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Pandemic Sinks College Enrollment Again, but Fall Looks Brighter
Community colleges saw enrollment drop most, but analysts expect a recovery for all types of institutions this fall.
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Colin Beresford is a former NerdWallet student loans writer. He previously was an automotive business writer for Car and Driver magazine and is a graduate of the University of Michigan.
Des Toups Lead Assigning Editor | Student loans, repaying college debt, paying for college
Des Toups was a lead assigning editor who supported the student loans and auto loans teams. He had decades of experience in personal finance journalism, exploring everything from car insurance to bankruptcy to couponing to side hustles.
NerdWallet ratingNerdWallet's ratings are determined by our editorial team. The scoring formula for student loan products takes into account more than 50 data points across multiple categories, including repayment options, customer service, lender transparency, loan eligibility and underwriting criteria.
Fixed APR
3.59-17.99%
College Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply. (1)All rates include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. Variable rates may increase after consummation. (2)As certified by your school and less any other financial aid you might receive. Minimum $1,000. (3)This informational repayment example uses typical loan terms for a freshman borrower who selects the Flat Repayment Option with an 8-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7.78% fixed Annual Percentage Rate (“APR”): 54 monthly payments of $25 while in school, followed by 96 monthly payments of $176.21 while in the repayment period, for a total amount of payments of $18,266.38. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary. Information advertised valid as of 11/1/2024. Variable interest rates may increase after consummation. Approved interest rate will depend on creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of the Flat Repayment Option with the shortest available loan term.
Variable APR
5.34-17.99%
College Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply. (1)All rates include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. Variable rates may increase after consummation. (2)As certified by your school and less any other financial aid you might receive. Minimum $1,000. (3)This informational repayment example uses typical loan terms for a freshman borrower who selects the Flat Repayment Option with an 8-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7.78% fixed Annual Percentage Rate (“APR”): 54 monthly payments of $25 while in school, followed by 96 monthly payments of $176.21 while in the repayment period, for a total amount of payments of $18,266.38. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary. Information advertised valid as of 11/1/2024. Variable interest rates may increase after consummation. Approved interest rate will depend on creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of the Flat Repayment Option with the shortest available loan term.
NerdWallet ratingNerdWallet's ratings are determined by our editorial team. The scoring formula for student loan products takes into account more than 50 data points across multiple categories, including repayment options, customer service, lender transparency, loan eligibility and underwriting criteria.
Fixed APR
3.49-15.49%
Lowest rates shown include the auto debit. Advertised APRs for undergraduate students assume a $10,000 loan to a student who attends school for 4 years and has no prior Sallie Mae-serviced loans. Interest rates for variable rate loans may increase or decrease over the life of the loan based on changes to the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent. Advertised variable rates are the starting range of rates and may vary outside of that range over the life of the loan. Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. To receive a 0.25 percentage point interest rate discount, the borrower or cosigner must enroll in auto debit through Sallie Mae. The discount applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment. Advertised APRs are valid as of 10/25/2024. Loan amounts: For applications submitted directly to Sallie Mae, loan amount cannot exceed the cost of attendance less financial aid received, as certified by the school. Applications submitted to Sallie Mae through a partner website will be subject to a lower maximum loan request amount. Miscellaneous personal expenses (such as a laptop) may be included in the cost of attendance for students enrolled at least half-time. Examples of typical costs for a $10,000 Smart Option Student Loan with the most common fixed rate, fixed repayment option, 6-month separation period, and two disbursements: For a borrower with no prior loans and a 4-year in-school period, it works out to a 10.28% fixed APR, 51 payments of $25.00, 119 payments of $182.67 and one payment of $121.71, for a Total Loan Cost of $23,134.44. For a borrower with $20,000 in prior loans and a 2-year in-school period, it works out to a 10.78% fixed APR, 27 payments of $25.00, 179 payments of $132.53 and one payment of $40.35 for a total loan cost of $24,438.22. Loans that are subject to a $50 minimum principal and interest payment amount may receive a loan term that is less than 10 years. A variable APR may increase over the life of the loan. A fixed APR will not.
