Research has consistently supported the benefits of postsecondary educational attainment for individual labor market outcomes and broader economic stability. States across the country have set ambitious goals around increasing rates of postsecondary credential attainment, but what qualifies as a credential varies significantly. Earlier this month, the National Student Clearinghouse Research Center (NSCRC) released its Undergraduate Degree Earners (UDE) report outlining trends in credentials undergraduate students earned through the 2023-2024 academic year. Findings in the report illustrate demand for different pathways to educational attainment.
In its UDE report, the NSCRC looks at the highest undergraduate award earned by students at participating Title IV institutions. During the 2023-2024 academic year, 3.24 million undergraduate students earned at least one undergraduate credential. Bachelor's degree earners accounted for the largest share (58.8 percent) followed by associate degree earners (25.0 percent) and certificate earners (15.9 percent).
Since 2014-2015, the share of undergraduate students earning an associate degree has declined, while the share of students earning a certificate has risen. Certificate earners still make up a relatively small share of undergraduate earners but have increased rapidly in the years since the COVID-19 pandemic disruption.
Public two-year colleges have long been the predominant institution awarding undergraduate certificates and remain so today. However, public four-year institutions, for-profit colleges, and public primary associate baccalaureate-granting institutions (PABs) have played an increasing role in awarding certificates in recent years. Indeed, recent enrollment data from NSCRC indicated that enrollment in undergraduate certificates at public four-year institutions grew at a rate between fall 2022 and fall 2023 that far exceeded bachelor's degree enrollment (3.2 percent compared to 0.3 percent).
Since the UDE report focuses on the highest credential a student attains, this rise in certificate earners may understate the increased interest in these credentials. Approximately 11 percent of undergraduate degree completers attained multiple credentials in 2023-2024, including 67,000 students who earned multiple certificates and 107,000 completers who earned a certificate alongside an associate degree.
The UDE report identifies two types of completers: those who have never completed an undergraduate award prior to the current academic year (first-time completers) and those who have previously attained an undergraduate award from any eligible Title IV institution (completers with a prior award). In 2023-2024, 73.4 percent of undergraduate credential earners were first-time completers. In 2023-2024, about 370,000 (15 percent) first-time completers earned a certificate.
Roughly 61 percent of completers with a prior award in 2023-2024 had previously earned an associate degree. Since students often pursue associate degrees with plans to transfer to a four-year institution, it makes sense that nearly 80 percent of these students completed a bachelor's degree during the academic year. Students with a prior certificate were far more likely to earn an additional certificate or an associate degree than a bachelor's degree. These students may be taking incremental steps to advance to a bachelor's degree or work in fields that require a range of stackable sub-baccalaureate credentials.
Interestingly, more than half of all students whose highest level of attainment was either a master's or bachelor's degree prior to 2023-2024 earned a lower-level credential. Nearly one-third of these students earned a certificate.
When we look at the distribution of undergraduate award earners by the age of earners at completion, clear patterns emerge.
Many completers under the age of 21 were likely dual-enrolled high school students who earned credentials while still in school or those who earned sufficient college credits in high school to accelerate through a degree program after high school. Among traditional-aged graduates (age 21-24), 80 percent of first-time completers and 70 percent of completers with a prior award earned a bachelor's degree. This captures many traditional students graduating high school and moving on to a four-year degree program along with those who earned an associate degree that allowed them to transfer to a four-year institution to earn a bachelor's degree.
Adult learners are an important topic in higher education — particularly adults over the age of 25 who have never completed a postsecondary credential. First-time completers in the three highest age groups predominantly completed associate degrees or certificates. Adult students often have significant responsibilities outside of school that make two- or four-year full-time programs unrealistic. Many are working full-time jobs and are established in careers. Caregiving responsibilities are also a barrier. Certificates may offer a shorter-term flexible option for adults to climb the career ladder or pivot to a new field entirely.
The UDE report suggests that the "traditional" route of earning a bachelor's degree after high school is still the most common postsecondary pathway. An associate degree followed by a bachelor's degree is another popular trajectory, particularly given the rise of college costs and the robust offerings at public community colleges. However, certificates are increasingly attracting a range of students for whom the traditional undergraduate pathway is not feasible. Certificate programs may fit the bill for students who are not ready to commit to a four-year degree pathway or students interested in programs that will fast track them into promising career pathways without taking on significant student debt. Certificate programs may also be more focused on the practical skills required for certain career paths, unlike bachelor's degree programs that are often broader in scope.
A key benefit of certificate programs is often the flexibility they allow states and institutions to design curricula that fit the needs of students and employers in the regions they serve. Credentials that are classified as undergraduate certificates are far more varied in intensity, length, and requirements than degrees.
Critically, the UDE excludes the growing field of non-credit workforce credentials, which community colleges often use to match students and workers with training in high-demand fields. Better data on non-credit programs and the outcomes of students who complete them is key to understanding the full picture of postsecondary pathways.
Views expressed are those of the author(s) and do not necessarily reflect those of the Federal Reserve Bank of Richmond or the Federal Reserve System.
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