For the first time, state funding to public colleges exceeds per-student funding levels seen prior to the Great Recession

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The latest State Higher Education Finance (SHEF) report finds that in 2022, public higher education appropriations increased 4.9% beyond inflation, surpassing pre-recession per-student funding levels for the first time since 2008. The SHEF report also finds that fiscal year 2022 saw the second largest public FTE enrollment decline since the start of the SHEF dataset in 1980, and tuition revenue continued to decline.

After a short recession in 2020 due to the COVID-19 pandemic, historical patterns following economic recessions reversed in 2021 and 2022. Instead of the typical decrease in state funding following a recession, education appropriations increased for the 10th straight year, rising $932 per full-time equivalent (FTE) from 2020 to 2022. Inflation-adjusted education appropriations per FTE were greater than pre-recession funding levels in 2008, by 3.1% or $304 per FTE. The increase in education appropriations per FTE can be attributed to three notable trends:  increasing state commitments to higher education funding, a sharp decline in FTE enrollment, and generous federal stimulus funding.[1]

Additional findings from this year’s report include:

  • Public FTE enrollment has now declined for 11 straight years to 10.31 million in 2022, down 2.5% since 2021, and down 11.6% from an enrollment peak in 2011. Public institutions have lost almost all the additional FTE enrollment they gained following the Great Recession, and in 2022, FTE enrollment was just 0.4% higher than in 2008. The two-year sector generally had larger enrollment declines across states, taking a larger hit than four-year enrollment in 31 states.
  • State and local government funding for higher education totaled $120.7 billion in fiscal year 2022, including more than $2.5 billion (2.1%) in federal stimulus funding. Inflation-adjusted federal stimulus funding for higher education declined $1.4 billion or 36.4% from fiscal year 2021. Two-year institutions received $55 per FTE in federal stimulus for public operating in 2022, while four-year institutions received $169 per FTE.
  • Education appropriations increased 3.8% at two-year institutions and 4.0% at four-year institutions. Without federal stimulus funding directed by states to higher education and without the decline in FTE enrollment, inflation-adjusted education appropriations still would have increased 3.6% from 2021 and 2.9% from 2020. Although national-level education appropriations have recovered to 2008 levels, 28 states continue funding higher education at a lower level than prior to the Great Recession.
  • State public financial aid per FTE increased 2.0% from 2021 to 2022 and reached an all-time high of $990 per FTE enrolled student. These funds made up 9.7% of all education appropriations. Financial aid per FTE increased in 29 states and Washington, D.C., in the last year. More than twice the amount of state financial aid was awarded to students attending four-year institutions than students at two-year institutions.
  • Inflation-adjusted net tuition revenue decreased 1.0% in 2022 and has declined 5.8% in the last five years. Public institutions received $7,244 per FTE in net tuition and fee revenue in 2022. Public institutions in more than half of all states collected less tuition revenue than they did five years ago. Decreases in net tuition revenue are largely due to increases in state financial aid and minimal tuition rate growth (lower than the rate of inflation). Declines in the last year were significantly worse in the two-year sector: Net tuition revenue per FTE declined 7.4% at two- year institutions and only 0.2% at four-year institutions. Despite recent declines, since 1980, net tuition revenue per FTE has increased in every state and has increased by more than 100% in 44 states.
  • Total education revenue increased 2.4% from 2021 to 2022, reaching an all-time high of $17,393 per FTE. However, total education revenue is at an all-time high in only 11 states, and many institutions are not at an all-time high for total education revenue. Additionally, the increase in total education revenue since the start of the COVID-19 pandemic is explained by federal stimulus funding and the enrollment decline. Excluding federal stimulus funding, and if enrollment had held constant at 2020 levels, total education revenue per FTE would have declined 2.4% from 2020 to 2022. 
  • The student share decreased from 43.1% in 2021 to 41.7% in 2022, and for the first time since 2016, the student tuition and fees funding public higher education comprised less than 50% of total revenues in more than half of all states and Washington, D.C., even after excluding federal stimulus funding. Continued increases in education appropriations and declines in net tuition revenue have reduced the proportion of total revenue financed by students. As states are faced with fewer federal stimulus dollars amidst increasing concerns about student affordability and student loan debt, states must make conscious efforts to continue decreasing the portion of public higher education funded by students and families.

