Much of the community college enrollment increase can be attributed to an uptick in dual-enrollment—high school students attending community college classes.

Hard economic times have traditionally been good for community colleges, as laid-off workers return to school to learn new skills. But the Covid-19 pandemic that began in early 2020 and the sharp (if brief) recession it brought on were a whole different story. Community colleges, which serve about a third of all undergraduates in the United States, were hit harder by enrollment declines than any other type of higher education institution.

Now the steep enrollment declines are over and according to a new report from S&P Global Ratings, despite the end of extra Covid-era federal aid, the finances of the 199 community colleges (in 22 states) it rates have stabilized. The report credits increased state support and local tax revenues, as well as increased tuition receipts and prudent management for the stability. (Nearly two-thirds of the rated schools are in California, Texas and Illinois.)

For community colleges nationwide, the enrollment swing has been a dramatic one. According to the National Student Clearinghouse, enrollment at two-year public colleges (as measured each March), fell 9.9% in 2021 and 8.6% in 2022 before creeping back up 1.5% in 2023 and rising a healthy 4.7% in 2024. That’s separate from the demographic challenges some of the schools........

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