College Dropout Rates: 2025 Statistics by Race, Gender & Income

Co-Founder and Chief Data Scientist

Completing a college degree is often regarded as a crucial step in securing a successful career. In fact, recent statistics present a strong correlation between higher education and job security.

Despite this data, college dropout statistics still remain a concern in the United States education sector. According to the Education Data Initiative, 23.3% of undergraduate students leave universities and colleges every year.

Research finds that dropouts often encounter more economic challenges due to a lack of college credentials, connections, and career-related experiences. To help shed light on this issue, this guide outlines the current college dropout rates, the reasons why students drop out, as well as its impact on students who choose to do so.

College Dropout Effects
College Dropout General Statistics
Addressing the Affordability Barrier to College Retention
College Dropout Rates by Demographics
How Do Academic Support Services Impact Student Success?
College Retention and Graduation Rates by State
Why do students drop out of college?
What are the current trends in reducing college dropout rates?
Can alternative education pathways support career success after dropping out of college?
Can Accelerated Degree Programs Bridge the Gap for Non-Traditional Students?
Can Accelerated Associates Degrees Shorten the Path to Workforce Entry?
Can online education offer an affordable and flexible pathway to career success?
Can a one year online master’s program pave the way to career transformation?
FAQs

College Dropout Effects

Dropping out of college may have been the right path for some of the most well-known entrepreneurs today, from Microsoft’s Bill Gates to Facebook’s Mark Zuckerberg. However, being a successful dropout takes quite a lot of skill, vision, and luck.

With these in mind, college dropout effects are bound to be reflected mostly as financial difficulties in the coming years, with unemployment being the issue of most concern.

On average, these students are expected to earn 35% less than college graduates. The difference may be associated with the careers available to college graduates. Psychology students who wonder what to do with a psychology degree, for instance, can qualify for positions in higher-paying fields, such as healthcare and education.

Furthermore, a 2024 study from the United States Census Bureau finds that in terms of educational attainment, students who failed to earn a high school diploma have a 25.1% chance of living in poverty, students who earned only a high school diploma have a 13.1% chance, and students who earned at least a bachelor's only have a 4% chance. It is not a coincidence, too, that college dropouts have been found to be less financially knowledgeable.

Xiao, et al. (2020) found out the “differences in specific financial knowledge items among college students, graduates, and dropouts… [concluding that] college graduates are more likely to perform several specific desirable financial behaviors than college students and dropouts." Published in The Journal of Consumer Affairs, the study findings suggest that “Financial educators should emphasize action they’re taking when they provide financial education for student loan holders who are college students and dropouts."

In a nutshell, failing to complete a college degree would likely result in lower income and scarce opportunities, given the active and competitive pool of graduate applicants.

educational attainment effects on poverty

College Dropout General Statistics

College Dropout Rates in the United States

While high school dropout rates are decreasing, the United States experiences a daunting 32.9% college dropout rate every year. With only 62.3% of students graduating after four years without delay, American universities tend to pale at the scale of this recurring issue, as reported by Yahoo Finance in 2023.

Moreover, 39% of first-time students seeking bachelor's degrees fail to earn the degree in eight years or less, based on figures from the Education Data Initiative. There is also the fact that one in four students is at risk of leaving school without completing their degree.

The National Center for Education Statistics (NCES) reported in 2024 that due to such conditions, the Organisation for Economic Co-operation and Development (OECD) ranked the U.S. 14th (out of 36 countries) in graduation rates.

Graduation Rates

College graduation rates show that 49.1% of college graduates earn bachelor's degrees and 24.5% earn associate degrees. Among the bachelor's degree earners, 22.3% took longer than four years to earn their degrees.

In this case, American students tend to either delay their studies or drop out completely—with the latter option being more appealing to older enrollees.

Below are additional statistics on the percentage of college students who drop out.

