Non-degree credentials have skyrocketed in popularity over the last decade despite students largely paying out of pocket, according to a new report from the Pew Charitable Trusts.
Attainment of certifications, licensing, boot camps, micro-credentials and apprenticeships tripled from 2009 to 2021. The latest findings from Pew now suggest that up to one-third of U.S. adults today have earned some form of a non-degree credential.
While this trend signals growing demand for short-term, flexible learning opportunities, it remains unclear how some students can afford tuition.
The majority of such programs are too short to qualify for federal aid, and less than a quarter of students accessed financial support for their credentials. More than half of all respondents paid tuition out of pocket.
As the hourly cost of most non-degree credentials remains well-above the U.S. minimum wage, students forced to pay with credit cards may be burdened with high interest rates and ongoing debt, the report asserted.
Milestone for non-degree credentials
Individual states have taken the lead in providing financial support for non-degree credentials. Last year, 32 states committed $5.6 billion to short-term credential initiatives, surpassing 2023 spending by nearly $1.8 billion.
“When there is state-level funding, there’s going to be a level of accountability that requires data collection and reporting,” says Mark D’Amico, a professor of higher education at the University of North Carolina at Charlotte.
Workforce Pell, established by the Trump administration earlier this year, may help higher education leaders better evaluate—and regulate—non-degree credentials, D’Amico says.
“Workforce Pell is going to require states to not only identify which programs meet its guardrails, but it will expand what data states collect.”
Accreditors are also attempting to regulate the quality of non-degree credentials amid the rapidly growing market.
The Higher Education Learning Commission, which accredits institutions across 19 states, recently unveiled an endorsement process that evaluates program quality. To be endorsed, providers must be financially stable, offer programs aligned with workforce needs and protect students’ financial investments.
“This is a milestone that will bring greater confidence in our nation’s burgeoning credential marketplace,” said Barbara Gellman-Danley, president of the Higher Learning Commission.
More on non-degree credentials: How microcredentials are fueling new workforce innovation
