The Unseen Population: Re-Engaging the “Some College, No Credential” Student
The higher education landscape is constantly shifting, and while much attention is paid to enrollment numbers and graduation rates, there’s a growing population that demands our focus: the more than 40 million Americans with some college and no credential.
These individuals represent a market for re-enrollment, but also a significant societal challenge, often carrying student debt without the career-boosting benefits of a degree. As leaders in higher education, it’s our responsibility to understand this population and find proactive solutions to help them and future students succeed.
The latest “Some College, No Credential” (SCNC) report from the National Student Clearinghouse reveals that this population continues to grow, with 2.1 million new stopouts between January 2022 and July 2023. While re-enrollment has increased, it hasn’t kept pace with the number of students leaving without a credential. This issue is particularly pronounced at community colleges, which serve as both the largest source of stopouts and the primary destination for returning students. This cycle of enrollment, stopping out, and re-enrollment highlights a fundamental problem: students are facing barriers that prevent them from completing their degrees.
According to the Lumina/Gallup 2025 State of Higher Education Report:
Nearly 1 in 3 currently enrolled students have considered stopping out of their degree or credential program within the last six months.
Among those considering stopping out, nearly half mention emotional stress (49%), and more than 4 in 10 (41%) mention health as the reason they considered it.
Among adults unenrolled in a certificate, certification, associate, or bachelor’s degree program, 37% of adults cited emotional stress as a reason they are not currently enrolled. 33% of them cited personal mental health reasons as a factor they are not being currently enrolled.
About one in three enrolled adults find it difficult to remain enrolled, or have considered stopping out, largely due to mental health and cost concerns.
When unexpected serious events occur, the financial burden that students and families face is often compounded. Not only do students lose a semester of progress, but they also risk forfeiting their tuition and fees, leaving them with outstanding debt and nothing to show for it. This worst-case scenario is a major deterrent for potential re-enrollment and a key driver of the student debt crisis. Those who leave college without a degree are nearly four times more likely to default on their student loans (7.8 percent) compared to graduates (2.1 percent), according to a Beginning Postsecondary Students Longitudinal Study.
This is where a proactive solution comes in. By offering a tuition insurance program, colleges and universities can provide an important resource for students and families. GradGuard Tuition Insurance offers plans that can provide up to 100% reimbursement of a covered student’s tuition, housing, and fees if they are forced to withdraw from school due to a covered reason. Tuition insurance can mitigate financial risk for both students and schools, promoting confidence that an unexpected setback for a covered illness, injury, mental health condition, or other covered reason doesn’t lead to a permanent stopout with a mountain of debt.
By partnering with GradGuard, institutions can:
Protect Student Investment: Strengthen your commitment to student well-being by providing an active choice option for them to protect their financial investment in their education.
Enhance Retention: Reduce the financial barrier for students facing unforeseen challenges, making it easier for them to return and complete their degrees.
Save Institutional Dollars: Minimize the financial impact of student withdrawals on your institution’s budget and resources by reducing or eliminating existing appeals processes.