Variable APR
5.04-15.21%
Lowest rates shown include the auto debit. Advertised APRs for undergraduate students assume a $10,000 loan to a student who attends school for 4 years and has no prior Sallie Mae-serviced loans. Interest rates for variable rate loans may increase or decrease over the life of the loan based on changes to the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent. Advertised variable rates are the starting range of rates and may vary outside of that range over the life of the loan. Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. To receive a 0.25 percentage point interest rate discount, the borrower or cosigner must enroll in auto debit through Sallie Mae. The discount applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment. Advertised APRs are valid as of 10/25/2024. Loan amounts: For applications submitted directly to Sallie Mae, loan amount cannot exceed the cost of attendance less financial aid received, as certified by the school. Applications submitted to Sallie Mae through a partner website will be subject to a lower maximum loan request amount. Miscellaneous personal expenses (such as a laptop) may be included in the cost of attendance for students enrolled at least half-time. Examples of typical costs for a $10,000 Smart Option Student Loan with the most common fixed rate, fixed repayment option, 6-month separation period, and two disbursements: For a borrower with no prior loans and a 4-year in-school period, it works out to a 10.28% fixed APR, 51 payments of $25.00, 119 payments of $182.67 and one payment of $121.71, for a Total Loan Cost of $23,134.44. For a borrower with $20,000 in prior loans and a 2-year in-school period, it works out to a 10.78% fixed APR, 27 payments of $25.00, 179 payments of $132.53 and one payment of $40.35 for a total loan cost of $24,438.22. Loans that are subject to a $50 minimum principal and interest payment amount may receive a loan term that is less than 10 years. A variable APR may increase over the life of the loan. A fixed APR will not.
Credible lets you check with multiple student loan lenders to get rates with no impact to your credit score. Visit their website to take the next steps.
College enrollment has fallen for the second semester in a row compared with year-earlier periods. And the drop through the spring of this year was worse than it was in fall 2020.
For the spring semester, overall enrollment declined 3.5% from the previous spring, according to estimates released by the National Student Clearinghouse Research Center on June 10. Last fall, enrollment fell 2.6% year over year.
The estimates weren’t surprising to Bill DeBaun, director of data and evaluation at the National College Attainment Network, but they were alarming. “To see continued enrollment decline again into the spring has to give the entire education sector and everyone associated with it a lot of pause,” DeBaun says.
Analysts say that many of the concerns and roadblocks that influenced students’ decision whether to enroll last fall were still present for the spring 2021 term. They named several factors that contributed to the continued decline:
Instruction was still largely online.
Economic uncertainties were still present.
Vaccines didn’t become widely available until after the semester began.
Community colleges took brunt of the decline
Enrollment at community colleges fell 9.5% in the spring as compared with the year-ago period — and that was after a 10.1% decrease year over year in fall 2020.
“This is a big drop,” says Mikyung Ryu, director of research publications at the National Student Clearinghouse Research Center. “This is the largest one-year enrollment decline for community colleges ... in a decade. It is a huge decline, and the magnitude of declines is so big, I think it will take community colleges years to recover from these losses, if it is possible at all.”
At the College of DuPage, the largest community college in Illinois, enrollment fell 9.4% in fall 2020 compared with the year-ago period. Many factors led to the decrease, says DuPage President Brian Caputo, including a declining state population and challenges presented by the pandemic.
For some of the students at DuPage, the pandemic forced them to work and support their families rather than attend college, Caputo says. “It was a pretty tough situation for some of our students, and I think that [it was] for community college students across the country.”
DuPage expects a further decrease of 6.5% this fall as compared to the year-ago period. The school expects to have at least some in-person instruction in half of its classes, but returning to the pre-pandemic level of 80% is a challenge for a commuter school like DuPage, Caputo says.
College enrollment in fall 2021
Much of what has kept students away, including vaccine access and a lack of in-person instruction, will change this fall.
Overall, analysts are expecting an increase in college enrollment for fall 2021. Applications are up from last fall, and those increases are most pronounced among international students, Ryu says.
But not all of the signs are encouraging: The number of students who have completed the Free Application for Federal Student Aid, known as the FAFSA — required to qualify for Pell Grants, federal student loans and other forms of financial aid — is 5.3% below last year’s level. And among high-minority high schools, 8.7% fewer students have completed applications.
“Lack of resources, health implications of the pandemic itself, child care issues” are some of the challenges still facing students, Ryu says. “We are not completely out of the woods in that respect.”
It’s not too late to go to college this fall
Fall 2021 is close, but there is still time to enroll in college for the coming semester.
If you’re considering enrolling for the fall semester or have already enrolled, fill out the FAFSA to be considered for grants, scholarships or work-study aid that can help pay for college. The FAFSA deadline for the 2021-22 school year is June 30, 2022, but it’s important to apply as early as possible because many colleges award money on a first-come, first-served basis.
Community colleges are good options for students considering picking a college to attend this fall as they are typically cheaper and offer more flexible application deadlines than four-year schools do. And for those who intend to get a four-year degree, there are community colleges that work with students to make sure all credits transfer and that no extra courses are taken.
Going to college pays off in the long run. The median weekly earnings of someone with a high school diploma are $781, while weekly earnings increase to $938 for someone with an associate degree and to $1,305 for someone with a bachelor’s degree, according to a 2020 analysis from the U.S. Bureau of Labor Statistics.
“The cost of lost opportunity” will affect those who didn’t complete or earn some sort of credential, Ryu says. “Their potential for earning power and opportunities to move up in social mobility will be actually put on pause. As time goes on, I think it will become more difficult for them to come back.”