College freshmen make up 23.3% of the total dropout rate.
Americans who have some college education but failed to earn a credential, otherwise categorized as “Some College, No Credential” or SCNC, make up around 12.6% of the US population.
At four-year schools, the dropout rate for first-time first-year students is 19.0%.
Among four-year institutions, the type with the highest dropout rate is the private for-profit school at a rate of 38%.
Around 2-3% of SCNCs enroll once again in college to earn a degree.

The chart below shows the highest educational attainment of young adults in the United States.

Economic Impact

How many people drop out of college because of financial issues? Reports find that students with higher student loans tend to drop out more than those with less or none, likely in the hopes of reducing their expenses.

However, with student loan debt piling up to $1.77 trillion in 2024, dropout rates consequently impact both the student and the economy, as the lack of a college degree would limit one’s financial recovery.

Sallie Mae published in 2024 that 30% of students consider dropping out due to financial challenges.
Furthermore, only 30% of students at risk of leaving are prepared for college costs, and only 35% are confident that their families can shoulder the costs.
A 2024 report on trends in college pricing from the College Board reveals that the average budget for a four-year private nonprofit institution is $62,990, while four-year public institutions often charge in-state students around $29,910 as of academic year (AY) 2024-2025.
The average balance for federal student loan debt is about $38,375, while the full balance, inclusive of private loans, can reach around $41,618.

College Dropout Rates by Country

There are varying trends in college dropout rates in different countries. Statistics from NCES show that 70% of individuals aged between 25-34 in the Republic of Korea graduated with a postsecondary degree, making it the top country in this category.

Meanwhile, the U.S. had 51% and ranked 14th—sharing this same measure with Spain, Switzerland, and Belgium.

Number of degree holders U.S. international ranking

Addressing the Affordability Barrier to College Retention

One of the most significant challenges contributing to college dropout rates is the rising cost of higher education. For students who struggle with tuition fees, accommodation, and additional expenses such as textbooks and transportation, the financial pressure can lead to difficult decisions about whether to continue their education. Combatting this issue requires increasing access to cost-effective educational opportunities, such as online programs that offer flexibility and fewer expenses.

A notable growing trend is the rise of programs designed to provide quality education at a more accessible price point. For instance, pursuing an affordable bachelor degree online allows students to manage both their education and work commitments. These programs not only reduce the overall cost of attendance but also eliminate geographic barriers, enabling learners from low-income backgrounds to complete their degrees.

Additionally, institutions can implement robust financial aid packages and personalized financial counseling to support students in need. By actively addressing the affordability barrier and promoting scalable solutions like online learning, schools can significantly improve retention rates and empower students to graduate despite economic challenges.

College Dropout Rates by Demographics

College Dropout Rates by Race

In totality, reports indicate that Asian students are least likely to drop out of college, while Black students are more likely to. Here are the details on college dropout rates by race and other data related to the issue.

Asians

The five-year graduation rate for Asian students pursuing bachelor's degrees is 74.8%.
Asian students account for 2.6% of all dropouts.
A 2024 status report on race and ethnicity in higher education from the American Council on Education reveals that Asians have higher levels of educational attainment than any other racial or ethnic group. The data shows that 33.1% of Asian adults aged 25 and older have a bachelor’s, 19.3% completed a master’s, and 7.9% obtained a professional or doctoral degree.
7.7% of Asian adults aged 25 and older have some college but no degree.

White/Caucasian

The five-year graduation rate for Caucasian students pursuing bachelor's degrees is 65.6%.
White students account for 32.9% of all dropouts.
53.6% of college graduates are White or Caucasian.
14.9% of White adults aged 25 and older have some college but no degree.

Hispanic/Latino

The five-year graduation rate for Hispanic students pursuing bachelor's degrees is 55.4%.
In a 2023 Gallup survey of currently enrolled students in higher education, 43% of Hispanic respondents said they had thought about withdrawing from their educational program.
Furthermore, 59% of Hispanic adults say financial aid and scholarships are highly important to get them to enroll in postsecondary programs.
13% of Hispanic/Latino adults aged 25 and older have some college but no degree.