As these findings demonstrate, fiscal year 2022 defied several long-term trends in higher education finance and showed growth in education appropriations. The continued decline in net tuition revenue puts greater pressure on states to not cut funding to public higher education in the coming years. When federal stimulus funds run out, states will face difficult budgetary decisions, and higher education may face cuts in some states.

SHEEO President Robert E. Anderson shared, “We’re pleased to see additional increases in state support for higher education, demonstrating a commitment in many states to fund their public institutions. While we see per-student funding levels come back to pre-Great Recession levels, there is still a long way to go in helping students access and succeed in higher education. The student share continues to draw concerns, and we hope these data help states see areas of improvement and continued opportunities of support for students.”

The SHEF report broadly addresses the wide variation in how states fund public higher education. However, state-specific context is incredibly important when discussing higher education finance trends. “The trends detailed in the SHEF report reflect national and state averages, but there are almost always outliers in every trend. Even within states, there can be wide variation in the enrollment and revenue patterns at each institution,” said Kelsey Kunkle, policy analyst at SHEEO and primary author of the report. “We know that state funding and institutional revenue impact student outcomes, and the negative impacts of low and unequal institutional revenues disproportionately affect students of color and low-income students.”

The full SHEF report paints a more complete picture of differences in public higher education finance across states.

Explore the SHEF website to read the full report and customize the interactive data visualizations. The SHEF website also includes individual state profiles, an additional report on state effort and capacity to fund higher education, and data resources exploring additional higher education finance topics like student residency, performance-based funding, and capital appropriations.

 

About SHEEO

The State Higher Education Executive Officers Association (SHEEO) serves the executives of statewide governing, policy, and coordinating boards of postsecondary education and their staffs. Founded in 1954, SHEEO promotes an environment that values higher education and its role in ensuring the equitable education of all Americans, regardless of race/ethnicity, gender, or socioeconomic factors. Together with its members, SHEEO aims to achieve this vision by equipping state higher education executive officers and their staffs with the tools to effectively advance the value of higher education, promoting public policies and academic practices that enable all Americans to achieve success in the 21st century, and serving as an advocate for state higher education leadership. For more information, visit sheeo.org.

Media Contact

Jessica Duren, Strategic Communications Director, jduren@sheeo.org

[1] Federal stimulus funding allocated to states due to the COVID-19 pandemic is included in education appropriations and total education revenue throughout the SHEF report. Federal stimulus funding contributed to the education appropriations increase in two ways. First, federal funds that protected state revenues and covered additional costs due to the COVID-19 pandemic and economic recession reduced the need to redirect funds from higher education to other budget areas during the pandemic. Second, federal funds given to states and used for higher education operations boosted education operating appropriations.

SHEEO Announces Promotion of Klein and Weeden to Position of Associate Vice President

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WASHINGTON, D.C. – The State Higher Education Executive Officers Association (SHEEO) today announces the promotion of Carrie Klein and Dustin Weeden to the position of associate vice president. Both Klein and Weeden have served SHEEO as senior policy analysts.

Klein joined SHEEO’s Washington, D.C. office in May 2021. She leads SHEEO’s Strong Foundations survey and reporting project, through which she advances SHEEO’s efforts to promote effective use of state postsecondary data resources and P20W connections. Building on prior postsecondary institutional experience and analytics research, Dr. Klein develops productive relationships with partner organizations and provides relevant content expertise and technical assistance to state agency research and data policymakers to improve state and student outcomes.

Weeden joined SHEEO in October 2017, working out of SHEEO’s Boulder, Colorado, office. He leads SHEEO’s research and policy analysis related to state authorization and college affordability.Weeden currently leads efforts directed at helping states prepare for implementation of the FAFSA Simplification Act, and spearheads SHEEO’s focus on improving state consumer protection policies. 

“Both of these team members have done excellent work, taking on increased responsibilities and embodying leadership traits that help advance the work of SHEEO among our member organizations,” said Rob Anderson, SHEEO president. “We are excited to recognize their efforts publicly and look forward to seeing their continued growth.”

Learn more about our team at https://sheeo.org/about/sheeo-staff/.

