While the Department of Education is working to ensure that this year’s FAFSA runs smoothly, we examine the impacts that last year’s challenges had on fall enrollments in this week’s issue. (Spoiler alert: institutions struggled to fill their first-year classes.) After that, we turn our attention to two intertwined topics – skills-based hiring by employers and experiential learning programs, which help students connect classroom learning with work experiences.   

After reading today’s issue, use the comments section to let us know how your institution’s enrollment was impacted by the FAFSA challenges. 

Enrollments Upended by FAFSA 

From FAFSA Fiasco Changed Composition of First-Year Classes at Most Private Colleges | The Chronicle of Higher Education  

A recent survey from the National Association of Independent Colleges and Universities (NAICU) found wide-ranging impacts from the FAFSA fiasco for private, non-profit colleges.   

Our Thoughts 

We suspected that the challenges from the botched FAFSA rollout last year would have ripple effects on institutional enrollment and finances. This survey from NAICU confirms those suspicions, detailing some of the significant impacts reported by private, non-profit institutions. The survey revealed that nearly half of institutions struggled to fill their freshman classes due to FAFSA-related disruptions. There were notable drops in both the diversity of incoming students, especially first-generation students, and the number of students receiving financial aid. This situation is especially concerning for institutions focused on equity and access, leaving them wondering how best to support students during this period of FAFSA instability.  

Additionally, many of these institutions had to make quick decisions with incomplete financial data, causing them to increase discount rates or allocate more institutional aid than planned to close gaps in student financial aid. This reactive approach is unsustainable for institutions, many of whom are already facing tight budgets and a competitive enrollment landscape. I can only hope that the Department of Education is truly correcting issues with the FAFSA and is better prepared this year.  

Employers More Interested in Skills than Degrees 

From What Skills-Based Hiring Means for Higher Ed | Inside Higher Ed  

Employers say they are interested in hiring for skills over degrees for entry-level roles, and institutions should help students better articulate their skills.   

Our Thoughts 

Skills-based hiring has been a hot topic of discussion for most of this year, likely due in part to decreasing confidence in higher education and employer concerns about recent graduates’ career readiness. However, way back at the turn of the millennium when I started my first job at a university, employers were also complaining about career readiness. Therefore, it’s possible that skills-based hiring is just the latest trend attempting to address this concern. In fact, a recent study from The Burning Glass Institute and Harvard Business School found that while employers have dropped degree requirements, they have not proportionately increased their skills-based hiring.   

Even so, I think institutions still have work to do to help graduates translate what they’ve learned in the classroom into employer identified skills. While I recognize the efforts of career services offices in this area (which we discussed in Episode 2 of our podcast this summer), I also believe institutions need a more intentional approach to ensure graduates are equipped to articulate their skills effectively. As more students pursue higher education with a focus on career outcomes, institutions must prepare and respond accordingly.   

Work-based Learning 

From Some colleges have an answer for students questioning the value of higher ed: work-based learning | The Hechinger Report  

Work-based learning programs such as co-ops may be one way for institutions to address concerns about cost and value.  

Our Thoughts  

While the article focuses heavily on Drexel University’s co-op program and the students who participate in it, it still provides a good introduction to the evolving landscape of experiential learning. Co-op programs can enhance a student’s career readiness by bridging the gap between academic study and real-world experiences. With student and parent concerns over return on investment at an all-time high, programs that provide relevant work experience, networking opportunities, and hands-on skills can be a compelling factor in college selection and student retention.  

While work-based learning is not new, Drexel’s program is a reminder that institutions must continually adapt to changing student expectations and workforce shifts. Developing partnerships with industry and expanding career counseling services are ways for institutions to demonstrate they are addressing these changing expectations and concerns about value. While these programs are not without increased operational overhead, it is important for institutions to consider how such initiatives can benefit them and address current challenges in enrollment and student satisfaction.