American Indians/Alaska Natives

The five-year graduation rate for Native American students pursuing bachelor's degrees is 43.4%.
Native American students account for 1% of all dropouts.
0.5% of college graduates are American Indian/Alaska Native
18.4% of American Indian/Alaska Native adults aged 25 and older have some college but no degree.

Black/African American

The five-year graduation rate for African American students pursuing bachelor's degrees is 42.6%.
African American students account for 14.1% of all dropouts.
According to the previously mentioned 2023 Gallup survey on higher education, 40% of Black respondents said they have considered leaving their program int he last six months.
18.1% of Black/African American adults aged 25 and older have some college but no degree.

More Than One Race

The five-year graduation rate for students of more than one race pursuing bachelor's degrees is 57.4%.
Individuals of two or more races make up 3.7% of college graduates.
18% of adults of more than one race aged 25 and older have some college but no degree.

The chart below presents the distribution of adults aged 25 and older who have some college but no degree.

College Dropout Rates by Gender

College dropout rates by gender show that women tend to fare better than men in college. Data from the National Student Clearinghouse Research Center shows that students who had some college but failed to get a credential are 46.5% men and 44.5% women, with 9% missing.

In terms of graduation rates, Education Data Initiative found that 67.6% of females graduate in six years, while only 61.1% of males do. They further claim that:

In public universities, 66.2% of women graduate compared to 60.2% of men.
In private nonprofit schools, 71.9% of women graduate, while 64.6% of men complete their postsecondary program.
In private for-profit institutions, 34.5% more men graduate than 32.8% more women.

Suffice it to say, women are more likely to finish college, as Harvard University history and economics professor Claudia Goldin claims that the majority of bachelor’s degrees are awarded to female graduates rather than their male counterparts. She further asserts that:

“Historically, men have been more likely to drop out of school to work in hot economies, whether it’s in the factories of World War II or the fracking mines of the Dakotas".

Men

The United States Bureau of Labor Statistics (BLS) reports that the college enrollment rate of male students who recently finished high school, as of October 2023, is 57.6%.
Of the college dropouts who re-enroll, 40.4% are men.

Women

The college enrollment rate of female students who recently finished high school, as of October 2023, is 65.3%.
Of the college dropouts who re-enroll, 56.6% are women.

College Completion Rates for Low-Income Students

Without a doubt, the amount of available funds for schooling also affects an individual’s ability to stay in school or drop out.

The 2024 Sallie Mae report on college completion in America reveals that 46% of students who grew up in low-income households have considered leaving school.
In comparison, only 31% of those from middle-income households and 24% of students from high-income households have considered doing so.
50.8% of middle-income students are likely to take out federal loans.

College Dropout Rates for Students in Foster Care

Foster kids tend to have a smaller likelihood of finishing college due to financial challenges and other hardships that are unique from groups that are also identified as “at risk” of dropping out.

A report from the University of Wisconsin at Madison’s Institute for Research on Poverty published in 2023 highlights how nearly 75% of low-income, first-generation college students persist through their first year of school. In comparison, less than 50% of foster youth are able to do so.
Compared to most college students, individuals with foster care histories typically have minimal support from kin in navigating the transition to adult independence and financial self-sufficiency.
Many foster youth also have to deal with homelessness while in college.

College Dropout Rates for Students with Disabilities

Special Education is given to students diagnosed with one or more of the 13 disabilities. according to the federal Individuals with Disabilities Education Act. However, due to the lack of accommodations provided by higher education institutes, students with disabilities tend to have higher dropout rates for postsecondary education.

An estimated 3.5 million students with disabilities are in college, based on a 2024 report published by the U.S. Government Accountability Office.
Studies suggest that college students with disabilities are more likely to drop out due to difficulties in disclosing their disability as a prerequisite for getting academic assistance, lower social integration, insufficient accommodations, and their lower grade point average.
BLS reports that in 2024, approximately 23% of all people with a disability completed a bachelor’s degree or higher compared with about 42% of those with no disability.