About SHEEO

The State Higher Education Executive Officers Association (SHEEO) serves the executives of statewide governing, policy, and coordinating boards of postsecondary education and their staffs. Founded in 1954, SHEEO promotes an environment that values higher education and its role in ensuring the equitable education of all Americans, regardless of race/ethnicity, gender, or socioeconomic factors. Together with its members, SHEEO aims to achieve this vision by equipping state higher education executive officers and their staffs with the tools to effectively advance the value of higher education, promoting public policies and academic practices that enable all Americans to achieve success in the 21st century, and serving as an advocate for state higher education leadership. For more information, visit sheeo.org. 

Study finds students experiencing college closures are 50% less likely to earn a credential

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BOULDER, CO – A new report shows college closures have an overwhelmingly negative impact on students, with students 71.3% less likely to reenroll within one month and 50.1% less likely to earn a credential than students who did not experience a closure. 

A Dream Derailed? Investigating the Causal Effects of College Closure on Student Outcomes is the second of three reports seeking to quantify the impacts of college closures on students’ postsecondary enrollment and completion outcomes. From a collaborative research team at the State Higher Education Executive Officers Association (SHEEO) and the National Student Clearinghouse (NSC) Research Center, these reports are also meant to identify ways states can support students who experience a closure through various policy levers. 

In order to explore the causal effects of college closures on student outcomes, SHEEO looked at a combined dataset of enrollment and credential completion records for 143,215 students who experienced a closure at 467 institutions of higher education between July 1, 2004, and June 30, 2020, and 1,295,773 matched control students enrolled in 467 matched institutions who did not experience a closure. By looking at a matched sample of students, SHEEO explored the direction and strength of the associations between closure and student outcomes such as enrollment, persistence, and completion. As outlined in the first report, A Dream Derailed? Investigating the Impacts of College Closures on Student Outcomes, more than 100,000 students experienced their institution closing without adequate notice or a teach-out plan from July 2004 to June 2020. 

“The research from this report shows that when schools close, the impacts are potentially life-altering, with most students choosing not to reenroll right away and half as likely to earn a credential than students who did not experience a closure,” said SHEEO President Rob Anderson. 

Research found that students who experience a closure are less likely to reenroll and are more likely to switch to a shorter-term credential than the one they were pursuing at the time of closure. Students are also less likely to earn any credential post-closure and take longer to complete a credential compared to students who did not experience a closure. 

  • Students who experienced a closure were 71.3% less likely to be enrolled after one month and 63.3% less likely to be enrolled after four months than students who did not experience a closure.
  • Students who experienced a closure were 50.1% less likely to complete a credential than students who did not experience a closure.
  • Students who experienced a closure were 19.9% more likely to complete a shorter-term credential than the credential they were pursuing at the time of closure than students who did not experience a closure.

Unfortunately, these negative impacts are most pronounced for students of color, students enrolled in certificate programs, and students enrolled in the for-profit sector. These students are also the most likely to experience an institutional closure, particularly abrupt closures that occur with little warning or time for students to prepare.  

State agencies of higher education and institutions can play a key role in helping to minimize the negative impacts on students due to college closures. Several policy implications were outlined in the report, including simplifying the transfer process for students of closed schools, offering extra supports like transfer counseling and orientation, and creating policies requiring institutions to submit and implement contingency plans in the event of closure. 

This series of three publications examining the impacts of college closure on student outcomes is supported by Arnold Ventures.

Learn more about our work on college closures at https://sheeo.org/project/college-closures/.

About SHEEO

The State Higher Education Executive Officers Association (SHEEO) serves the executives of statewide governing, policy, and coordinating boards of postsecondary education and their staffs. Founded in 1954, SHEEO promotes an environment that values higher education and its role in ensuring the equitable education of all Americans, regardless of race/ethnicity, gender, or socioeconomic factors. Together with its members, SHEEO aims to achieve this vision by equipping state higher education executive officers and their staffs with the tools to effectively advance the value of higher education, promoting public policies and academic practices that enable all Americans to achieve success in the 21st century, and serving as an advocate for state higher education leadership. For more information, visit sheeo.org. 

