News & Press
Graduate Enrollment, Retention Increasingly Influenced By Economic Conditions, Policy Changes
A survey of 1,000 online graduate learners reveals how economic pressure, federal loan policy changes, and career priorities are shaping enrollment and retention decisions
Economic conditions – including inflation and job market volatility – and evolving federal student loan policy are increasingly shaping whether and how students pursue graduate education, according to a new study commissioned by 2U and conducted by Hanover Research. As a partner to more than 250 institutions worldwide, 2U has a broad view into how enrollment trends are evolving across programs, learner populations, and market conditions.
The Spring 2026 survey of 1,000 prospective and current online graduate learners across the U.S. found that cost remains one of the leading barriers to enrollment, not only in terms of final tuition, but also in how expectations around total cost are communicated. Tuition cost (55%) and program reputation (40%) remain the top barriers to enrollment, following unclear tuition/program costs (37%), limited information about financial aid (32%), and lack of loan availability (24%), signaling an opportunity for institutions to provide earlier and more transparent guidance on funding pathways.
Key Takeaways
1) Economic conditions remain the primary driver of enrollment decisions.
64% of students say economic conditions, including inflation and job market volatility, are "very" or "extremely" influential in their decision to enroll, followed closely by changes to federal student loan structures (58%). The political climate and geopolitical instability also play a role (47%).
2) Limited or late information about tuition cost is among the leading barriers.
Beyond tuition (55%) and program reputation (40%), unclear costs (37%), limited financial aid information (32%), and loan availability (24%) are also persistent barriers. Nearly three-quarters of students make funding decisions before or during program research, underscoring the need for earlier, clearer cost transparency.
3) Policy changes to financial aid are creating real enrollment risk.
While 82% of students have heard of the One Big Beautiful Bill Act, only 40% are familiar with what it changes and how it impacts them.
- Once informed, 27% of prospective students say they would be somewhat or much less likely to enroll, highlighting a critical communication gap for institutions.
- Prospective students who don't understand these changes may not have time to explore alternative funding options, delaying their enrollment.
- Among currently enrolled students, there is concern about increasing out-of-pocket costs (45%) and repayment terms (33%).
4) Online programs significantly expand access as career outcomes, ROI, and flexibility become baseline expectations
Almost half of students (41%) attend a program that would be hard to reach if not online. Timing and flexibility rank as the most influential factor in pursuing the online modality (54% include it in their top three). More than half of students rank higher salary in their top three goals of pursuing a graduate degree (51%). Nearly half (40%) plan to pursue another degree in the next two years, and 40% of students self-identify as lifelong learners.
5) Programs can differentiate through support, community, and flexible learning
- Support: Academic advising (44%), technical support for online tools (38%), and job placement support (36%) are most critical to prospective students when choosing a program.
- Community and Peer Interaction: 71% of students rate building a sense of community as "very" or "extremely" important.
- Flexible & Tech-Forward Learning: 43% name access to recorded lectures and on-demand content as a top program feature when selecting a program. Interactive elements (discussion boards and group projects), tailored learning plans, mobile‑friendly learning platforms, accelerated pathways, and shorter terms are also appealing.
To learn more or speak with a 2U expert about these findings, contact media@2u.com.
Methodology
The survey was conducted in March 2026 among 1,000 online graduate learners across the U.S. - 639 currently enrolled and 361 prospective students. It was commissioned as part of 2U’s ongoing work to improve partner program competitiveness, inform new content and growth, and support strong student outcomes.
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