How Do Academic Support Services Impact Student Success?

Academic support services such as targeted tutoring, personalized academic advising, and mentorship programs have shown significant promise in enhancing student retention and success. Institutions that implement early warning systems, peer mentorship, and structured orientation programs often see an improvement in students’ ability to navigate academic challenges without disengaging. Data-driven interventions can identify at-risk students before they encounter insurmountable difficulties, allowing for the timely allocation of resources and tailored support. Furthermore, collaboration between academic support teams and career counseling services facilitates smoother transitions from classroom learning to real-world applications. Students exploring accessible degree options, including the easiest bachelor degree pathway, may benefit from these integrative strategies, which address both academic and professional skill gaps.

College Retention and Graduation Rates by State

Retention Rate

Retention rate pertains to the percentage of first-time freshmen undergraduates who continue to enroll in the following academic year. Persistence rate, on the other hand, refers to students returning for a succeeding year in college regardless of the school.

In U.S. colleges, the retention rate is 68.2%, while the persistence rate is 76.5% as of Fall 2023.

A 2022-2023 study from the National Student Clearinghouse further details that:

Community colleges have made significant strides in improving retention rates over the past decade. According to recent data, retention rates have increased by 3.7 percentage points, rising from 51.3% for students who started in the fall of 2013 to 55.0% for those who began their studies in the fall of 2022.
Public four-year institutions have also experienced significant improvements in retention rates since 2013. The fall 2022 entering cohort demonstrated a notable increase of 3.1 percentage points in retention compared to the fall 2013 entering students, reaching a retention rate of 78.0%.

Graduation Rate

The Free Application for Federal Student Aid (FAFSA) website describes graduation rate as the percentage of first-time freshmen undergraduates who complete their degree “within 150% of the published time for the program". This means that four-year course undergraduates are expected to finish their degree in six years, while two-year course enrollees should graduate in three.

Yet, despite the soaring numbers of college enrollments, college dropouts tend to reduce the average graduation rate, which is currently 52% for students in four-year colleges and universities. Here are some more interesting facts:

49% of all postsecondary graduates have a bachelor's degree.
22.3% of students with bachelor's degrees took over four years to earn their degree.
24.5% of postsecondary graduates earned an associate degree.

Graduation Rates by State

In totality, the District of Columbia reports the highest college retention rates by state at 63.6%, while West Virginia ranks lowest at 23.3%. Using 2025 data from World Population Review (WPR), the states with the highest and lowest college graduation rates are illustrated in the chart below:

Why Do Students Drop Out of College?

Based on statistics, America’s growing college dropout rate is attributed mostly to financial challenges. With tuition costs increasing at a five-year average annual rate of 3.08% and with universities requiring more from applicants, students have to decide between finishing their degree or dropping out to resolve their lingering hardships.

Financial Concerns

Based on research from Sallie Mae, 53% of at-risk students admit to having trouble affording the school's tuition, and 50% are facing difficulties shouldering additional expenses such as living costs, food, and textbooks, among others. Interestingly, among learners who are expected to graduate on time, 21% and 26% cited the same challenges, respectively. Online MSW programs affordable enough to accommodate many households and similar degrees come as viable options.

Many forms of financial aid are available, but their ability to reduce education costs may not be sufficient for many students. After all, 42% of at-risk learners graded the financial support they received as either "fair" or "poor," despite the presence of scholarships and the financial advice afforded by schools.

Given the seemingly insurmountable costs, only 25% of at-risk students planned to pay for the duration of their schooling before enrollment. This is much lower than the 46% share of on-track students who financially planned for their studies early on.

Motivation and Focus

Only 56% of students at risk of dropping out entered their postsecondary studies with a vision of their future careers, and 30% experienced a change in interests when they enrolled. This fragile disposition gradually erodes their commitment to finishing their studies, which calls for better career planning initiatives by schools and districts.