Annual Grapevine Compilation Shows Initial 6.6% Increase in State Support for Higher Education

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Data reported by states in the latest Grapevine survey indicate that initially approved state support for higher education in fiscal year (FY) 2023 reached $112.3 billion, a 6.6% increase over 2022.[1] This is the second time that state fiscal support for all higher education has topped $100 billion. This increase reflects a 27.5% increase over the past five years. Tax appropriations, non-tax support, non-appropriated support, and returns from state funded endowments make up total state support. The Grapevine report provides a first, tentative look at state higher education funding in the new fiscal year. An important caveat is that the Grapevine data do not account for inflation.[2]

Although states allocated less federal funding to support higher education than in the previous two years, an additional $1.2 billion in federal stimulus funding brings the total state fiscal support for higher education in FY 2023 to $113.5 billion, a 5.3% increase over 2022.[3]  

Grapevine data are collected annually by the State Higher Education Executive Officers Association (SHEEO) in collaboration with the Center for the Study of Education Policy at Illinois State University. The FY 2023 data summarized online and in these tables represent initial allocations and estimates reported by the states from October 2022 through January 2023 and are subject to change. 

From 2022 to 2023, 14 states reported increases of more than 10% in state support for higher education, excluding federal stimulus funding. The states reporting these large increases are Alaska, Arizona, Georgia, Hawaii, Kentucky, Maryland, Mississippi, Missouri, New Mexico, South Carolina, Tennessee, Utah, Vermont, and Virginia. Five states, and Washington, D.C., had decreases in state support, excluding federal stimulus funding: Connecticut, Illinois,[4] Michigan, New Hampshire, and Texas.

Thirty-eight states saw overall increases in state and federal stimulus funding. Twelve states and Washington, D.C., reported an overall decline in state and federal stimulus funding between 2022 and 2023. The 12 states reporting declines are: Connecticut, Delaware, Georgia, Illinois, Michigan, Minnesota, New Hampshire, North Dakota, Texas, Vermont, West Virginia, and Wisconsin. The decreases are caused by reductions in a combination of both federal stimulus and state support in most of the 12 states. However, Delaware, Georgia, Vermont, West Virginia, and Wisconsin saw increases in state support which were reversed by significant reductions in federal stimulus funding.

The Grapevine tables also include data on how total higher education state support allocations were used across two-year public operating, four-year public operating, state financial aid, research, and other uses for FY 2023. While state allocations across each area are not final and include estimates for several states, initial appropriations to each area were as follows:

  • $24 billion to two-year public operating (22.1% of state support).
  • $56 billion to four-year public operating (49.9%). 
  • $14.8 billion to state financial aid for all students (13.2%). 
  • $12.8 billion to research, agriculture extension, hospital extension and medical schools (11.4%).
  • $3.8 billion to other uses, including agency funding, private institution operations, and non-credit appropriations (3.4%). 

Longer-Term Trends

Longer-term trends in state support for higher education are positive. Excluding federal stimulus funding, state support has increased 16.4% nationally since 2021 and 27.5% since 2018. Note: These data do not account for the impact of inflation, which has risen substantially in recent years.[5]

Only two states, again excluding any federal stimulus funding, had lower state support in 2023 than in 2021 (Connecticut and Wyoming). Likewise, only two states had lower state support in 2023 than in 2018 (Alaska and Wyoming). While multiple-year declines in any state should be of concern, these state counts are relatively low compared to pre-pandemic years.

Federal Stimulus Funding

For the second year in a row, the Grapevine report includes tables on federal stimulus/relief allocations to states that were used for higher education. Funds awarded directly to higher education institutions from the federal government are not included. 

Across FY 2020-2023, states allocated $8.8 billion in federal stimulus support to higher education from the 2020 Coronavirus Aid, Relief, and Economic Security (CARES) Act, the 2021 Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act, and the 2021 American Rescue Plan (ARP). If including funds used for capital projects, that number jumps to $10.9 billion in federal stimulus support over the last four years. The full Grapevine report, including tables summarizing the results of the FY 2023 Grapevine survey and a complete dataset of state support for higher education going back to 1980, can be found on the SHEEO State Higher Education Finance (SHEF) website at https://shef.sheeo.org/grapevine.

[1] FY 2023 marks the seventh year Grapevine has included Washington, D.C., in its survey. Washington, D.C., is excluded from all state counts and U.S. totals. The data reported by the District of Columbia, including federal stimulus funding, reveal a 6.2% decline in the last year and a 19.7% decrease in the last two years, but a five-year increase of 42.5%.

[2] While actual inflation data are not available for FY 2023, forecasts suggest the U.S. will face 3.8% inflation over FY 2022. Source: OECD Economic Outlook: Statistics and Projections, Inflation Forecast Indicator https://data.oecd.org/price/inflation-forecast.htm.

