Transfer Enrollments Continue to Rise

The number of college students transferring to a new institution increased by 4.4 percent this year, according to a new report from the National Student Clearinghouse Research Center.

The boost builds on last year’s 5.3 percent transfer increase and marks a total 8 percent increase since 2020, when the pandemic kicked off a precipitous 14 percent decline in transfer enrollment. Meanwhile, nontransfer postsecondary enrollment is still 3.5 percent behind 2020 levels. There were nearly 1.2 million transferring students in 2024, making up 13 percent of nonfreshman undergraduates, slightly more than in 2020.

Clearinghouse research director Doug Shapiro said that’s “good news.”

“The growth in transfers this fall is a further indication that students are adjusting their postsecondary goals in response to changing education and labor market conditions,” he said in a press call Tuesday, adding that it means students are finding institutions that “better meet their needs.”

Transfer growth was strongest at community colleges, which saw a 5.8 percent year-over-year increase and enrolled 13.5 percent more transfer students this fall than in 2020, and at primarily online colleges, where transfers rose by 6.6 percent, adding up to a 39 percent increase since 2020. Public and private four-year colleges saw a 3.5 percent and 1.4 percent rise in transfer enrollment from 2023 to 2024, respectively.

The number of students transferring from four-year institutions to community colleges grew by 6.3 percent, more than other pathways. So-called lateral transfers, from one two-year institution to another, rose by 5.6 percent, and transfers between four-year institutions increased by 4.6 percent. Upward transfers, from two-year to four-year institutions, only grew slightly, by 2.9 percent, and remain slightly below pre-pandemic levels. As usual, the vast majority of transfer students moved to an institution in the same state, about 72 percent.

Returning transfer students, those who dropped out of an institution and transferred their credits to another to finish their degree, made up the majority of the transfer pool and had slightly higher growth at 4.9 percent. The number of continuing transfer students—those who transfer without taking any time off—increased by 3.9 percent.

Transfer rates for Black and Hispanic students increased by 8.3 percent and 4.4 percent, respectively, since 2023, and both are well above 2020 levels. Fewer white students transferred this fall, a decline of 1.5 percent; white transfer rates are down 6.1 percent from 2020. The number of Asian student transfers rose by 1.8 percent.

When asked which of these changes could be responsible for the transfer enrollment increase, Shapiro said “all of the above” were probably factors. But the primary drivers, he said, were likely the overall increase in postsecondary enrollment since the pandemic and the outsize share of that recovery at community colleges.

An Investment Opportunity

As changing demographics and a move toward shorter-term degrees reshape the postsecondary landscape, transfer pathways may be one area of reliable future enrollment growth for both two- and four-year institutions.

John Fink, senior research associate at the Community College Research Center at Columbia University’s Teachers College, said the continued transfer growth should encourage four-year institutions to invest more heavily in their transfer enrollment initiatives. Last year his center found that more than half of community college students who intend to transfer never do, and Fink said the latest enrollment trends show there’s a lot of potential left on the table.

“This is a signal for four-year colleges struggling with enrollment that there is a lot of room for growth from the transfer pipelines,” he said. “Look at how fast transfers are growing. Imagine how much higher that could be if there’s more intentional investment in those pathways?”

A number of recent changes to the admissions landscape may have had a hand in driving the upward transfer trends. For one, postsecondary enrollments have risen steadily for the past few years, and much of that growth has been at community colleges. This past year, community college alternative credential enrollment rose by 10 percent and enrollment in associate degree programs rose by 6.3 percent, while bachelor’s enrollment increased by 2.9 percent, according to a clearinghouse report from January.

Shapiro said last year’s delayed financial aid cycle may have also played a role in boosting transfer rates—especially between four- and two-year institutions, the pathway with the most growth—because more students may have been uncertain about their ability to afford college and transferred to a cheaper option.

After the Supreme Court banned affirmative action, some selective colleges have invested in their community college transfer pipelines, since two-year institutions tend to serve a much more racially diverse student population. This fall, transfers to highly selective institutions grew by 5.6 percent, and 5.7 percent at competitive institutions; at less selective colleges, they only rose by 1.5 percent.

“Four-year institutions, especially broad-access ones, have long relied on community college transfer students,” Fink said. “But there’s been increasing reasons why universities, including more selective institutions, should focus on and invest in their community college outreach and partnerships.”