More students are choosing community college and short-term credentials over four-year degrees as costs rise and job prospects soften. New federal student loan caps and expanded Pell eligibility starting in mid-2026 could speed up the "un-college" shift.

Scammers using stolen identities pose as "ghost students," enroll online at community colleges, and collect Pell grants and loans before disappearing. Investigators say they have 200+ open cases and have tied more than $350 million in fraud to the schemes.

Undergraduate certificate and associate degree enrollments each grew about 2% in fall 2025, while bachelor's programs rose by less than 1%, according to the report. Community colleges now enroll 752,000 certificate students, up 28% from four years ago.