[3] Federal stimulus funding was awarded to states for higher education to stabilize state and local sources of funding, and to provide additional resources during COVID-19. Federal stimulus funding excludes funds allocated to public capital projects and any funds (such as HEERF) allocated directly by the federal government to institutions or students.

[4] In Illinois, FY 2022 includes a one-time payment of $250 million to fully address the unfunded liability of the state’s prepaid tuition program, ensuring stability to the program. If this one-time payment were not included, the one-year change in Illinois’ state support would be a $236.1 million increase, or 4.6%.

[5] From December 2021 to December 2022, the Consumer Price Index increased 6.5%. Source: U.S. Bureau of Labor Statistics Economic News Release, Consumer Price Index Summary https://www.bls.gov/news.release/cpi.nr0.htm.

SHEEO welcomes Alicia Engels as new director of events

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Washington, D.C.—The State Higher Education Executive Officers Association (SHEEO) welcomed Alicia Engels as its new director of events earlier this week. Engels will be a part of SHEEO’s Washington, D.C., office and will provide direction and oversight to help organize and implement SHEEO events, including the Annual Meeting, Higher Education Policy Conference, and Communities of Practice.

Before joining SHEEO, Engels served as the assistant director of Events, Conferences and Support Services at the University of Richmond (UR) in Richmond, Virginia. She developed and managed high profile university events such as commencement, family weekend, and student orientation. She also served as principal contact for all campus space reservations, resource scheduling, and event logistics. Engels was notably responsible for implementing the first large-scale event at UR within COVID protocol. Prior to her time at the university, she served as a recreation coordinator for Henrico County Recreation & Parks.

Engels holds a bachelor’s degree in communication studies from James Madison University. 

ABOUT THE STATE HIGHER EDUCATION EXECUTIVE OFFICERS ASSOCIATION

The State Higher Education Executive Officers Association (SHEEO) is the national association of the chief executives of statewide governing, policy, and coordinating boards of postsecondary education. Founded in 1954, SHEEO serves its members as an advocate for state policy leadership, a liaison between states and the federal government, and a vehicle for learning from and collaborating with peers. SHEEO also serves as a manager of multistate teams and as a source of information and analysis on educational and public policy issues. Together with its members, SHEEO advances public policies and academic practices that enable Americans to attain education beyond high school and achieve success in the 21st-century economy.

Solicitation for Session Proposals for 2023 SHEEO Higher Education Policy Conference

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The State Higher Education Executive Officers Association (SHEEO) is pleased to host the 2023 Higher Education Policy Conference in Denver, CO, August 7-10. 

The annual Policy Conference is the preeminent gathering of leaders from state higher education policy agencies, national higher education policy organizations, institutions, and state and federal governments. SHEEO seeks timely, thought-provoking proposals for sessions aligned with our organizational vision to promote an environment that values higher education and its role in ensuring equitable education for all, regardless of racial/ethnic, gender, or socioeconomic factors. DEADLINE EXTENDED to March 10, 2023.

Learn more about the session proposals and how to submit yours at https://bit.ly/2023SHEEOPolicyRFP.

For information about the upcoming conference, visit https://sheeo.org/event/2023-sheeo-policy-conference/.

New SHEEO Report Details Top Policy Priorities for State Higher Education Leaders Across the Country

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Washington, D.C.—In a survey distributed following the 2022 midterm elections, the State Higher Education Executive Officers Association (SHEEO) asked state higher education leaders about their top policy issues going into 2023. States face a multitude of higher education policy issues each year, with some topics consistently among the top priorities for policymakers while others represent emerging public policy concerns driven by the current higher education landscape. SHEEO’s new report details the top 10 state policy priorities for 2023 according to state higher education leaders. The report also includes additional rising issues—topics consistently making headlines and generating important conversations among the higher education community. 

Economic and workforce development, along with the related issue of the K-12 teacher workforce, tied for the top two state policy priorities of SHEEOs. The COVID-19 pandemic changed the landscape for workforce development, exacerbating many existing workforce shortages. SHEEOs noted significant unmet labor market demands in their states and the need for public higher education to demonstrate its value to stakeholders by meeting state workforce needs. On the teacher workforce, SHEEOs stressed the importance of high-quality K-12 teachers to student success, expressed their concerns over teacher shortages, and cited low pay, a lack of respect for the profession, and political agendas as contributing factors to the teacher shortage.  

