During an economic downturn, a high-quality postsecondary credential matters more than ever, but colleges struggle to sustain per-student funding without raising tuition.

A high-quality postsecondary credential matters now more than ever.
Ready for careers: Postsecondary certificates, diplomas, and degrees are essential to meeting the demands of Tennessee’s changing workforce. Over the last decade, the portion of Tennesseans with a postsecondary credential increased from 38 percent to 43 percent.1 This progress, however, is still not enough to meet the needs of the state’s workforce.2 Tennessee’s colleges of applied technology (TCATs), community colleges, and universities must continue supporting all students as they pursue high-quality credentials to help prepare them to succeed in tomorrow’s economy.
Ready to advance: The average college graduate earns more over a lifetime than a high school graduate nationwide and in Tennessee.3 A postsecondary credential – whether an industry certificate, associate’s degree, or bachelor’s degree – is an investment in higher wages and increased job opportunities for students. The increase in earnings between a high school and college graduate is even more important for African American and Hispanic students, groups that have been historically underserved by higher education and that remain underrepresented among college-educated Tennesseans.4
Ready for the future in hard economic times: As the economic recession resulting from COVID-19 continues, students with college degrees will likely have greater job security. Businesses hold postsecondary credentials in higher regard when making hiring and firing decisions during economic recessions.5 During these times, a stronger policy focus on postsecondary education is essential to ensuring that every student graduating high school in the state has an opportunity to earn a postsecondary credential that carries value in Tennessee’s economy.
Economic downturns make it difficult for colleges to sustain per-student funding levels without raising tuition.6
College affordability: State appropriations provide a sizable portion of recurring revenue for Tennessee’s public colleges and universities.7 In times of economic decline, strained public sectors are vying for fewer state resources. When state budget reductions to postsecondary education occur, colleges and universities become more dependent on tuition for revenue. However, increases in tuition and fees mean the financial burden is shifted to students, which can hinder enrollment in college, persistence from semester to semester, and ultimately completion of a credential. And these trends will not be felt evenly. Shifts in college affordability have been shown to have a disproportionate effect on low-income students.8
Student success: When colleges and universities have more resources, their students are more likely to earn a credential.9 Additional resources not only enable colleges and universities to keep tuition affordable but also to more efficiently preserve institutional scholarships and financial aid, specific academic programs, and meaningful student support services such as summer bridge programs and career advising.10
Over the last decade, Tennessee’s policymakers and education leaders have built a student-focused policy foundation that simplifies, supports, and broadens access to college. Maintaining and renewing this commitment to students will put our state’s colleges and universities in a strong position to weather the ongoing economic impact of COVID-19.