Retention & Graduation Rates

What is this? Retention rate shows what percentage of students that started pursuing their undergraduate degree with last year's entering class (freshmen) returned and re-enrolled for their second year (sophomore). If freshmen aren't coming back for sophomore year, it could indicate something. For example, COVID impacted retention rates at several schools in the 2020-2021 school year as students took leaves of absence or didn't re-enroll.

Why this matters: College is marketed as a 4-year product, but rankings and government tracking use 6-year graduation rates. Every extra year means additional tuition, living costs, and a year of lost earnings. A school where 85% graduate in 4 years vs. 95% in 6 years still has 15% of students paying for a 5th year. Note, some schools have dual degree programs that deliver both a masters and a bachelors simultaneously, which could delay graduation from 4 to 5 or 6 years.

What are these groups? Federal reporting for graduation rates breaks students into three income groups: Pell Grant recipients, Subsidized Loan recipients who didn't receive Pell, and No Loan/No Pell students. The mix tells you a lot about who actually attends — a school with 25% Pell students looks very different from one with 10%. If you notice a school has a very low number of subsidized loan recipients it may be because the school has a "no loan" policy as part of their financial aid packages. You cannot assume that students in the no loan and no Pell category are not receiving financial aid, all that category means is that they aren't receiving a Pell grant nor are they taking a subsidized loan. They could still receive institutional grants or scholarships, merit aid, or take unsubsidized loans, or they could be full pay students with no loans or aid.

Why this view? Government agencies ask for this breakout to understand if students receiving Title IV aid are graduating at similar rates as other students. Gaps could suggest a lack of support for certain groups once enrolled. Extra years beyond 4 years mean extra costs for students across all groups. Note that the 'No Subsidized Loan or Pell Grant' group is mixed — it includes full-pay students, merit scholarship recipients, and those with unsubsidized loans. Higher graduation rates (or lower rates during COVID) in this group could reflect the advantages of wealth, but the mix makes it hard to draw definitive conclusions. * indicates a cohort with fewer than 20 students — rates for very small groups can swing dramatically and may not be meaningful.