Rounding out the top five priorities are (3) state funding for financial aid programs, (4) state operating support for public colleges and universities, and (5) higher education’s value proposition. Other issues include declining enrollment and college affordability, tied for sixth, (8) public perception of higher education, (9) addressing equity gaps, and (10) college completion/student success. Rising issues outlined in the report include a focus on student health and safety and student basic needs, like food, housing, and childcare. 

“While survey results and the top issues are not necessarily surprising, the state budget surpluses provide lawmakers with an opportunity to invest in higher education’s capacity to address workforce needs and grow the economy,” said Tom Harnisch, SHEEO’s vice president for government relations. 

The 2023 legislative sessions present a unique opportunity for states to address many of the top issues outlined in the survey results. While not an exhaustive list, also included in the report are several examples of how states have implemented policies and programs that other states could consider replicating to tackle many of these issues.The full State Priorities for Higher Education in 2023: Survey of SHEEOs report can be found in the report at: https://sheeo.org/policy-issue-survey/.

SHEEO Welcomes Jessica Duren as Strategic Communications Director

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The State Higher Education Executive Officers Association (SHEEO) welcomes Jessica Duren as its new strategic communications director.

Duren will be a part of SHEEO’s Washington, D.C., office and will develop, implement, and maintain a comprehensive and multi-faceted communications strategy for SHEEO and its membership. She will provide oversight and direction for SHEEO’s internal and external communications, including website, social media, print publications, and email marketing.

Jessica Duren Headshot
Jessica Duren

Before joining SHEEO, Duren served as assistant commissioner for communications & outreach for the Missouri Department of Higher Education & Workforce Development. As a member of the senior leadership team, Duren was instrumental in helping to develop the department’s strategic plan in 2021. She set the direction for the department’s marketing efforts to share the importance of all education beyond high school and the impact of education and training for today’s workforce. Duren has served Missourians in various communications roles with the department since 2014.

Prior to her time at the department, she was a copy editor and reporter for the Jefferson City News Tribune and the editor of three weekly papers in Northeast Iowa. Duren holds a bachelor’s degree in print journalism from Missouri State University.

ABOUT THE STATE HIGHER EDUCATION EXECUTIVE OFFICERS ASSOCIATION

The State Higher Education Executive Officers Association (SHEEO) is the national association of the chief executives of statewide governing, policy, and coordinating boards of postsecondary education. Founded in 1954, SHEEO serves its members as an advocate for state policy leadership, a liaison between states and the federal government, and a vehicle for learning from and collaborating with peers. SHEEO also serves as a manager of multistate teams and as a source of information and analysis on educational and public policy issues. Together with its members, SHEEO advances public policies and academic practices that enable Americans to attain education beyond high school and achieve success in the 21st-century economy.

More Than 100,000 Students Experienced An Abrupt Campus Closure Between July 2004 and June 2020

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SHEEO and National Student Clearinghouse Research Center Investigated the Impacts of 467 College Closures on Student Outcomes

BOULDER, CO and HERNDON, VA – (Nov. 15, 2022) – More than 100,000 students out of more than 143,000 or 70% experienced their institution closing without adequate notice or a teach-out plan, known as abrupt closure, from July 2004 to June 2020. Poor outcomes in subsequent enrollment and completion were associated with abrupt closures, according to a new report released today by the State Higher Education Executive Officers Association (SHEEO) and the National Student Clearinghouse Research Center.

Most higher education institutions that closed were for-profit colleges. Out of the 467 closed institutions investigated:

  • 49.9% or 233 were from the private for-profit two-year sector;
  • 28.1% or 131 occurred from private for-profit four-year sector;
  • 17.8% or 83 came from the private nonprofit four-year sector; and
  • 4.3% or 16 were private nonprofit two-year and four were public four-year institutions.

Almost 12,000 campuses closed over the period analyzed, according to the Postsecondary Education Participants System.

The report, A Dream Derailed? Investigating the Impacts of College Closures on Student Outcomes, is the first of a series of a joint research endeavor between the two organizations to quantify the impacts of college closure on students’ subsequent postsecondary enrollment and completion.

