NACUBO
February 12, 2025 Enrollment Management Trends, Value and Affordability
Data from the 2024 NACUBO-Commonfund Study of Endowments (NCSE) reveal that 658 U.S. colleges and universities and affiliated foundations rely on their endowments to support student financial aid, faculty and staff salaries, operating budgets, and more. The 658 institutions in this year’s study represented a total of $873.7 billion in endowment assets. Over the past decade, FY21 generated the highest return for endowments (30.6 percent). The highest FY24 return, an average of 13.0 percent, came from institutions with endowments under $50 million. Specifically, 10-year annual returns were identified as a key measurement of endowment performance, making this spending feasible. In total, participating institutions withdrew $30 billion from their endowments during the fiscal year, a 6.4 percent year-over-year increase. A majority of endowment spending (48.1 percent) funded student financial aid. Endowments operate on the principle of intergenerational equity, meaning that endowment values should be preserved in real (after inflation) terms so that students of future generations will have the same level of endowment support as generations past and present. Higher education institutions rely on their endowments thanks to sound financial management.
HIGHER ED DIVE
February 04, 2025 Enrollment Management Trends, Value and Affordability
According to the State Higher Education Executive Officers Association’s (SHEEO) annual Grapevine report, state funding for higher education in fiscal 2025 rose 4.3% year over year before inflation and by approximately a third from five years ago. SHEEO defines State funding as tax appropriations, nontax support, nonappropriated support and returns from state-funded endowments. Excluding federal stimulus money, 41 states increased or maintained their higher ed funding while nine decreased their spending. Specifically, State allocations of federal funding rose 2.2% in fiscal 2025 compared to 2024. In 2020, states allocated over $10 billion of federal stimulus funding to higher ed to further assist with the impact of the COVID-19 pandemic. Recently, inflation in the sector has increased and costs for institutions rose 3.4 % in fiscal 2024 (HEPI).
HIGHER ED DIVE
January 27, 2025 Pre-College Outreach, Admissions, Enrollment Management Trends
The Western Interstate Commission for Higher Education (WICHE) recently predicted high school graduates will peak between 3.8 million and 3.9 million. After 2025, the population is expected to decline in 2030 to 3.1% lower than 2023 levels and 10.5% lower in 2041. The estimated decline in graduates is largely determined by birth rate, how quickly students’ progress through high school and earn diplomas, migration and mortality patterns, and the college-going rate. Specifically, 38 states are expected to experience declines while 12 states and Washington, D.C., will actually see increases. Overall, the decline in high school graduation rates will cause national workforce challenges and shift the ethnic and racial makeup of high school graduates. Proactive solutions to manage the expected decline include improving the immediate college-going rate of high school graduates and the progression and retention of students who do enter college.
The Chronicle of Higher Education
January 10, 2025 Admissions, Enrollment Management Trends
The effects of the Covid-19 pandemic led many higher education institutions to adopt test-optional admission requirements. Recent federal data from the National Center for Education Statistics (NCES) indicates that the vast majority of higher education institutions remain test-optional. The data also reveals additional changes in the admissions landscape, including a downward trend in yield rates, a move away from legacy admissions, and the ability to report where nonbinary students applied to college.
University Business
January 02, 2025 Admissions, Enrollment Management Trends, Value and Affordability
Predictions regarding the state of higher education for the 2025 academic year are being closely assessed. Institutions are investing in digital tools to enhance online learning and lower costs compared to traditional on-campus learning. The growing demand for online degrees allows for increased revenue without the need to incorporate infrastructure costs. Another area of interest is the implementation of Artificial Intelligence (AI) to assist with simplifying the transfer process and enhance pedagogical learning. Recently, Gen Z’s showed greater interest in blue collar jobs that provide them with an alternative career path. Also, students are more closely examining the return on investment (ROI) and the overall value of their education.
HIGHER ED DIVE
December 16, 2024 Value and Affordability
According to the Higher Education Price Index (HEPI), operating cost increased 3.4% in fiscal year 2024. Over the past 40 years, the HEPI has outpaced the Consumer Price Index (CPI) which was largely influenced by ongoing inflation rates. Being that higher education is a labor-intensive industry, professional faculty and staff salaries account for 35% of the HEPI with clerical costs, fringe benefits, and administrative salaries proceeding the next heaviest weighted costs. Since 2016, faculty salaries have recently had a 3.8% yearly increase, but has not increased past last year’s 4% growth.
HIGHER ED DIVE
December 11, 2024 Pre-College Outreach, Admissions, Enrollment Management Trends
The Western Interstate Commission for Higher Education (WICHE) stated there will be a greater decrease in high school graduates, projecting a 3.1% decline in 2030 and a 10.3% decline in 2041. The Covid-19 pandemic was identified as the main contributing factor to the decline in high school graduates. Currently, higher education institutions are being proactive in mitigating potential financial struggles caused by a decline in college enrollment. Solutions to help encourage high school students’ college attendance entails increasing high school advising, reducing college cost, simplifying the process for attending, and providing more support to college students.
Inside Higher Ed
December 03, 2024 Pre-College Outreach, Enrollment Management Trends
The National College Attainment Network recently reported a 5% decline in 18-year-old 2024 college enrollment compared to 2023. This analysis was conducted to assess the impact of widespread FAFSA issues last year, caused an 11.5% decline in completion rate and delayed the release of financial aid packages for students. Other noted contributors to the decline in enrollment was the ban on affirmative action and opportunities for high school graduates to enter the workforce during a relatively strong economy. The likelihood of students enrolling into a higher education institution and obtaining a postsecondary degree greatly diminishes without students’ immediate transition to college. The decline in freshman enrollment could have a long-lasting impact on students and higher education institutions.
HIGHER ED DIVE
November 15, 2024 Pre-College Outreach, Enrollment Management Trends, Student Success
The House of Representatives recently passed the FAFSA Deadline Act, requiring the U.S. Department of Education to make the Free Application for Federal Student Aid (FAFSA) form annually available by October 1. This policy would take effect for the 2026-27 FAFSA. The bill received overwhelming support after initially being rejected by a majority of house lawmakers. The bill seeks to allow users to complete the FAFSA form without experiencing complications in order to receive access to timely financial aid.
HIGHER ED DIVE
October 23, 2024 Admissions, Enrollment Management Trends
There has been a 3% increase in fall 2024 undergraduate enrollment compared to fall 2023. This increase in enrollment can be driven by students who previously started their first year of college and/or completed dual enrollment in high school. Specifically, data has shown a 1.9 % increase in bachelor’s degree programs, 4.3% increase in associate degrees, and 7.3% increase in certificate seekers. On the other hand, enrollment amongst first-year students has declined by 5%, signifying potential cracks in the K-12 pipeline. The National Student Clearinghouse Research Center also discovered an increase in re-enrollment of students who previously left college without completing a degree or credential.