The state of college in 2024

But with persistently rising tuition costs, atypical testing and admission requirements, an unwieldy financial aid process, and the difficulties of repaying student loans, it’s easy to see why some are rethinking the value of higher education.

And there’s more: For many colleges and universities, the pandemic accelerated some changes that were already in the works. Here’s a look at some of the key changes in the world of higher education today.

• Declining enrollments are hitting some schools hard—Enrollment was falling before the pandemic. College enrollment peaked around 2010, when an estimated 18.1 million undergraduates¹ attended a higher learning institution. By 2021, that number had dropped to 14.2 million, a decrease of 22%. The lost revenue has caused some schools to merge, and others to shut down.  

• Majors are being eliminated—A growing number of schools, including West Virginia University, Arizona State University, Manhattan College, University of Kansas, Miami University (Ohio), and University of North Carolina (Greensboro), have already suspended or are planning to eliminate certain majors, largely due to deficits. Most are targeting liberal arts tracks,² including foreign languages, religion, history, and philosophy, but some are also cutting back STEM programs. 

• Test optional is becoming the norm—SAT/ACT testing was once a requirement for admission; over the past decade, however, hundreds of colleges and universities have embraced a testing optional or test-free admission format.³ Some schools have only temporarily cut testing, while others have made it permanent. Dartmouth College and Yale University have recently reestablished testing. 

• Early decision is quickly gaining popularity—The number of students seeking out early admission is increasing, up 41% since the beginning of the pandemic.⁴ There are hundreds of colleges⁵ that offer early decision. Most of them are private, including elite schools such as Georgetown University and Duke University, but a growing number, such as the University of Virginia and University of Tennessee, are public institutions. And it pays dividends: Typically, the acceptance rate for early decision students⁶ is often twice as high as for regular decision applicants.

College or no: make a plan

Before you and your children discuss their future aspirations, be sure to meet with your financial professional who can help you determine the costs of the varied options and recommend strategies to help you meet your goals.