In October, the Urban Institute released a research report that examines the debt outcomes of postsecondary CTE programs, including associate degree and certificate programs. Researchers used a variety of sources such as the College Scorecard to explore debt, earnings and debt burden levels (debt as a share of earnings) of learners two years after graduation for six fields of study: health sciences, business and marketing, computer and information sciences, repair services, protective services and culinary services.
The data used in this analysis does not capture students who graduate without debt because they pay for their education out of pocket or have federal Pell Grants – a sizeable proportion of students in postsecondary CTE programs. For instance, about 42% of community college students in 2017-18 received Pell Grants.
Among students in postsecondary CTE programs who graduate with debt, the researchers found the following:
- The median debt of postsecondary CTE programs is $16,077. However, this figure varies significantly by field of study: students in computer and information sciences graduated with the highest median debt while students in repair services graduated with the lowest median debt, in part because programs in repair fields tend to be shorter in length.
- Two years after graduating, median annual earnings for graduates are about twice graduates’ median debt, $32,234, with the highest-earning programs being health sciences and computer and information sciences and the lowest earning being personal and culinary services.
- Together, a student’s chosen field of study and credential level contribute the most to CTE program outcomes, particularly when it comes to earnings. Institutional characteristics also play a significant role, particularly for debt and debt burden outcomes.
- While, in the aggregate, student demographics and labor market characteristics are not significant drivers of debt and earnings outcomes, significantly lower earnings for graduates of programs with large shares of women and people of color make it more difficult for these individuals to pay off debt.
The report concludes with policy, program and research strategies that can help students maximize the value of their postsecondary CTE credentials. Strategies mentioned include providing strong career guidance about institutions, fields of study and credential types; assisting adult learners and women with debt relief; removing barriers to high-value programs; examining debt and earnings outcomes beyond two years after graduation; and capturing outcomes for students who do not complete a CTE program of study.
To help more people access CTE programs without incurring debt, ACTE supports expanding Pell Grant access to short-term programs. Expanding Pell grants to support the costs of high-quality, short-term education programs will help more Americans earn credentials and enter the workforce – or begin new careers – in high-wage, high-demand industries like manufacturing, health care and transportation.
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