up to $20,000 in debt may have made previously disenrolled students more likely to refuse admission. will re-register.
But that peace never came, and now new plan I’m working on it.
Shapiro said it may be too early to tell what impact that will have on future registrations.
But borrowers are increasingly struggling under the weight of education debt, which now exceeds $1.7 trillion.
Managing such large amounts of debt is especially difficult for those without a degree.
The default rate for borrowers who enroll in college but do not graduate is three times higher than the default rate for borrowers with a diploma.
“While broad debt forgiveness may not be on the table, there are other programs that the Biden administration has put in place,” Castellano said.
Biden has already succeeded in eliminating $127 billion We have resolved education debt for more than 3.5 million borrowers primarily through Public Service Loan forgiveness and income-based repayment plans.
“Students and families still have the option to reduce their payments and ultimately have their loans forgiven,” Castellano said.
