For years, concerns about rising college costs and student loan debt have led some high school students to abandon four-year degrees in favor of shorter, less expensive alternative courses.
It is clear that students are now placing more emphasis on career training and post-university employment, with more students opting for two-year degrees and even shorter qualifications.
The overall percentage of high school graduates choosing to enroll in community colleges and short-term certificate programs is increasing, according to a new report from the National Student Clearinghouse Research Center.
Enrollment in undergraduate certificate programs and associate degree programs both increased by about 2% in fall 2025, while enrollment in bachelor’s degree programs increased by less than 1%, according to the report. Currently, community colleges have 752,000 students enrolled in undergraduate certificate programs. This is a 28% increase from just four years ago.
Overall, the report found that increases in undergraduate enrollment were driven by more students choosing to attend community colleges. “Community colleges led the way this year with a 3% increase, as interest in short-term job-based certificate programs continues to grow,” said Matthew Holapple, senior director of research at the National Student Clearinghouse Research Center.
First, community college tuition is significantly lower. Tuition and fees at two-year public schools averaged $4,150 for the 2025-2026 school year, according to the College Board. Additionally, in-state tuition at four-year public universities averaged $11,950, and tuition at four-year private schools averaged $45,000.
To cover that cost, most students borrow money to pay for college, leading to ballooning student loan balances. This debt burden has become more difficult to manage, with advocacy group Protect Borrowers recently estimating that around 9 million education loan holders are currently in default.
According to a Bright Horizons EdAssist study, 77% of people with student loan debt said it was a “huge burden,” and 63% said their education was not worth the impact student loan debt had on their overall well-being.
“Community colleges are accessible, affordable, accredited, and offer traditional transfer programs and related workforce training without taking on excessive debt,” Derion Pollard, president and CEO of the American Association of Community Colleges, said in an email.
The “safety premium” for college graduates is shrinking.
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College experts say the worst-case scenario is for students to graduate with student loans and no job.
At the same time, the job market for new graduates is more unstable than it has been in recent years.
Employers expect to hire only 1.6% more 2026 graduates compared to 2025 graduates, as the artificial intelligence boom rapidly reshapes the workforce and eliminates some entry-level jobs for college graduates, according to the American Association of University Executives. Some experts say this is the beginning of an AI-driven white-collar recession.
A 2025 analysis by Goldman Sachs found that the “safety premium” for college degrees is shrinking. While college graduates are still less likely to be unemployed than those without a degree, the advantage is smaller than it has been in decades, the firm found.
The benefits of two-year degrees, vocational programs and other types of credentials are “amplified in an environment of economic uncertainty, making community college not only a smart option, but a necessity for many students,” Pollard said.
Meanwhile, other research has shown that a shortage of skilled tradespeople is increasing job opportunities and wages in industries such as caregiving, manufacturing and construction. Some in-demand trade jobs have average salaries well over $100,000 a year, according to job site Indeed.
Workforce Pell Grants create “new opportunities”
From July, you will be even more motivated to participate in short-term training programs.
Under President Donald Trump’s “Big and Beautiful Bill,” which Congress passed last year, students enrolled in workforce training programs at community colleges could be eligible for Pell Grants, a type of grant based solely on financial need. The grant is worth up to $7,395 in the 2025-26 academic year. Previously, these funds were only available to undergraduate students pursuing a degree.
The program will “strengthen connections between higher education, states and employers, allowing more students to graduate from high-quality, short-term programs with the skills they need to succeed in the economy,” Education Undersecretary Nicholas Kent said in a statement. The Department of Education is also stepping up efforts to warn students about the “benefits and risks” of borrowing money for a university education.
Jill Dejean, director of policy analysis at the National Association of Student Financial Aid Administrators, said the Pell Grant program is an “invaluable resource” for students who are worried about paying for their education, adding to the new workforce.
“I can imagine this opening up new opportunities for students who previously couldn’t afford these programs and didn’t have other ways to pay,” Dejean said, especially “if the field you want to go into doesn’t require a two-year or four-year degree.”
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