Moreover, the Sallie Mae survey reveals that, despite 82% of at-risk students agreeing that having a career plan going into college greatly contributes to their success, only 67% are confident in their career direction in school. It does not help that only 50% of at-risk students thought that the school's resources for helping them find the right degree to pursue were "excellent" or "good."

Mental Health Challenges

Around 18% of students admitted that mental health challenges were primary considerations for leaving school. The Sallie Mae report reveals that only 31% of at-risk students considered their mental health as "good" or "excellent" compared to 61% of on-track students.

This is alarming as students face pressure from school, their peers, and their households, and these statistics underscore the need for improved mental health initiatives from schools:

66% of at-risk students do not find it easy to make new friends.
67% of at-risk students do not think it is easy to stay healthy.
78% of at-risk students do not find it easy to prioritize mental health.

Should they fail to integrate themselves with university life—be it in academics, finances, or their full-time commitment—students might consider dropping out in order to seek more accommodating opportunities elsewhere.

Students who want to make it their mission to help at-risk learners can pursue programs like a Texas online psychology degree. Courses on assessing psychological conditions and conducting interventions can help improve the daily lives of patients, especially those experiencing severe cases of stress, anxiety, or depression.

What are the current trends in reducing college dropout rates?

To address the rising college dropout rates, several trends are emerging that focus on making education more accessible, affordable, and supportive. Here are some key trends that are helping students stay in school:

Shift to Online Learning: Online education continues to grow in popularity, especially for working students. Affordable online programs, such as
Personalized Support Systems: Colleges are increasingly offering tailored support systems that cater to individual needs. These may include mentorship programs, peer support networks, and academic counseling to keep students engaged and on track to graduate.
Emphasis on Financial Aid: With the growing awareness of the financial challenges students face, colleges are expanding their financial aid options. This includes offering more scholarships, grants, and affordable tuition rates to reduce the burden of student loans, a major contributor to dropouts.
Flexible Learning Pathways: Schools are offering more flexible learning pathways, such as part-time studies, hybrid models, or community college transfer options, to make education more attainable for non-traditional students.
Early Intervention Programs: Universities are introducing early intervention programs that identify students at risk of dropping out and provide them with resources and support before they make the decision to leave.

These trends are helping students overcome the barriers that often lead to dropping out, ensuring that they stay engaged and successful throughout their college journey.

Can alternative education pathways support career success after dropping out of college?

Alternative education options have evolved to offer targeted skills and industry-specific credentials that help bridge the gap left by traditional college dropout pathways. These programs enable individuals to acquire specialized training, enhance technical competencies, and engage in stackable learning opportunities designed for a rapidly changing labor market. Strategic partnerships between educational institutions and industry leaders further bolster the practical relevance of these credentials, providing graduates with opportunities to meet specific employer demands. For flexible and cost-effective learning, consider exploring FAFSA-approved online certificate programs.

Finishing College Is Key to a Bright Future

Are college dropout rates increasing? Yes, but there are many factors that come into play when students decide to drop out of college. Be it the rising costs or demanding academics, over the years, similar reasons have continued to bring about college dropouts, regardless of a university’s student demographic, status, and location.

But keep in mind: Getting a college education is the key to achieving a successful future. Therefore, what is important now is to understand how these challenges impact aspiring university graduates in order to plan ahead and finish your degree on time.

Key Insights

High College Dropout Rate: Approximately 32.9% of undergraduate students in the U.S. drop out of college each year, which presents a significant concern for the education sector.
Financial Impact: According to Sallie Mae, 46% of college students who grew up in low-income households have considered leaving school. In comparison, only 31% of those from middle-income households and 24% of students from high-income households have considered doing so.
Demographic Disparities: Dropout rates vary significantly by race and gender, with Black and Hispanic students more likely to drop out compared to Asian and White students. Women tend to have higher graduation rates than men.
Retention and Graduation Rates: The average retention rate in U.S. colleges is 68.2%, while the average graduation rate is only 64%, indicating a substantial number of students do not complete their degrees.
Factors Influencing Dropout: Financial concerns, motivation or life changes, and mental health challenges are the main reasons students leave college.

