New data: Associate degrees, community college on the rise as students ditch traditional 4-year bachelor’s

A new report from the National Student Clearinghouse Research Center (NSCRC) shows that more students are seeking out an associate degree first over a four-year bachelor’s degree.

Surpassing those aged 21 to 24 for the first time, students aged 18 to 20 represent the largest share of first time associate degree earners in the 2024-25 academic year.

That academic year, of the 2 million students who earned a bachelor’s degree, 532,464 of them had a prior postsecondary credential—either a certificate, associate or bachelor’s/masters degree. And of those, 419,766 students completed the bachelor’s degree pathway from an associate degree, accounting for the largest percent (78.8%).

Clearly, choosing to receive a two-year degree before moving on to complete a bachelor’s is an accessible and popular way to a postsecondary education—and the trend seems likely to continue.

According to an earlier report by the NSCRC, community college enrollment saw a 3% increase in fall 2025, which drove overall growth in undergraduate enrollment. Meanwhile, private 4-year colleges saw a declines of 1.6% at nonprofit institutions, and 2% at for-profit institutions.

Why the trend? The cost of college is a glaring factor, which could contribute to the appeal of community college. For the 2025-26 academic year, CollegeBoard reported the average budget for full-time students at a public two-year institution ranged from $21,320, while the budget for a private nonprofit four-year institution ranged from $65,470.

The federal government has also been ramping up funding for community colleges, aimed at supporting and prioritizing students in the labor market. The Department of Labor has issued five rounds of Strengthening Community Colleges Training Grants, part of a program that began in 2020. The grants aim to address skill development needs to employers, support workers in gaining such skills to reach employment, and help students overcome career barriers to find quality jobs.

And this February, the U.S. Department of Labor announced a sixth round of grant funding, including $65 million to support community colleges in training opportunities through Workforce Pell Grants.