“This study shows that any college closure is damaging to student success, leaving too many learners – more than half – without a viable path to fulfilling their educational dreams,“ said Doug Shapiro, Executive Director, National Student Clearinghouse Research Center. “But the extremely poor outcomes for students who experienced abrupt closures are particularly worrisome.”

“This research confirms that college closures have a detrimental impact on the enrollment and completion outcomes of all students and are most pronounced when colleges close abruptly without forewarning or student protections,” said SHEEO President Rob Anderson. “The particularly poor outcomes are especially harmful for minoritized students of color enrolled in the for-profit sector. These results reinforce calls for improving state authorization processes and strengthening the financial monitoring of institutions to prevent, prepare for, and respond to college closures.”

Abrupt closure in the private, for-profit four-year sector had the most adverse impact on reenrollment rates: 42.4% vs. 70.1% for orderly closures. When closure was orderly, reenrollment rates were nearly identical across the private four-year sector. Completion gaps by race/ethnicity were exacerbated among abrupt closures, with larger gaps in attainment than among orderly closures, especially for Hispanic and Black students.

Overall, less than half (47.1%) of students who experienced a closure subsequently reenrolled at a postsecondary institution. Of those who reenrolled, 36.8% earned a postsecondary credential, likely their first-ever undergraduate credential, and an additional 10.4% remained enrolled as of February 2022. The remaining 52.9% left without earning a credential after reenrollment. As a result, students who experienced a closure likely add to the population of students who have some college, but no credential.

Other report specifics include:

  • Students who reenrolled within one to four months were the most likely to earn a credential (47.6%). The odds of earning a credential doubled if students reenrolled within one year of closure, while those who stopped out for more than one year were the least likely (18.7%).
  • Hispanic and Black students with abrupt closure experiences were far less likely to earn a credential post-closure compared to their counterparts with orderly closure experiences (26.4% vs. 43.0% for Hispanic; 25.3% vs. 39.4% for Black).
  • Students who experienced closure were more likely to be women (54.6%), white (25.0%), and 30 years or older at the time of closure (39.0%).
  • Reenrollment rates were highest among women (49.0%), white students (62.5%), and traditional college age students (54.0% for 18-20; 46.6% for 21-24).
  • Students who experienced closure at private nonprofit and for-profit four-year institutions were most likely to reenroll in the same sector. Alternatively, students who experienced closure at a private for-profit two-year institution likely reenrolled at a community college.

This series of three publications examining the impacts of college closure on student outcomes is supported by Arnold Ventures.

About SHEEO

The State Higher Education Executive Officers Association (SHEEO) serves the executives of statewide governing, policy, and coordinating boards of postsecondary education and their staffs. Founded in 1954, SHEEO promotes an environment that values higher education and its role in ensuring the equitable education of all Americans, regardless of race/ethnicity, gender, or socioeconomic factors. Together with its members, SHEEO aims to achieve this vision by equipping state higher education executive officers and their staffs with the tools to effectively advance the value of higher education, promoting public policies and academic practices that enable all Americans to achieve success in the 21st century, and serving as an advocate for state higher education leadership. For more information, visit www.sheeo.org.

About the National Student Clearinghouse® Research Center™

The National Student Clearinghouse Research Center is the research arm of the National Student Clearinghouse. The Research Center collaborates with higher education institutions, states, school districts, high schools, and educational organizations as part of a national effort to better inform education leaders and policymakers. Through accurate longitudinal data outcomes reporting, the Research Center enables better educational policy decisions leading to improved student outcomes. The Research Center analyzes the data from more than 3,600 Title IV eligible degree-granting postsecondary institutions, which represent 97% of the nation’s postsecondary enrollment as of fall 2020. Clearinghouse data track enrollments nationally and are not limited by institutional and state boundaries. To learn more, visit https://nscresearchcenter.org.

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New SHEEO Report: State Approaches to Base Funding for Public Colleges and Universities

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In collaboration with NCHEMS, SHEEO released a report describing and classifying the approach each state takes to funding base operations at public colleges and universities. With sector-level data, state examples, and estimations of the proportion of state funding allocated through each approach, this report seeks to fill in gaps in our collective understanding of how states funding higher education. It is our hope that the data shared in this report will lead to additional research, consideration, and evaluation of base plus, institutional requests, input-driven formula funding, and special purpose funding across the states.

Read the Report