Can Accelerated Degree Programs Bridge the Gap for Non-Traditional Students?

Non-traditional students increasingly seek flexible, efficient pathways to credentials without compromising academic quality. Accelerated degree programs offer a condensed curriculum that reduces time-to-completion while maintaining rigorous standards, thereby addressing both financial concerns and evolving career demands. By choosing accelerated programs, learners can optimize their educational journey and reenter the workforce sooner with industry-relevant skills. This approach provides a viable alternative to traditional timelines, catering to individuals who require adaptable learning solutions to balance personal, professional, and financial responsibilities.

Can Accelerated Associates Degrees Shorten the Path to Workforce Entry?

Accelerated associates degrees offer a streamlined alternative for students facing time and financial constraints, enabling a rapid transition into the workforce. These programs deliver industry-focused curricula that equip learners with essential technical proficiencies and hands-on experience tailored to current market demands. For individuals seeking an efficient and cost-effective credential to jumpstart their careers or pivot professionally, pursuing an accelerated associates degree can be a strategic choice that minimizes educational downtime while enhancing employability.

Can online education offer an affordable and flexible pathway to career success?

Online educational programs provide working professionals with adaptable options that integrate flexible scheduling, competitive tuition, and comprehensive digital support. These programs leverage technology to offer interactive coursework and targeted career services without the constraints of traditional campus-based education. Effective online environments support skill enhancement and professional networking while accommodating the demands of a full-time work schedule. For further insights into cost-effective online alternatives, explore "What are the top online colleges for working professionals?".

Can a one year online master’s program pave the way to career transformation?

Graduate credentials can offer a strategic boost for individuals seeking rapid career advancement after academic setbacks. A compressed graduate program reduces opportunity costs and aligns educational investments with current market demands. Evaluating program quality, accreditation, and its relevance to industry trends is essential for ensuring a positive return on investment. For professionals aiming to reskill quickly and reenter competitive fields, programs like the one year online masters program can serve as an efficient pathway to acquiring advanced skills while minimizing downtime.

FAQs

What is the current college dropout rate in the U.S.? The current college dropout rate in the U.S. is around 32.9%, with many students leaving their studies due to various challenges.
Why do students drop out of college? Students drop out of college primarily due to financial pressures, motivation or life changes, and mental health challenges.
What are the financial impacts of dropping out of college? College dropouts tend to earn 35% less annually than graduates, are more likely to live in poverty, and often face significant financial difficulties due to a lack of higher education credentials.
How do dropout rates vary by demographics? Asian students have the lowest dropout rates, while Black students have the highest. Women generally have higher graduation rates than men, and low-income students are more likely to drop out compared to their higher-income counterparts.
What is the average retention rate for U.S. colleges? The average retention rate for U.S. colleges is about 68.2%, indicating that nearly three-quarters of first-time freshmen continue their studies into the next academic year.
What is the average graduation rate for U.S. colleges? The average graduation rate for U.S. colleges is 64%, which means a significant number of students do not complete their degrees within the expected timeframe.
What financial challenges contribute to college dropout rates? High tuition costs, inadequate financial aid, and the need to work while studying are major financial challenges that contribute to college dropout rates.
How does family support influence college retention? Lack of family support is a contributing factor to student dropouts, as financial and emotional backing from family can significantly influence a student's ability to persist in their studies.
What are some potential solutions to reduce college dropout rates? Increasing financial aid, providing academic support, offering flexible learning options, and addressing the specific needs of at-risk demographics can help reduce college dropout rates.
Is completing a college degree important for future success? Yes, completing a college degree is crucial for future success as it leads to higher earnings, better job security, and a reduced likelihood of living in poverty.